The Insolvency and Bankruptcy Code is an Act to consolidate and amend the laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximisation of value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders including alteration in the order of priority of payment of Government dues and to establish an Insolvency and Bankruptcy Board of India, and for matters connected therewith or incidental thereto.
The Insolvency and Bankruptcy Code was introduced in Lok Sabha in December 2015. It was passed by Lok Sabha on May 5, 2016 and by Rajya Sabha in May 11, 2016. The Code received the assent of the President of India on 28 May 2016.
Click here to watch the discussion made in Rajya Sabha before passing of the Insolvency and Bankruptcy Code.