I prepared this ppt on Insolvency and Bankruptcy Code, 2016 to give a brief overview of it. This Code has repealed various Acts and made the insolvency procedure easier.
Corporate Insolvency Process- Insolvency and Bankruptcy Code, 2016INDIA CS
The document provides an overview of the key aspects of the Insolvency and Bankruptcy Code of India. It discusses who can file for insolvency, the process for filing by a financial creditor, the roles of the interim and final resolution professionals, the constitution of the committee of creditors, approval of a resolution plan, and liquidation if the plan is rejected. The code aims to facilitate a time-bound insolvency resolution process and improve ease of doing business in India through a consolidated framework.
Insolvency and Bankruptcy Code, 2015 - Sandeep Jhunjhunwala FCASandeep Jhunjhunwala
The document summarizes the key features of the Insolvency and Bankruptcy Code of India. It discusses how the Code establishes standardized processes for insolvency resolution and liquidation of corporate entities and individuals. The Code sets strict timelines for insolvency resolution proceedings, provides for replacement of existing management with resolution professionals, and establishes penalties for asset stripping by promoters prior to liquidation. It aims to create a consolidated framework for resolving insolvency issues in a time-bound and predictable manner.
This document provides an overview of the Insolvency and Bankruptcy Code 2016 in India. It defines key terms like insolvency, bankruptcy, financial creditor and operational creditor. It outlines the objectives of the code to have a uniform law and faster resolution process. It describes the insolvency resolution process for companies/LLPs which includes a moratorium, creditors committee and resolution plan within 180 days. If this fails, the process is liquidation. It also describes the process for individuals/partnerships. The code sets up institutions like the Insolvency and Bankruptcy Board, NCLT and Resolution Professionals to handle insolvency cases. It impacts other existing laws dealing with insolvency
Decoding THE INSOLVENCY AND BANKRUPTCY CODE, 2016Amit Kumar
The document summarizes the key aspects of the Insolvency and Bankruptcy Code, 2016 in India. It discusses the need for reform of bankruptcy laws in India due to the complex existing framework and long resolution times. The Code aims to consolidate bankruptcy laws, introduce a time-bound resolution process, and establish new regulatory bodies to handle insolvency resolution and liquidation. It outlines the key elements of the corporate insolvency resolution process established by the Code.
The Insolvency and Bankruptcy Code 2016 - A Step ForwardSumedha Fiscal
The new bankruptcy law isn’t a “magic wand”. The main
challenge will be implementation-adequacy of infrastructure
and skilled pool of insolvency professionals, who will help
with the fast implementation of the law.
CII-Sumedha Fiscal has come out with this knowledge paper
with the objective to touch upon the key aspects of the Code
and lay bare the issues and challenges.
The document discusses the Insolvency and Bankruptcy Code of India. It provides definitions for key terms like insolvency, bankruptcy, and liquidation. It explains that the code establishes a time-bound resolution process for both corporate and individual entities that are unable to pay debts. The code aims to help creditors recover debts more effectively and replace the existing framework that had led to high amounts of pending bankruptcy cases. It overhauls the existing insolvency laws and consolidates them into a single code to provide a uniform and comprehensive law for insolvency and bankruptcy.
Corporate Insolvency Process- Insolvency and Bankruptcy Code, 2016INDIA CS
The document provides an overview of the key aspects of the Insolvency and Bankruptcy Code of India. It discusses who can file for insolvency, the process for filing by a financial creditor, the roles of the interim and final resolution professionals, the constitution of the committee of creditors, approval of a resolution plan, and liquidation if the plan is rejected. The code aims to facilitate a time-bound insolvency resolution process and improve ease of doing business in India through a consolidated framework.
Insolvency and Bankruptcy Code, 2015 - Sandeep Jhunjhunwala FCASandeep Jhunjhunwala
The document summarizes the key features of the Insolvency and Bankruptcy Code of India. It discusses how the Code establishes standardized processes for insolvency resolution and liquidation of corporate entities and individuals. The Code sets strict timelines for insolvency resolution proceedings, provides for replacement of existing management with resolution professionals, and establishes penalties for asset stripping by promoters prior to liquidation. It aims to create a consolidated framework for resolving insolvency issues in a time-bound and predictable manner.
