The document provides an overview of the Insolvency and Bankruptcy Code, 2016, focusing on core concepts such as insolvency, bankruptcy, and liquidation along with the process and implications of each. It discusses the historical context of insolvency laws in India, the need for reform, and the journey towards the enactment of the code, highlighting key changes and processes involved in corporate insolvency resolution and liquidation. A detailed description of the roles of various stakeholders, definitions, and the structure of the regulation is also included, emphasizing the significance of professional involvement and the importance of timely resolution.

1. Insolvency and Bankruptcy
Code, 2016
Disclaimer: This presentation is based on my internal research. It is notified that the presenter and any
other person related to him shall be not responsible for any damage or loss of any action taken based on
this presentation. It is suggested to seek professional advice before initiating any action.
A presentation by:
Saurabh Dugar
Company Secretary
Date: March 24, 2017
1

2. 2
BasicTerminologies

3. Insolvency, Bankruptcy and Liquidation
3
Insolvency:
a state in which financial
difficulties of a company
are such it is unable to run
its business at its current
pace.
Liquidation:
The process of
winding up a
company
Bankruptcy:
When a person is
legally declared as
incapable of paying
their dues and
obligations
 Insolvency precedes
bankruptcy and liquidation
follows bankruptcy.
 Insolvency warnings:
 drop in sales
 delay in payments
 Increasing reliance on credit
 Cash flow test:
 when cash flow in is less
than cash flow out .

4. Insolvency v/s Bankruptcy
4
 Black s law dictionary defines the following:
 Insolvency
 The condition of a person who is insolvent; inability to pay one s debts; lack of
means to pay one s debts. Such a relative condition of a man s assets and
liabilities that the former, if all made immediately available, would not be
sufficient to discharge the latter. Or the condition of a person who is unable to
pay his debts as they fall due, or in the usual course of trade and business.
 Bankruptcy
 The state or condition of one who is a bankrupt; amenability to the bankruptcy
laws; the condition of one who has committed an act of bankruptcy, and is
liable to be proceeded against by his creditors therefore, or of one whose
circumstances are such that he is entitled, on his voluntary application, to take
the benefit of the bankruptcy laws.

5. What lead to enactment of the Code?
5

6. Regime of Insolvency in India
6
 For individuals
 As old as a century
 The PresidencyTowns Insolvency Act, 1909
 The Provincial Insolvency Act, 1920
 this included insolvency as proprietors too
 For corporates
 The provisions of the 1956 Act were as old as 6 decades
 LLP Act, 2008 for closure of LLPs
 MSME Development Act, 2006 also registers a MSME but has no
framework for closure of MSMEs.

7. 7
 SARFAESI Act, 2002
 Enforcement of security interest without intervention of any authority.
 The stake of stakeholders other than the concerned creditor gets diluted.
 Recovery of debts due to Banks and Financial Institutions Act, 1993
 Grants special rights to unsecured creditors for recovery of defaulted debts.
 Sick Industries Companies (Special Provisions) Act, 1985
 Revival of sick companies
 Applicable to industrial companies only
 The moratorium provision under SICA was used by defaulters to keep
the creditors at bay.
 Other informal frameworks by RBI
Regime of Insolvency in India

8. Some statistics
8
Ease of doing business Rank 2017
12
10
4
8 7
12
9
13
22.7
18
0
5
10
15
20
25
Recovery Rate (in %)
88.6
78.6
88.7
82.8
87.4
15.8
38.6
26
36.9 35.1
0
10
20
30
40
50
60
70
80
90
100
Cost of liquidation (in %)
1.5 1.5
0.8
1
0.8
4
2
4.3
1.7
2.1
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Time taken for liquidation (in years)
7 8 2
15
22
123
40
130
78 74
0
20
40
60
80
100
120
140

9. Why Code was needed?
9

10. Journey of the Code
10

11. Bankruptcy Law Reform Committee
11
 Mandate of BLRC
 Setup by the Department of Economic Affairs, MoF, through office order dated August
22, 2014
 Chairman: Mr.T.K.Vishwanathan
 Objective of BLRC
 To study the framework of Corporate bankruptcy in India
 To submit a report to the government for reforming the system
 Reports
 Interim Report (February 2015)
 Served as an approach paper for the proposed new Code
 Reforms suggested for improving the insolvency regime in India
 Final Report (November 2015)
 Two parts:
 Volume I: Rationale and Design model of theCode
 Volume II: Draft Insolvency and Bankruptcy Code

