There was no single law in India that dealt with the insolvency & bankruptcy. Therefore, the Government of India with the objective of consolidating & amending the laws relating to reorganization & insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximization of value of assets of such persons & to promote entrepreneurship etc introduced the Insolvency & Bankruptcy Code, 2016 which is often considered as the biggest insolvency reform act. The bankruptcy law designs a set of rules and processes to resolve all kind of insolvency and bankruptcy issues against the corporate persons. The law has come into force on 28th May 2016 while some of the laws have been implemented on 1st December 2016. And some of the parts are yet to be notified.