This document provides an overview of the Insolvency and Bankruptcy Code 2016 in India. It defines key terms like insolvency, bankruptcy, financial creditor and operational creditor. It outlines the objectives of the code to have a uniform law and faster resolution process. It describes the insolvency resolution process for companies/LLPs which includes a moratorium, creditors committee and resolution plan within 180 days. If this fails, the process is liquidation. It also describes the process for individuals/partnerships. The code sets up institutions like the Insolvency and Bankruptcy Board, NCLT and Resolution Professionals to handle insolvency cases. It impacts other existing laws dealing with insolvency
Decoding THE INSOLVENCY AND BANKRUPTCY CODE, 2016Amit Kumar
The document summarizes the key aspects of the Insolvency and Bankruptcy Code, 2016 in India. It discusses the need for reform of bankruptcy laws in India due to the complex existing framework and long resolution times. The Code aims to consolidate bankruptcy laws, introduce a time-bound resolution process, and establish new regulatory bodies to handle insolvency resolution and liquidation. It outlines the key elements of the corporate insolvency resolution process established by the Code.
The Insolvency and Bankruptcy Code 2016 - A Step ForwardSumedha Fiscal
The new bankruptcy law isn’t a “magic wand”. The main
challenge will be implementation-adequacy of infrastructure
and skilled pool of insolvency professionals, who will help
with the fast implementation of the law.
CII-Sumedha Fiscal has come out with this knowledge paper
with the objective to touch upon the key aspects of the Code
and lay bare the issues and challenges.
The document discusses the Insolvency and Bankruptcy Code of India. It provides definitions for key terms like insolvency, bankruptcy, and liquidation. It explains that the code establishes a time-bound resolution process for both corporate and individual entities that are unable to pay debts. The code aims to help creditors recover debts more effectively and replace the existing framework that had led to high amounts of pending bankruptcy cases. It overhauls the existing insolvency laws and consolidates them into a single code to provide a uniform and comprehensive law for insolvency and bankruptcy.
The Indian Space Research Organization conducted a successful maiden test flight of its Reusable Launch Vehicle Technology Demonstrator (RLV-TD) at Sriharikota, marking India's entry into the race to develop reusable space vehicles. The RLV-TD flight test was a "baby step" towards developing a fully reusable space launch vehicle. ISRO had sidelined its RLV program in recent years while focusing on other projects, but has renewed interest due to private companies like SpaceX developing reusable rockets. The successful test positions ISRO to compete with SpaceX and Blue Origin in developing low-cost reusable launch technologies. The RLV-TD is the first step towards India's Two Stage To Orbit reusable spaceplane.
This document provides an overview of the Insolvency and Bankruptcy Code 2016 presented by Sandeep Jhunjhunwala at a conference on December 16, 2016. It discusses key aspects of the code including consolidating existing insolvency laws, establishing time-bound resolution processes, and creating a new insolvency infrastructure led by the Insolvency and Bankruptcy Board of India, Insolvency Professionals, and Adjudicating Authorities.
The document discusses the Insolvency and Bankruptcy Code 2016 passed in India. It provides an overview of the presentation, outlines why the new code was needed due to issues with existing bankruptcy laws, and summarizes some key features of the new code including provisions for insolvency resolution of corporate and non-corporate debtors and liquidation processes.
Note on the Insolvency and Bankruptcy Code, 2016Shaun Menon
The document provides an overview of the Insolvency and Bankruptcy Code of 2016 in India. Some key points:
1) The Code was enacted to address shortcomings in existing insolvency laws and consolidate them under one law, aiming to resolve insolvency issues faster than previous average of 4.3 years in India.
2) It outlines the stage-wise corporate insolvency resolution process which must be concluded within 180 days and includes steps like appointing a resolution professional, forming a creditors committee, and developing a resolution plan or initiating liquidation.
