The Insolvency and Bankruptcy Code, 2016 ( IBC ) is an Indian bankruptcy law that seeks to consolidate the existing framework by creating a single law for bankruptcy and bankruptcy. The Insolvency and Bankruptcy Code, 2015 was introduced at Lok Sabha in December 2015. It was authorized by Lok Sabha on May 5, 2016. This code received approval from the President of India on May 28, 2016. Certain provisions of the Act have come into force on the date 5 August to 19 August 2016. The bankruptcy code is a one-stop solution to resolve bankruptcy issues that are currently a long process and offer no economical arrangement. A strong insolvency framework in which cost and time spent minimized in achieving liquidation has long been delayed in India. This code will be able to protect the interests of small investors and make the process of doing business a process that is not practical.
Video Insolvency and Bankruptcy Code, 2016
Histori
The Insolvency and Bankruptcy Code, 2015 was introduced at Lok Sabha on 21 December 2015 by the Minister of Finance, Arun Jaitley under Modi government. The Code of Ethics is referred to the Joint Committee of Parliament on December 23, 2015, and recommended by the Committee on 28 April 2016. The Code of Conduct was adopted by Lok Sabha on 5 May 2016 and by Rajya Sabha on May 11, 2016. This Code of Ethics was accepted by President Pranab Mukherjee May 28, and was notified on The Gazette of India on May 28, 2016.
This code was adopted by parliament in May 2016 and became effective in December 2016. It aims to revoke the Municipal Municipal Bankruptcy Act, 1909 and the Industrial Patient Company (Special Provisions) Revocation Act, 2003, among others.
The first insolvency resolution command under this code was authorized by the National Company Law Tribunal (NCLT) in the case of Synergies-Dooray Automotive Ltd on 14 August 2017 and a second resolution plan was filed in the case of Prowess International Private Limited, represented by Advocate Akhilesh Kumar Shrivastava and Akash Sharma. Applications for bankruptcy are submitted by the company on January 23, 2017. The resolution plan has been submitted to NCLT within a period of 180 days as required by the code, and approval for the same has been received on 2 August 2017 from the court. Last order uploaded on August 14, 2017 on NCLT website.
Maps Insolvency and Bankruptcy Code, 2016
Key Features
Insolvency Resolution Ã,: This code describes a separate bankruptcy settlement process for individual, company and partner companies. The process can be initiated by the debtor or creditor. The maximum deadline, for completion of the insolvency resolution process, has been established for companies and individuals. For the company, the process must be completed within 180 days, which can be extended to 90 days, if the majority of creditors agree. To start (other than a partnership company), small companies and other companies (with assets less than Rs 1 crore), the completion process will be completed within 90 days from the beginning of the request which can be extended to 45 days.
Omission Manager : This code sets the Insolvency and Bankruptcy Board of India, to oversee the bankruptcy process in the country and regulate the entity listed below it. The Council will have 10 members, including representatives from the Ministry of Finance and Law, and Reserve Bank of India.
Insolvency professionals : The insolvency process will be managed by a licensed professional. These professionals will also control the assets of the debtor during the bankruptcy process.
Bankruptcy and Insolvency Adjudicator : This Code proposes two separate courts to oversee the insolvency resolution process, for individuals and companies: (i) the National Enterprise Law Courts for the Company and Limited Liability Companies; and (ii) Debt Recovery Courts for individuals and partnerships.
Procedures
The bankruptcy application is submitted to the court authority (NCLT in the case of a corporate debtor) by the financial creditor or the operations or the debtor of the company itself. Maximum time allowed to accept or reject the application is 14 days. If the application is accepted, the tribunal shall appoint an Insolvency Resolution Professional (IRP) to draw up a settlement plan within 180 days (may be extended to 90 days). following the process of Corporate Bankruptcy Resolution initiated by the court. For that period, the company's board of directors stand suspended, and the promoters have no say in the management of the company. IRP, if required, can seek the support of the company's management for day-to-day operations. if CIRP fails to revive the company, the liquidation process begins.
Amendments
This code was changed in 2017 to prohibit certain persons from submitting a settlement plan in case of default, and to prohibit the sale of property from defaulters to such persons during the liquidation
High-value case
Reserve Bank of India (RBI) is called following a large Non-Performing (NPA) asset for resolution to NCLT:
References
External links
- Insolvency and Bankruptcy Code, 2016
- Rules and Rules
- Official website for Bankruptcy and Bankruptcy India (IBBI)
Source of the article : Wikipedia
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