Insolvency and Bankruptcy Code, 2016 - Insolvency and Bankruptcy Board of India (Important) (Download PDF)

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The Insolvency and Bankruptcy Code, 2016 is a modern economic legislation. Section 240 empowers the Insolvency and Bankruptcy Board of India (IBBI) to make regulations subject to the conditions:

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Image of Insolvency and Bankruptcy Code 2016

Image of Insolvency and Bankruptcy Code 2016

  • Carry out the provisions of the Code
  • Consistent with the Code and the rules made thereunder
  • Made by a notification published in the official gazette
  • Are laid, as soon as possible, before each House of Parliament for 30 days.
Image of Insolvency and Bankruptcy Board of India

Image of Insolvency and Bankruptcy Board of India

Image of Insolvency and Bankruptcy Board of India

The Insolvency and Bankruptcy Code, 2016 (IBC)

  • Consolidate the existing framework by creating a single law for insolvency and bankruptcy
  • Repeal the Presidency Towns Insolvency Act, 19 Act, 1909 and Sick Industrial Companies (Special Provisions) Repeal Act, 2003

Insolvency Resolution

  • Code outlines separate insolvency resolution processes for individuals, companies and partnership firms.
  • Process initiated by either the debtor or the creditors.
  • Proposes a maximum time limit- for companies 180 days and for start ups, small companies and other companies 90 days

Insolvency and Bankruptcy Board of India (IBBI) - Insolvency Regulator

  • Establishes the Insolvency and Bankruptcy Board of India
  • Oversee insolvency proceedings
  • Will have 10 members- representatives from the Ministries of Finance and Law, and the Reserve Bank of India.

Insolvency Professionals

Process managed by licensed professionals

Bankruptcy and Insolvency Adjudicator

Two separate tribunals to oversee the process of insolvency resolution:

  • National Company Law Tribunal for Companies and Limited Liability Partnership firms
  • Debt Recovery Tribunal for individuals and partnerships

IBBI Regulation Forming Process

  • Transparent and consultative process to make regulations
  • Starts with a working group making draft regulations put in public domain seeking comments
  • Process culminates with the Governing Board of the IBBI finalising regulations and the IBBI notifies them.

- Published/Last Modified on: September 6, 2017

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