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Insolvency and Bankruptcy related cases are dealt under Insolvency and Bankruptcy Code, 2016 (IBC). IBC was firstly introduced in Lok Sabha in 2015, commenced with effect from 29 May 2016. IBC is a time bound process. Insolvency is pertaining to economic distress, whereas insolvency is the process which decides when the company can no longer meet their financial liabilities & obligations to the lenders. In the process of Insolvency proceedings, generally, company and the creditors together try to settle their dispute through alternate dispute resolution proceedings. Insolvency mostly arises due to poor cash flow in the company. Bankruptcy is a legal process wherein court orders and further decides how the insolvent debtor has to deal with unpaid obligations for some or all the debts which is imposed by the court order. Bankruptcy is a legal proceeding starts by the debtors viz. a viz. the debts from the creditors.