Developing economy like India has always embraced the ideas of evolution in its possible sphere. At the same time stringent provision one require to watchdog the development. As in the case of insolvency and bankruptcy laws, previously there were various provisions of law for the insolvency resolution for the different entities but to consolidate all the provisions under the common legislation this Insolvency and Bankruptcy Code, 2016 was introduced.A debtor becomes insolvent when he is unable to fulfill his obligations which he had promised to his creditors or unable to pay his outstanding debts. And Bankruptcy is a condition when the adjudicatory authority declare the debtor who unable to pay his debts, an insolvent person. This entrepreneur friendly legal regime was introduced by the government to give reality to the dream of getting India to one step closure to become developed nation and to increase the ease of doing business. This law was introduced to protect and grant the relief to the innocent debtor who is not in a condition to pay his dues due to any unforeseen situations and also protect the interest of creditors who gave debt to the debtor in a hope that they will get their money back at some point of time as decided between debtor and creditor. This law provides the process of insolvency resolution of corporate body, partnership firm, individual, sole proprietorship etc. Under corporate insolvency resolution process there are three types of person are defined who can file application for the initiation of insolvency resolution process, these person are known as corporate debtor, operational creditor and financial creditor. One of the merit of this law is that it provides speedy resolution of insolvency within a span of 180 days.

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