Meaning
India’s law for resolving financial distress.
Definition
The Insolvency and Bankruptcy Code (IBC) is India’s unified framework for insolvency and bankruptcy resolution of corporate persons, partnership firms, and individuals.
How It Works
It provides a time-bound process for creditors to recover dues, either by reviving the defaulting business or liquidating assets. The focus is on maximizing asset value.
Key Objectives
Consolidating existing laws, promoting entrepreneurship, balancing stakeholder interests, and ensuring efficient, time-bound resolution are its main goals.
Author
