Global Economic Slowdown, Credit Crunch, and Decrease In Cross-Border Loans, Trade Financing,
And Fdi All Followed the 2008 Financial Crisis, Which Had a Negative Impact on Businesses All Around The
World. Commercial Bankruptcy Rules Are Needed to Effectively Liquidate and Reorganize Unviable
Enterprises and Optimize the Entire Value of Proceeds Obtained By Creditors, Owners, Workers, or any Other
Stakeholder. This Is Why There Has Been an Increase In Corporate Insolvencies. Credit Markets In India
Are In a Distressed Situation Because to India's Poor Insolvency Process, Considerable Inefficiencies, And
Systemic Exploitation. With a Focus on Creditor-Driven Bankruptcy Resolution, the Code Promises
Sweeping Changes. Early Detection and Maximization of the Value of Bankrupt Businesses Are the Goals
Of This Program. Bilateral and Reciprocal Agreements With Other Nations Are Also Part of the Code's
Provisions For Dealing With Cross-Border Bankruptcy.