ENSURING REVIVAL & CONTINUATION: ESSENCE OF INSOLVENCY AND BANKRUPTCY CODE, 2016
Insolvency and bankruptcy Code, 2016 is to ensure revival and continuation of the Corporate Debtor, where liquidation would be the last resort and scheme and structure of the code should be interpreted keeping in view the objectives of the code. Supreme Court of India in the matter of Jaypee Kensington Boulevard Apartments Welfare Association & ORS. VS NBCC (India) Ltd. & ors. observed the same. The code is a linear process that both creditors and debtors follow when insolvency is triggered; a collective mechanism for resolving insolvency within a framework of equity and fairness to all stakeholders to preserve economic value in the process; a time bound process either ends in keeping the firm as a going enterprise, or liquidates and distributes the assets to the various stakeholders. The Preamble of Insolvency and Bankruptcy Code. 2016 gives an insight into what is sought to be achieved by the Code. Preamble states the code as: “An Act to consolidate and amend the laws r...