```1) Insolvency and Bankruptcy Code (IBC)-
For decades this has waited and prevented many businesses from restructuring their debts and preventing banks from getting back their money. This is helping banks use the law to get back their assets and reduce NPAs. The Insolvency and Bankruptcy Code of 2016 is one of the biggest economic reforms adopted by India. It’s a rare example of a much-needed law that witnessed a fast roll-out and implementation.
According to statistics, nearly 60,000 bankruptcy cases are pending in Indian courts and it takes four and a half years for a company to shut down its operations in India. This bill will reduce the time taken to 1 year. Both ease of doing business and global competitive index ranking criteria have one parameter in common i.e. resolving insolvency.
Before this law, the liquidation of companies was prosecuted under various laws like Sick Industrial Companies Act, The Provincial Insolvency Act, Companies Act, and Recovery of debts due to banks and financial Institutions Act, The Provincial Insolvency Act etc. The laws from British era that dealt with individual debtors made the process more complex. Also, the overlapped jurisdiction of different authorities like High Court, the National Company Law Tribunal, Debt Recovery Tribunal slowed down the debt recovery process. This complexity of laws and overlapping of jurisdiction was one of the main sources of problems for the banks to recover their loans. The law will help in improving ease of doing business by consolidating all the laws dealing with Insolvency and bankruptcy into one single entity.
In 2016, India ranked 130th in Ease of doing business. In 2018, India has risen to 100. ```
