Cheque Cases / Bankruptcy

Cheque Cases in India:

Cheque cases in India typically involve legal issues related to dishonored or bounced cheques. Under Section 138 of the Negotiable Instruments Act, 1881, the drawer of a dishonored cheque may face criminal liability if the cheque is issued for discharge of a debt and is dishonored due to insufficient funds or other reasons. Legal proceedings may be initiated, and the drawer could face penalties, including fines or imprisonment.

Bankruptcy Law in India:

Bankruptcy law in India primarily operates under the Insolvency and Bankruptcy Code (IBC), which was enacted in 2016. The IBC provides a consolidated framework for the resolution of insolvency and bankruptcy cases, aiming to promote a time-bound and efficient process. Individuals and corporate entities facing financial distress can initiate insolvency proceedings. The process involves the appointment of a resolution professional, formulation of a resolution plan, and, if necessary, the commencement of liquidation proceedings. The objective is to maximize the value of the debtor's assets and distribute them among creditors in a fair and orderly manner. The IBC has brought significant changes to the insolvency landscape in India, emphasizing swift resolution and the revival of viable businesses.