3) If a resolution plan is not approved, the company enters liquidation where the resolution professional acts as liquidator to realize assets and distribute
Insolvency and Bankruptcy Code 2016-Jurisdiction to NCLTVaish Associates
This document provides an overview of the Insolvency and Bankruptcy Code of 2016 in India. It discusses why the code was needed due to rising non-performing assets in the banking industry and large backlogs of bankruptcy cases. The presentation covers key aspects of the code including its scope, structure, processes for corporate insolvency resolution and liquidation, treatment of cross-border insolvency cases, and its impact on repealing or amending previous insolvency laws. The Insolvency and Bankruptcy Code aims to provide a time-bound resolution mechanism for both corporate and individual bankruptcy and insolvency proceedings in India.
As you may be aware that a new Insolvency and Bankruptcy Code ,2016 has been enacted.
It provides “RESOLUTION OF DEFAULT” in payment to lenders very fast process to settle the matter in 180 days.
The Government as well as RBI are pressing hard to lending Banks to settle their dues through this code.
The lending banks have already started issuing Notice to borrowers to take action to settle their defaulted Accounts.
Under this code Registered Insolvency Professionals (IP) have a pivotal role to Resolve the defaulted Loan.
We are a group of professionals and One of our founder director (Advocate Ashok Juneja) is also Registered as Insolvency Professioal (IP) with Insolvency and Bankruptcy Board of India as Insolvency Professional (IBBI)
Attached is PP on new code.
You are free to contact us if you have any query/ clarification
The Insolvency and Bankruptcy Code 2015 Mukesh Chand
The document discusses the history of bankruptcy reforms in India through various committees since 1964 and outlines the key issues with the current framework. It proposes the objectives, principles and features of the new Insolvency and Bankruptcy Code of India. The Code aims to provide for a time-bound resolution process, maximize asset value, balance liquidation and reorganization, ensure equitable treatment of creditors, and establish a transparent framework. It will be based on principles of viability being a business decision, control by legislature/courts over process but not decisions, and appointment of resolution professionals.
Interpreting Insolvency and Bankruptcy Code, 2016Amrita Lala
The document provides an overview of the Insolvency and Bankruptcy Code of 2016 in India. It discusses the key reasons for introducing the code, including reducing time to resolve insolvency, developing investor confidence, and addressing non-performing assets. The code aims to create a single framework for insolvency and bankruptcy proceedings. It allows for insolvency resolution and bankruptcy procedures for both corporate entities and individuals/partnership firms. The document outlines the structure and various parts of the code, as well as the roles and responsibilities of different authorities and professionals involved in insolvency resolution processes under the code.
This document provides an overview of the history of insolvency and bankruptcy laws in India prior to the enactment of the Insolvency and Bankruptcy Code (IBC) in 2016. It discusses various laws introduced over the decades to deal with corporate insolvency and bankruptcy such as the Sick Industrial Companies Act (SICA) of 1985, Recovery of Debts Due to Banks and Financial Institutions Act (RDDBI) of 1993, and Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) of 2002. However, these laws had various limitations. The IBC was introduced in 2016 to provide a comprehensive insolvency and bankruptcy framework and establish the In
The document summarizes India's Insolvency and Bankruptcy Code of 2016. It consolidates previous bankruptcy laws into a single code and establishes mechanisms for insolvency resolution, regulation, and adjudication. The code aims to promote business and availability of credit. It outlines procedures for insolvency resolution and liquidation of corporate entities. If resolution fails, assets are liquidated according to the order of priority of payments to secured creditors, wages, financial and unsecured debts. The code establishes a new framework for addressing insolvency and bankruptcy in India.
The document discusses key aspects of India's Insolvency and Bankruptcy Code of 2016, including definitions of insolvency and bankruptcy, the laws that previously governed these areas, reasons for introducing the new code, and key parties and processes involved. It also summarizes critiques of the code and amendments made in 2017 to strengthen its provisions.
