What is the framework for insolvency resolution and bankruptcy in India?

The Insolvency and Bankruptcy Code, 2016 serves as the primary legal framework for insolvency resolution and bankruptcy in India. It was enacted to consolidate and amend existing laws related to the insolvency resolution process for individuals, corporations, and partnerships. This code introduced a time-bound process for resolving insolvency, aiming to balance the interests of all stakeholders involved, including creditors and debtors.

The Code established distinct mechanisms such as the Corporate Insolvency Resolution Process (CIRP) for corporate debtors, and the Personal Insolvency Resolution Process for individuals, ensuring that the procedures for resolving financial distress are systematic and efficient. This has significantly streamlined what was an earlier fragmented landscape of insolvency laws in India.

In contrast, while the Companies Act 2013 does include provisions related to corporate insolvency, it is not solely dedicated to the insolvency framework and does not provide a comprehensive resolution process like the Insolvency and Bankruptcy Code does. The other options, such as the Department of Revenue Act and the Department of Public Enterprises Act, do not pertain specifically to insolvency resolution or bankruptcy matters, therefore, they are not relevant to the question.