12. Key changes under the Code
12
 Government dues take a backseat
 Fragmented status gets clubbed into one
 Scope of professionals like CS / CA / CWAs has been enhanced
 Individual bankruptcy gets included
 Financial creditors are voting at par as per their credit value
 Application under the Code can be made by financial creditor /
operational creditors / debtor himself
 But decision making is in the hands of financial creditors
 Decentralisation on the part of government

13. Key Highlights
13
 Resolution before Liquidation: If possible, the business should be revived before
liquidation
 Time bound process: Unlike previous practice, now the entire insolvency resolution
process shall complete in at max 270 days
 Information Utilities have been formed under the Code to provide timely
dissemination of information to the concerned
 Automatic liquidation if revival process does not complete within 180 or 270 days as
the case may be
 Creditors Voluntary winding up done away with
 Shareholders have no say during the process of revival as well as resolution
 Operational creditors with more than 10 percent aggregate exposure may participate
during the CoC meetings

14. When a entity does into red zone !!!
14

15. Creditors willingness
15
Options to
creditors
secured
creditors
unsecured
creditors
Individual
remedies
Collective
remedies
Enforcement of
security right
Monetary
claim
Resolution
Liquidation

16. Why collective remedies are better suited?
16
 Individual remedy put the debtor under serious stress.
 This does not allow the debtor to focus on business and bring it
back on track.
 Collective remedy ensures that business remains a going
concern.
 The objective of insolvency is to ensure that equitable
distribution takes place.
 Might is right might not always be right.

17. Structure of the Code
17

18. What all gets amended?
18
SCH AMENDMENTTO
I The Indian PartnershipAct, 1932
II The Central ExciseAct, 1944
III The Income –TaxAct, 1961
IV TheCustomsAct, 1962
V The Recovery of Debts Due to Banks and Financial InstitutionsAct, 1993
VI The FinanceAct, 1964
VII The Securitisation & Reconstruction of Financial Assets & EnforcementOf Security InterestAct, 2002
VIII The Sick IndustrialCompanies (Special Provisions) RepealAct, 2003
IX The Payment and SettlementSystemsAct, 2007
X The Limited Liability PartnershipAct, 2008
XI The CompaniesAct, 2013

19. Applicability of the Code
19
 Applies to whole of India
 Except for Part III [J&K excluded]
 Piecemeal commencement possible
 Persons covered
 Companies incorporated under the Companies Act, 2013
 Companies governed by any special Act, to the extent the provisions are
consistent with that Act;
 LLPs
 Any other body corporate, incorporated under any Act for the time being in
force, as the Central Government may specify
 Partnership firms
 Individuals
 Financial entities - Not covered

20. The Ecosystem of the Code
20
SC / NCLAT / NCLT
IBBI
IU IU
IPA - 1 IPA - 2
Certificate of Registration
Certificate of Registration to conduct business & enroll IPs
IP1 IP2 IP3 IP4 IP5
K Ltd. A LLP
XYZ
Ltd.
Q Ltd. M LLP
Enroll individual IP as a member
Registration
Committee of
Creditors
SC: Supreme Court, NCLAT: National Company Law Appellate Tribunal, NCLT: National Company Law Tribunal, IBBI: Insolvency and Bankruptcy
Board of India, IPA: Insolvency Professional Agency, IP: Insolvency Professional, IU: Information Utilities

21. How does one become Insolvency Professional?
21
The IBBI had notified Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 . Salient
features of the regulations are:
Insolvency
Professionals
Examination
 The Board shall conduct a National Insolvency Examination and Limited Insolvency Examination .
The syllabus, format and frequency of the Limited Insolvency Examination , including qualifying
marks, shall be published on the website of the Board at least one month before the examination.
Eligibility and
Qualification for
registration of
insolvency
professionals
(Reg 5)
 Any person resident of India who:
 has passed National insolvency examination; or
 has passed the Limited Insolvency Examination, and has 15 years of experience in management,
after graduation; or
 has passed the Limited Insolvency Examination and has ten 10 years of experience as a member
of ICAI; ICSI; ICAI (Cost) and Bar council
Application for
registration
 An individual enrolled with an insolvency professional agency may make application to IPA with
application fee of Rs 10,000
Registration for a
limited period
(Reg 9)
 an individual who has been in practice for 15 years as a CA, CS, CA (Cost), and advocate
 Valid for a period of 6 months
 This is notwithstanding Regulation 5 (i.e without exams)
Recognition of IP
Entities (Reg 12)
 LLP, partnership firm, or a company if:
 a majority of the partners of the LLP or partnership firm or a majority of whole time directors of
the company are registered as insolvency professionals.

