The legislature might come up with a new structure by adding more DRT benches and revisiting provisions relating to individual insolvency.Although liquidation and bankruptcy seem to be similar words, bankruptcy of a company is not the same thing as winding up. Indian laws do not define bankruptcy. The Companies Act, 1956, contained provisions for winding up of a company in case default is committed by such a company to honour its dues. Similar provisions are incorporated in the Companies Act, 2013. But the government realised that these provisions are not effective enough to recover dues from incorporated entities. Therefore, the Insolvency and Bankruptcy Code, 2016, was enacted.
IBC provides the right to corporate and fi…
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