Plethora of Acts which Led to the Development and Formation of Insolvency and Bankruptcy Code 2016

Abstract

The Insolvency and Bankruptcy framework is not a novel concept. It traces its history back from the British regime when Provincial and Presidency Act used to determine and control the insolvency procedures. Subsequently, with the passage of time, many regulations came up on the subject matter but since no specific regulatory authority was there to deal with such anomalies, which later resulted in the overlapping of certain existing laws, as different acts infer diverse judicial authority ensuing in dearth of lucidity and certainty. Furthermore, no precise or concrete data was present, which could state the ground reality of the company’s indebtedness and their bad loans. Hence, there was a dire need for a uniform and unvarying law to avoid the multiplicity of the cases of same nature, and in that sense IBC could be the fitting solution to this haziness. Consequently, this article has dealt with before and after independence laws with respect to Insolvency and Bankruptcy.