The Insolvency and Bankruptcy Code (IBC) came into effect on May 28, 2016, with the President's assent. It was introduced in Parliament as a framework to resolve insolvency proceedings between corporate giants and individuals within a specific timeframe. In 2025, certain amendments to this code were introduced and passed. Under the IBC, if a company goes bankrupt and a resolution is not possible, there are clear procedures to sell the company’s assets through an auction. This is known as the liquidation process.