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The Insolvency & Bankruptcy Code, 2016 which was passed by the Parliament on 11th May 2016 and received Presidential assent on 28thMay 2016 brought a major push to the existing insolvency regime in India for individuals, corporations, partnership firms, and other entities. Majorly, the insolvency proceedings in India are the ones initiated by the creditors on the ground of non-payment of debts. The basic aim of the Code is to provide common umbrella legislation relating to insolvency resolution in India both for the Indian creditors and the foreign creditors. The erstwhile legislative framework relating to insolvency was incorporated inCompanies Act, 2013; SARFAESI Act, 2002; SICA Act, 1985; Presidency Towns Insolvency Act, 1909; Provincial Insolvency Act, 1920, and Limited Liability Partnership Act, 2008 subjected to amendment from time to time. The presence of several mechanisms to deal with insolvency under diverse legislations presented a dire need of single, unified umbrella legislation to cater to the needs of various entities.

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