The Insolvency and Bankruptcy Code 2016 (IBC) is vital in shaping the Corporate Insolvency Resolution Process (CIRP) for Indian businesses and companies. The research explores the critical legal subtleties to analyse the key paths provided with the IBC 2016 and choosing the appropriate process of “rehabilitation and liquidation of insolvent businesses in India beginning with the country’s insolvency restructurings and rapid economic progress.” The choice of the resolution procedures aims to interpret rehabilitation as a practical and viable approach with quantifiable consequences as compared to liquidation and analyses major aspects such as maximizing economic worth for stakeholders, delaying the resolution process herein, liquidation or insolvency, creditors looking for incentives, a viable restructuring process, sustainability of the businesses, and improper institutional capacity of restructuring as referred to the doctrinal provisions of the code. The study employs a mixed-methods approach employing real statistical data that uses doctrinal legal analysis of empirical research with institutional data from the Insolvency and Bankruptcy Board of India as well as qualitative research with statutory provisions, National Company Law Tribunal judgments, judicial precedents, case reviews, and legal reports pertaining to the procedure under the CIRP, IBC, and other related laws. A comparative study with insolvency resolution practices in the United Kingdom, the United States of America, and the European Union for executing the rehabilitation approach along with landmark cases from all of these in the past as well as those of recent times is integrated effectively. The outcomes depict the rise in implementation of rehabilitation techniques over liquidation by as much as 30 % on an average as compared to the latter. Employing the appropriate methods gives the readers, legal experts, counsels, academicians, and further research enthusiasts the predilection to choose rehabilitation as a better procedure of resolution in India’s insolvent businesses, as it conserves employment, capitalizes the economic worth, sustains businesses, achieves stakeholder gratification, and provides long-term economic benefits, further explaining the prospective need to progress research into viable options, taking into account the pros and cons of this process over liquidation as well as the factors that influence creditor composition and bidder interests.