Author: Anakha S J, Student at Ajeenkya DY Patil University, Pune
Co-Author: Prof. Sangeeta Verma, Assistant Professor at Ajeenkya DY Patil University, Pune
Insolvency can be a situation where a person, company or alternative organization is unable to meet its financial obligations to pay debts by the time they become due. Legally, insolvency refers to a situation where an individual or company’s debts exceed its assets. The role of insolvency is that the law should not require the place of free action in the market, but rather allow unfortunate firms to exhibit their action where it is likely to be of general benefit or where it is unlikely to end. corporate life efficiently, competently, responsibly and fairly. These cases may involve quick funds that ease the financial position of the balance sheet, but not the cash flows.
Keywords: Insolvent, Liabilities, Solvency, Statutory, Debts.