22. Important terms under the Code
22

23. Some definitions (1/2)
23
Section Term Definition
2 (7) Corporate person • Company as defined in CA, 2013
• An LLP [As per LLP Act, 2008]
• Any other person incorporated with limited liability
under any law for the time being in force
• Excludes - Financial service provider
2(10) Creditor • Any person to whom debt is owed
• Financial or operational Creditor / Decree holder
2(11) Default • Non-payment of debt – whole/part/installment
2 (27) Property • Money, goods, actionable claims, every description of
property
• Within & outside India
• Includes interest [present/future/vested/contingent]
incidental to the property

24. Some definitions (2/2)
24
Section Term Definition
4(6) Dispute Includes a suit or arbitration proceedings
relating to—
• the existence of the amount of debt;
• the quality of goods or service; or
• the breach of a representation or warranty;
4(13) Insolvency
commencement date
• Date of admission of application for
Corporate Insolvency Resolution process by
NCLT
4(14) Insolvency resolution
process period
Period of 180 days beginning from the
insolvency commencement date and ending
on 180th day

25. Corporate Insolvency Resolution Process
25

26. CIRP
26
 Applicability –
 Minimum amount of default – Rs.1 lac
 CG may provide for higher minimum amount not beyond Rs. 1
Crore
 Who can initiate CIR process
 Financial creditor
 Operational creditor
 Corporate debtor itself

27. CIRP: Snapshot
27
 When can an application be filed?
 Occurrence of default
 Operational creditor to deliver 10 days demand notice to
corporate debtor
 After effects?
 NCLT either admits or rejects the application;
 If admitted, Corporate Insolvency Resolution commences and
the date of admission of application is called the insolvency
commencement date.

28. Who cannot apply?
28
 A corporate debtor who is already undergoing CIR
 A corporate debtor who has completed CIR 12 months preceding the
date of making of the application
 A corporate debtor or a financial creditor who has violated any of the
terms of a resolution plan - approved 12 months before the date of
making an application
 A corporate debtor in respect of whom a liquidation order has been
made

29. CIRP Process: Key points
29
 Sec 3(20), 3(21) - Operational Creditor includes employees, Central and State
Governments -Needs to give a 10-day notice to the debtor for repayment before taking
action
 Corporate Debtor - Defaulting company, its shareholder or management personnel can
start proceedings by making a application to the NCLT upon occurrence of any default
 Creditors in possession approach as against Debtors in possession approach
 Potentially creates risk the minority creditors being mooted out
 Threat of automatic liquidation can create strange results –May push the recoverable
companies into liquidation, thereby disrupting markets
 Suspended BoD or partners eligible to attend meetings of Committee of creditors, but
not eligible to vote

30. CIRP: In brief
30
Filing of
application to
NCLT
Admission of
application
0
3
Public
announcement
14
–ve 14
Appointment
of IRP and
declaration of
moratorium
Appoint 2
registered
valuers
Creditors to submit
their claims
7 21
IRP to verify
claims
23
Submission of
records to NCLT
30
First
Committee
of Creditors
meeting
44
Circulation of
Information
memorandum
150
Submission of
Resolution
Plan to RP
Approval of plan
by Committee of
creditors
Submission of
plan to NCLT
180
Acceptance /
Rejection of plan
by NCLT

31. CIRP: Phase I
31
Financial Creditor Operational Creditor Corporate Applicant
- Filing of application on occurrence
of default;
- Based on the information from IU,
other financial creditor may file an
application as well
- Deliver a default notice to the
corporate debtor on occurrence of
default
- Filing of occurrence of default
Alongwith the application, to furnish
record of default and propose name of
interim resolution professional.
Adequate reply Not adequate reply
Settlement of
dues
Dispute
Filing of application
Along with the application, to furnish
record of default and to propose
name of interim resolution
professional
To ascertain the existence of default, if satisfied, it shall accept, or otherwise reject
Suggest rectification
Re-apply
Proceed with Phase II
Prior to rejection Accept
Reject
Within 14 days
Within 7 days

