INSOLVENCY BANKRUPTCY CODE

1. INSOLVENCY
AND
BANKRUPTCY
CODE, 2016: An
Overview

2. BACKGROUND
Several statutory instruments having different
process of debt restructuring and asset seizure
and its realization to satisfy the outstanding
debts
Multiplicity of laws – led to immense confusion
– causing failure of banks to recover loans
Causing inadequate and ineffective results with
undue delay
Piling up of NPA and creditors waiting for years
to recover their money

3. INSOLVENCY AND
BANKRUPTCY CODE, 2016
 An effort to consolidate existing laws
relating to insolvency of corporate entities
and individuals.
To provide a single legislation
Common forum for debtors and creditors of
all classes to resolve insolvency
Facilitate in resolving the insolvency in a
time bound manner

4. INSOLVENCY RESOLUTION
INDIVIDUALS AND
PARTNERSHIP
FIRMS
COMPANIES AND
LIMITED
LIABILITY
PARTNERSHIP
FIRMS

5. FIVE PILLARS OF THE CODE
INSOLVENCY AND
BANKRUPTCY
BOARD OF INDIA
(IBBI)
INSOLVENCY
PROFESSIONAL
AGENCIES (IPA)
INFORMATION
UTILITIES (IU)
INSOLVENCY
PROFESSIONAL (IP)
ADJUDICATING AUTHORITIES

NCLT (NATIONAL
COMPANY LAW
TRIBUNAL)
DRT (DEBT RECOVERY
TRIBUNAL)

6. RESOLUTION
PROCESS

7. COMPANIES
FAST TRACK PROCESS (Exclusively for Small Companies,
Start-ups and unlisted companies – time limit for completion
is 90 days)
CIRP (Corporate Insolvency Resolution Process) –may be
initiated by creditors or debtor- application to NCLT-
resolution professional constitutes committee (coc)of creditors
for approval of repayment plan- submitted to NCLT for final
order.
LIQUIDATION- if NCLT rejects the plan or – on the expiry of
maximum period for completion of IRP or- coc decides for
liquidation

8. INDIVIDUAL
FRESH START PROCESS (For individuals who fall
below certain asset and income based thresholds)
IRP (INSOLVENCY RESOLUTION PROCESS) –
Preparation of repayment plan by the debtors with the
help of resolution professional – seek approval of
creditors – if approved by DRT – passes an order
binding on both creditors and debtors
BANKRUPTCY ORDER- If repayment plan is rejected
or fails – may apply for bankruptcy order.

9. THANK YOU
SUBMITTEDBY-
RICHACHAUHAN