A Comprehensive Insolvency Regime is the indicator of any Nation’s Economic development. Economic empowerment directly impacts economic development. It is evident by observation that the world’s Economic development largely depends on the nation’s Economic Discipline and Economic Efficiency. Economic reform is a continuous process. Corporate development and Economic development are interdependent and interconnected. Economic development results from consistent reform in the field of Business and Corporate law. Insolvency is an integral part of corporate legal framework. The law that governs corporate insolvency has wide impact on the Economic Development of a Nation. In ancient society, the law of insolvency was more confined to the Creditors and Debtors, who were the main players of trade and business. Now, insolvency law has extended its wings beyond the Business community. This evolution happened over time as trade and commerce became an integral part of society and individuals. This socio-economic development made business systems more dynamic and ever-changing. The business started expanding across borders after globalization; until then, insolvency is being administered according to local rules of business communities. After the banking system was introduced in human civilization, a lot of change happened in how business operates. In the early days the banking system started helping the domestic needs of society; later, it became the source of investment to promote economic development.