32. CIRP: Phase II
32
The entire process shall be completed within Resolution Period (180 days; extendable by 90 days)
- Order of admission of
application by NCLT;
- Declaration of moratorium;
- Public announcement as per
the order of NCLT;
- Appointment of Interim
Resolution Process
- Interim resolution
Professional to appoint
committee of creditors
(financial creditors);
- First meeting of creditors;
- CoC may accept the IRP
appointed by NCLT or may
appoint a new RP;
- For any option, the NCLT is
required to be
communicated.
- RP to conduct the corporate
insolvency resolution process;
- As many number of CoC
meetings can be convened as
necessary;
- RP shall prepare Information
memorandum.
- RP to appoint Resolution
Applicant;
- RA to submit Resolution plan
basis the IM;
- RP to examine and approve the
Resolution Plan and submit to
CoC for approval.
- CoC to approve plan (75%) and
submit to NCLT;
- NCLT may accept / reject plan;
- Implementation of plan;
- Moratorium ceases here;
- RP to submit records to IU / IBBI
Liquidation If contravention on implementation of resolution plan
If plan rejected

33. Moratorium
33
 Moratorium - till the completion of the Corporate Interim Resolution process
institution of suits or continuation of pending suits or proceedings against the Corporate
Debtor
including execution of any judgment, decree or order in any court of law, tribunal, arbitration
panel or other authority
transferring, encumbering, alienating or disposing of any of its assets or any legal right or
beneficial interest
action to foreclose, recover or enforce any security interest created by the Corporate
Debtor in respect of its property
including any action under the SARFAESIAct, 2002
recovery of any property by an owner or lessor
 DURING MORATORIUM
 Public announcement is done for the creditors to give the claim
 Creditors appoint Resolution Professional
 Resolution Professional to prepare Information Memorandum -- based on this the
ResolutionApplicant will make the plan

34. CIRP initiation: Operational Creditor and Corporate
Debtor
34
 Documents to be furnished along with application –Operational Creditor
 To be furnished along with application
 a copy of the invoice demanding payment or demand notice delivered by the
Operational Creditor to the Corporate debtor
 an affidavit to the effect that there is no notice given by the corporate debtor relating
to a dispute of the unpaid operational debt
 a copy of the certificate from the financial institutions that there is no payment from
debtor
 Documents to be furnished along with application – Corporate debtor
 its books of account and such other documents relating to such period as may be specified;
and
 May propose name of Resolution Professional to act as Interim Resolution Professional

35. Liquidation of Corporate Person
35

36. Liquidation Process: Phase III
36
Trigger Event:
-CoC does not agree on RP
-CoC decides to liquidate
-NCLT rejects plan
-Debtors contravenes plan
RP should be appointed
as the liquidator by NCLT,
unless rejected by CoC.
Powers of BoD / Partners
vest with liquidators.
Liquidator to identify the
assets of the corporate
debtor and form
Liquidation Estate and
hold such estate as
fiduciary for the Creditors
Liquidator to collect
claims from creditors
within 30 days from
commencement of
liquidation
Liquidator to verify
claims of secured
creditors and discharge
the secured payments
Secured creditors to
identify assets offered to
them as security against
the sums owed to them
Liquidator to either
admit or reject claims and
communicate within 3
days of such admission or
rejection
Liquidator to verify such
claims within such time
as may be specified by
the Board (IBBI)
Excess money realized by
secured creditors from
the liquidation of secured
assets to be accounted
and remitted to
Liquidator)
Any short recovery of
secured debts by a
secured creditor to be
treated as unsecured
debt and repaid in the
specified order of priority
After paying off secured
creditors, the unsecured
debts are to be paid off in
specified order of priority
If all the assets of the
corporate debtor are
completely liquidated, the
liquidator shall apply for
dissolution of corporate
debtor before NCLT
NCLT to pass an order dissolving the
C.Dr. from the date of such order
Copy of order to be filed w RoC within
7 days from the date of such order
DISSOLVED

37. Liquidation Estate (Section 36)
37
Inclusions [Section 36(3)]
 Any assets over which the corporate debtor has
ownership rights
 Assets that may/ may not be in possession of the
corporate debtor, including encumbered assets
 Tangible assets (movable/ immovable)
 Intangible assets (such as IPs), securities, financial
instruments, insurance policies, contractual rights
 Assets subject to determination of ownership by
Courts
 Assets recovered through proceedings for avoidance
of transactions
 Asset in respect of which secured creditor has
relinquished security interest
 Any other property vested in the corporate debtor on
the insolvency commencement date
 All realization proceeds of liquidation
Exclusions [Section 36(4)]
 Assets in the possession of corporate debtor but
owned by third parties
 Assets in security collateral held by financial service
providers
 Personal assets of shareholder or partner of
corporate debtor
 Assets of subsidiaries (Indian/ foreign) of the
corporate debtor
 Any other assets as may be specified by the IBBI

