Bankruptcy means a situation when a company was unable to pay its creditors due to instability in its business. Several bankruptcy cases are increasing day by day in India as from October to December there is a 30.29% increase in the bankruptcy cases which is affecting the Indian economy to a great extent, and a total number of bankruptcy cases in 2019 are 123.
As per latest reports and new orders of the finance minister, India is planning to halt its bankruptcy cases for a year and companies will not be able to file for bankruptcy proceedings in the court as due to the reason of COVID-19 and its effects on the economy.
Even NALSA, National Legal Service Authority is also playing its role in providing services to the companies and firms which require legal service about their bankruptcy proceedings. NALSA is even taking a step forward and to ensure faith of firms and companies in the judicial system by making Alternative Dispute Resolution and other methods of the same types to make it a win-win situation for both the parties. With the help of such a method, a firm will be protected from insolvency, and it will also maintain its reputation and will help the firm to build back there system. They will be still able to get loans in a country like India, which otherwise will not be possible for them.
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