Insolvency & Bankruptcy Code 2016 in India

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Insolvency and Bankruptcy Code 2016
Presented By Resgitrationwala
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What is Insolvency and Bankruptcy Code (IBC) 2016

• IBC refers to Insolvency and Bankruptcy Code
  2016.
• This code is associated with the rules to resolve
  insolvency and bankruptcy.
• This code is specified in the Companies
  Act(Amendment) 2016.

Registrationwala
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Purpose of Insolvency and Bankruptcy Code (IBC)
2016

• To establish Insolvency and Bankruptcy Board of
  India
• To upgrade certain rules associated with
  Insolvency and Bankruptcy
• To removes outdated rules associated with
  Insolvency and Bankruptcy
• To maximize the availability of credit in the
  market
• To aid emerging entrepreneurs
• To establish rules for the Insolvency
  Professionals
• To establish rules for institutes that provides
  insolvency professionals.
• To establish proper adjudicating authorities

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Features of Insolvency and Bankruptcy Code (IBC)
2016

• Different tribunals for different type of
  debtors/creditors for insolvency resolution
• For individual debtors/creditors Debt Recovery
  Tribunal
• For Corporate debtors/creditors National Company
  Law tribunal
• Insolvency regulatory body is IBB
• Insolvency adjudicating bodies are NCLT and DRT
• Insolvency resolution process can be initiated by
  creditors or the debtors

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Need of Insolvency and Bankruptcy Code 2016

• Previous insolvency and bankruptcy regime was way
  too distributed.
• Conflict in claims are prevalent.
• Access to credible financial data is limited.
• The workers are needed to be protected.
• Need to free the locked up assets.

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Process of Insolvency Resolution

• Default payment.
• Application filed with NCLT or DRT.
• Appointment of an insolvency professional.
• Formation of committee of creditors.
• Information memorandum is prepared by the
  Insolvency professional.
• Creditor prepares a resolution plan.
• Committee of creditors approve of the insolvency
  resolution plan.
• The plan can either be resolution or liquidation.

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