The Insolvency and Bankruptcy Code, enacted in 2016, is a landmark legislation that consolidates and amends the laws relating to insolvency and bankruptcy in India. It aims to promote entrepreneurship, facilitate ease of doing business, and ensure timely resolution of insolvency, thereby preserving the value of assets and protecting the interests of creditors.
When a company faces financial difficulties and can't pay its debts, filing claims under the Insolvency and Bankruptcy Code (IBC) becomes a crucial step in the resolution process. This process allows creditors, those owed money by the insolvent company, to assert their rights and seek repayment of outstanding dues.
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