The Insolvency and Bankruptcy Code 2016 (IBC), was introduced in India to bring all the matters relating to insolvency, liquidation, voluntary liquidation or bankruptcy of companies, LLPs, partnership firms and individuals under a single legislation.
The code repeals the Presidency Town Insolvency Act 1909, the Provincial Insolvency Act, 1920 and Sick Industrial Companies (Special Provisions) Act, 1985. It also amends various laws including Indian Partnership Act, 1932, Central Excise Act, 1944, Companies Act, 2013, Limited Liability Partnership Act 2008, etc. The code also provides for establishment of the Insolvency and Bankruptcy Board of India by the Central Government. The board manages the registration of insolvency professionals.
The code consists of 5 main parts:
I. Preliminary
II. Insolvency Resolution and Liquidation for Corporate Persons
III. Insolvency Resolution and Bankruptcy for Individuals and Partnership Firms
IV. Regulation of Insolvency Professionals, Insolvency Professional agencies and Information Utilities
V. Miscellaneous
When a Corporate debtor commits a default, a Financial Creditor, an Operational Creditor or the debtor itself may start Corporate Insolvency Resolution Process (CIRP). The CIRP has to be completed within 180 days from the date of admission of the application by NCLT. The NCLT will appoint an Interim Resolution Professional, within 14 days from the insolvency commencement date. His appointment is not for more than 30 days. The interim Resolution Professional will determine the financial position of the debtor. He will also collate all the claims submitted to him by the creditors and constitute a creditors committee. The first meeting of Committee of Creditors (CoC) will take place within 7 days of its constitution. The Committee of Creditors will appoint a Resolution Professional who may be Interim Resolution Professional also.
This story is from the December 2019 edition of BANKING FINANCE.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the December 2019 edition of BANKING FINANCE.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
The Rise Of Green Marketing: Driving Sustainable Change
Green marketing refers to the practice of promoting products or services that are environmentally friendly or sustainable. It involves incorporating eco-friendly elements into various aspects of marketing strategies, including product development, packaging, advertising, and distribution.
ICICI Bank partners with PhonePe to offer instant credit on UPI
ICICI Bank announced that it has partnered with PhonePe to offer instant credit on UPI to its pre-approved customers on the app of the digital payments company.
Indiagold Eyes Major Expansion in India's Gold Loan Market
Indiagold, a prominent fintech company specialising in gold loans, is set to disrupt the gold loan industry with its ambitious expansion plans and innovative product offerings.
RBI CIRCULAR
Facilitating accessibility to digital payment systems for Persons with Disabilities Guidelines
Legal News
The Supreme Court announced the launch of a new webpage on its official website providing summaries of landmark judgments.
The Role and Impact of the Insolvency and Bankruptcy Code (IBC) in NPA Recovery
Indian banks, especially grappling with the mounting challenge of Non-Performing Assets (NPAs) within Scheduled Commercial Banks (SCBs), are experiencing a significant downturn in their capacity for credit recycling, resulting in reduced business opportunities and declining profits. However, various factors contributing to the severity of NPA problem are including macro-economic, political, and internal factors, emphasizing the complexity of the issue. With this background, the present study puts an effort to look at the role of the Insolvency and Bankruptcy Code (IBC) in NPA recovery and also showcasing its significance in resolving insolvency and maximizing creditor recovery.
Big Data in Banking: Analysing its Role, Advantages and Challenges
Globally Inflation started rising post April 2021 and went above the target range set by most of the Central Banks. It had remained low and dormant for a substantial duration since the global financial crisis. CPI inflation in developed countries such as US, UK and Euro zone, began to exceed their traditional target of 2% and continue to stay at these elevated levels till recent time.
Is SIP Always the Best Option? A Look into Lump-Sum vs SIP During Volatile Markets
SIP is a method of investing a fixed amount at regular intervals, typically monthly, into a mutual fund. It allows investors to buy more units when prices are low and fewer when prices are high, a process known as rupee cost averaging.
Strategies for Mutual Fund Retail Investors during market downturns
When stock markets experience a decline, mutual fund investors often face a sense of insecurity and apprehension. The volatility can lead to impulsive decisions, which, rather than securing financial health, may impair long-term investment objectives.
Fraud Risk Management In Banking
Fraud risk management is a fundamental aspect of overall Risk Management within the banking sector. In India, banks adhere strictly to guidelines set forth by the Reserve Bank of India (RBI) to prevent, detect, and promptly report fraudulent activities.
