The Micro, Small, and Medium Enterprises (MSMEs) which is considered as the backbone of the Indian economy has got more power with the recent Insolvency and Bankruptcy Code (IBC). The recent Insolvency and Bankruptcy Code (IBC) would help the MSMEs to recover debts more quickly and also help in the liquidation process. The current slump in the Indian economy would receive an impetus with the recent development which would also ensure ease of doing business for the MSMEs which has been suffering a lot due to crisis in the operational funds. 

The Insolvency and Bankruptcy Code (IBC) empowers the MSMEs to get back the dues through the Corporate Insolvency Resolution Process (CIRP) or through liquidation of defaulting debtor entity. The MSMEs can file an application before the National Company Law Tribunal (NCLT) to initiate the proceedings against the debtors which include Private Limited company, Public Limited company, and Limited Liability Partnerships (LLP) which shall be treated and considered as defaulting corporate debtors and actions can be taken against these entities. 

The  National Company Law Tribunal (NCLT) upon receipt of application has the power to appoint an Interim Resolution Professional (IRP) who takes over the management of the defaulting debtor.  The professional shall make sure that the maximum realization of debts can take place as a consequence of the Corporate Insolvency Resolution Process (CIRP). Also, he ensures that the defaulting debtor should as far as possible continue to operate as a going concern so as to be able to generate funds after liquidation, in case the same is required. In an event, a resolution is not drawn under the Corporate Insolvency Resolution Process (CIRP), liquidation proceedings can be commenced subject to the order of the National Company Law Tribunal (NCLT). 

The Supreme Court has further added wings to the code and stated that the MSMEs can appeal and seek remedy for the cases which are old as well apart from the new cases, thus making it easier for the MSMEs to file an application before the National Company Law Tribunal (NCLT)  which arose prior to the amendment of the Insolvency and Bankruptcy Code (IBC). 

The amendment to Insolvency and Bankruptcy Code (IBC) is certainly going to help and boost the MSMEs in doing business and contribute to the growth of the society and the economy.