ANALYSIS OF THE INSOLVENCY AND BANKRUPTCY CODE, 2016

Enacted in December 2016 and introduced by Finance Minister Arun Jaitley, the Insolvency and Bankruptcy Code (IBC) 2016 is a significant modification to India's financial legal system. The IBC development was suggested by the Bankruptcy Law Reforms Committee (BLRC), which was chaired by Dr T.K. Viswanathan. In order to alleviate suffering, optimise value, encourage entrepreneurship, and enhance business, the IBC now unifies disparate insolvency rules under "umbrella legislation." Substituting debtor control during proceedings and favouring creditor benefits are examples of meaningful acts. They also offer a transparent liquidation waterfall. It applies to individuals, partnerships, LLPs, and businesses but excludes financial service providers. The IBC has significantly increased recovery rates and investor confidence, as well as India's insolvency resolution efficiency, despite challenges such as legal uncertainties and inter-legislative conflicts. As a result, it has emerged as a crucial engine for economic growth.