LEGAL PRACTICES OF INSOLVENCY AND BANKRUPTCY IN INDIA

Bankruptcies have historically followed the business cycle closely. Failure of certain company strategies is a natural part market economy’s process. When firm fails, optimum outcome for society quick renegotiation between financiers, to fund going concern with new structure obligations and management team. The purpose bankruptcy legislation recover an entity’s debt distribute its assets among competing claimholders. As result, RBI’s asset quality reviewers identified extremely high number NPAs. government’s most major change insolvency legislation. On heels adoption Insolvency Bankruptcy Code, India jumpedfrom 108thto 52nd in resolving category, while rating improved significantly dealing construction permits 27th from trading across borders 68th 80th. this study look into regulatory framework bankruptcy. impact Code on Indian economy also discussed study. KEYWORDS: Insolvency, Bankruptcy, Regulatory, SARFAESI Act, National Company Law Appellate Tribunal (NCLAT)