38. Moratorium Again
38
 The company cannot transfer its assets
 Suits will be shifted to NCLT
 SARFAESI action by any secured creditor cannot be stayed
 The secured creditor will need to inform the liquidator and also
prove he is a secured creditor.
 A secured creditor also has the right to move separately and his
enforce security under SARFAESI Act or relinquish his security
right and become a part of the proceedings

39. Distribution of Assets
39
Insolvency Resolution and
Liquidation Cost
Secured Creditors +
Workmen s dues
Wages and unpaid dues
to employees
Unsecured Creditors
State Government and
Central Government
Any remaining debts or
dues
Preference
Shareholders
Equity Shareholders /
Partners
In case of liquidation,
the assets of the
corporate debtor will
be sold and the
proceeds will be
distributed amongst
the creditors in the
following order of
priority:
1. Government dues (including tax) rank
lower than the unsecured creditors and
wages as against the 1956 Act provisions,
where after secured creditors and workmen
dues, Government dues take preference on
liquidation payouts.
2. Ring-fenced priority for workers – Priority
being awarded to salaries up to 24 months
over all other creditors (including secured
creditors)

40. Remuneration of Liquidator
40
The Insolvency and bankruptcy (Liquidation) regulations 2016 specifies that remuneration of liquidator shall be
determined by the Committee of creditors. However where the committee does not determine the
remuneration, the Adjudicating Authority shall determine the remuneration of the Liquidator, which shall at
the maximum of the below table:

41. VoluntaryWinding Up
41
 Member s & Creditor s winding-up – distinction has been removed
 Code has no provision for creditors voluntary winding up
 Declaration from majority of the directors, verified by an affidavit stating that—
 Company has no debt or it will be able to pay its debts in full; and
 Company is not being liquidated to defraud any person
 Within four weeks of a declaration either:
 Special resolution at the general meeting; OR
 Ordinary resolution at the general meeting, as the case may be
 Creditors representing 2/3rd in value of the debt of the company shall
approve the winding up of the company
 Notify RoC & the Insolvency and Bankruptcy Board of India
 Voluntary liquidation process commences from date of passing of resolution

42. Certain transactions and its probe
42

43. Preferential transactions
43
 Transactions covered:
 transfer of property for benefit of a particular creditor;
 granting of a security interest to secure existing unsecured debts;
 Defence available:
 transaction as consistent with normal commercial practice
 ordinary course of business
 new credit & new value
 counterparty proves that it was unaware of a preference
 no knowledge of the debtor s insolvency
 Reach-back period
 Two years in case of related party transactions;
 One year in any other case.

44. Undervalued transactions
44
 Incase if the RP or the liquidator is of the view that
transactions referred in section 43 are undervalued:
 He shall make an application to NCLT to declare such transactions
as void and reversal of such transactions.
 What constitutes undervalued transaction ?
 Gift
 Significantly less value
and such transaction has not taken place in ordinary course
of business.

45. Application for undervalued transactions
45
 If the resolution professional or the liquidator does not report
undervalued transactions to NCLT:
 a member / partner or creditor may make an application for same.
 If NCLT is satisfied that:
 undervalued transaction has occurred, and
 RP or liquidator has not reported such transaction which he could have
then NCLT shall:
 restore the position by reversing such transaction;
 order IBBI to initiate disciplinary proceedings against RP or liquidator.

46. Extortionate credit transactions
46
 Where the corporate debtor has been a party to a extortionate
credit transaction:
 the RP or liquidator may make an application to NCLT for reversal of
such transaction wherein extremely high price is paid by the corporate
debtor.
 NCLT upon examination may:
 restore the position by reversing the transaction;
 set aside the whole part of the debt;
 modify the terms of transactions;
 order for repayment of such dues;
 Order for relinquishment of security interest.

47. Miscellaneous
47

48. Does Cross Border Insolvency gets addressed?
48
 Code has not adopted the UNCITRAL Model of cross border insolvency
 Currently 23 countries (including USA, UK, South Africa, Japan, Australia) have
substantially implemented the UNCITRAL Model Law into their domestic legislation
 Code for the first time attempts to addresses the issue of cross border insolvency
given the multi-jurisdictional spread of assets of large corporate houses
 Code stipulates a pronged solution:
 Section 234 – Central Government may enter into agreements with any other
country for enforcing the provisions of the Code and notify applicability of the
same from time to time
 Section 235 - Adjudicating Authority has the ability to issue letter of requests to
the courts / authorities of other countries for seeking information/ requesting
action in relation to assets of the debtor situated outside India

49. What overrides what?
49
 The Code shall have an over riding effect where other laws,
for the time being in force are inconsistent to this Code.
 It is specifically provided that civil courts or authority not
to have jurisdiction once an application is filed under this
code.
 All criminal suits to be tried at Special courts under section
435 of the Companies Act, 2013
 Provisions of Code of Criminal Procedure to apply.

50. Transfer of proceedings to NCLT
50

51. December 7 - MCA notifies theTPP Rules
51
 MCA vide Notification no. G.S.R. 1119(E) issued the Companies (Transfer
of Pending Proceedings) Rules, 2016 TPP Rules, 2016 , in exercise of
the powers conferred under section 431 (1) and (2) of the Companies Act,
2013 read with section 239 (1) of the Insolvency and Bankruptcy Code,
2016.
 The MCA has appointed two different dates on which the provisions of
theTPP Rules, 2016 shall come into force.
 December 15, 2016 – Entire TPP Rules, 2016 except Rule 4 shall come into force;
and
 April 1, 2017 – Rule 4 (which provides for pending proceedings relating to
voluntary winding up) shall come into force.

52. Winding up on inability to pay
52
 While the proceedings of winding up on the ground of inability to pay debts, if transferred to
NCLT, shall be dealt with in accordance with the provisions of the Code;
 On the other hand, winding up on grounds other than inability to pay debts, if transferred to
NCLT, shall be dealt with in accordance with the provisions of the Act, 2013.
Winding up on
grounds of inability
to pay debts
Pending as on
December 15, 2016
before HC?
New application under
the Code, 2016
Petition served
under Rule 26 of
Company Court
Rules/
Remains with High
Court under 1956 Act
Yes
Yes
No
Transfer to NCLT
under the Code
No

53. VoluntaryWinding Up
53
Voluntary Winding up
Remains with High Court
under 1956 Act
Pending as on April 1,
2017 before High Court
New Application under
the section 59 of the
Code
Yes
No

54. Proceedings under SICA, 1985
54
Stages of proceedings
under SICA
Reference to BIFR / Appeal
to AAIFR
Scheme of revival
sanctioned
BIFR suggests winding up
Pending as on 1st
December, 2016
Abatement of proceedings
Fresh Application to NCLT
/ NCLAT under Code, 2016
Yes
NCLT / NCLAT under
Code, 2016
No No change
Initiated on or before 15th
December, 2016
Any appeals
Remains with High Court
under 1956 Act
Yes
No
NCLT under the Code 2016
No
Yes

55. Litmus test of the Code
55

56. Needs attention
56
 Debtors management
 Adequacy of information
 Extent to which information can be seeked
 Involvement of operational creditors
 Level playing field
 Being disenfranchised
 Conflict of interest
 Equal treatment
 Financial creditor
 Will financial creditors really want to move?
 Connection between financial creditors and corporate debtor
 Turbulent times ahead

57. Needs attention (Continued)
57
 Process
 favour to creditors
 game of financial creditors has not necessitated level playing field
 ouster of directors, members
 principle of natural justice
 Borrowed from United Kingdom
 similar process
 though have resulted in higher realization, the corresponding increase
in bankruptcy cost has lead to only marginal growth of recoveries
 antitrust concerns due to creditor-resolution professional nexus.

58. Needs attention (Continued)
58
 Boost to MSMEs?
 will it really happen as operational creditors have greater skin as
compared to erstwhile law?
 Are 180 / 270 days sufficient?
 May lead to disharmony for stakeholders in the longer run?
 Resolution applicant:
 Financial creditor being resolution applicant;
 Number of resolution plans;
 Content of resolution plan
 Infrastructural environment
 Capacity Building

59. The litmus test of the success of the Code
will be on how these technical issues are
being dealt and how it is implemented.
59

60. 60
Insolvency and
Bankruptcy Code,
2016
A presentation by:
Saurabh Dugar
Email: cs.saurabhdugar@gmail.com
Mobile: +91-9867110199