The document provides definitions for key terms used in the Insolvency and Bankruptcy Code of India. It defines terms related to insolvency resolution, liquidation, and bankruptcy for corporate entities, partnership firms, and individuals. Some key terms defined include "corporate debtor", "creditor", "debt", "default", "financial creditor", "operational creditor", "insolvency professional", and "secured creditor". The definitions section aims to provide clarity on the meaning of important concepts and entities referenced in the Insolvency and Bankruptcy Code.
The Insolvency and Bankruptcy Code, 2016 (Code) came into operation w.e.f 28th May, 2016.
It seeks to consolidate the existing framework by by creating a single law for Insolvency and Bankruptcy.
Insolvency is when an individual, corporation, or other organization cannot meet its financial obligations for paying debts as they are due.
Insolvency can occur when certain things happen, some of which may include: poor cash management, increase in cash expenses, or decrease in cash flow.
Liquidation process under the Insolvency and Bankruptcy Code, 2016Alok Saksena
The document discusses the liquidation process under the Insolvency and Bankruptcy Code of India. It explains that a liquidation order will be passed if the corporate insolvency resolution process fails or the approved resolution plan is not implemented. Upon a liquidation order, the company enters liquidation, all employees are terminated except where the business is continued, and legal proceedings against the company are barred. The liquidator is appointed to manage the seven step liquidation process, which includes verifying claims, selling assets, and distributing the proceeds in a specified order to settle debts and dissolve the company within two years.
This presentation gives an overview of the laws and regulations regarding insolvency, liquidation and winding up in Nepal
PLEASE HIT LIKE IF IT'S HELPFUL! :D
The Insolvency and Bankruptcy Code of 2016 consolidated existing bankruptcy laws in India to create a single law governing insolvency and bankruptcy. It aims to simplify and expedite bankruptcy proceedings while protecting creditor interests. Under the Code, a corporate insolvency resolution process is initiated when financial creditors with claims over Rs. 1 crore file an application with the National Company Law Tribunal. If no resolution plan is approved within 180 days, the company enters liquidation. The Code established the Insolvency and Bankruptcy Board of India as the regulator and introduced insolvency professionals to manage proceedings.
The Indian Space Research Organization conducted a successful maiden test flight of its Reusable Launch Vehicle Technology Demonstrator (RLV-TD) at Sriharikota, marking India's entry into the race to develop reusable space vehicles. The RLV-TD flight test was a "baby step" towards developing a fully reusable space launch vehicle. ISRO had sidelined its RLV program in recent years while focusing on other projects, but has renewed interest due to private companies like SpaceX developing reusable rockets. The successful test positions ISRO to compete with SpaceX and Blue Origin in developing low-cost reusable launch technologies. The RLV-TD is the first step towards India's Two Stage To Orbit reusable spaceplane.
This document provides an overview of the Insolvency and Bankruptcy Code 2016 presented by Sandeep Jhunjhunwala at a conference on December 16, 2016. It discusses key aspects of the code including consolidating existing insolvency laws, establishing time-bound resolution processes, and creating a new insolvency infrastructure led by the Insolvency and Bankruptcy Board of India, Insolvency Professionals, and Adjudicating Authorities.
The document discusses the Insolvency and Bankruptcy Code 2016 passed in India. It provides an overview of the presentation, outlines why the new code was needed due to issues with existing bankruptcy laws, and summarizes some key features of the new code including provisions for insolvency resolution of corporate and non-corporate debtors and liquidation processes.
Note on the Insolvency and Bankruptcy Code, 2016Shaun Menon
The document provides an overview of the Insolvency and Bankruptcy Code of 2016 in India. Some key points:
1) The Code was enacted to address shortcomings in existing insolvency laws and consolidate them under one law, aiming to resolve insolvency issues faster than previous average of 4.3 years in India.
2) It outlines the stage-wise corporate insolvency resolution process which must be concluded within 180 days and includes steps like appointing a resolution professional, forming a creditors committee, and developing a resolution plan or initiating liquidation.
3) If a resolution plan is not approved, the company enters liquidation where the resolution professional acts as liquidator to realize assets and distribute
Insolvency and Bankruptcy Code 2016-Jurisdiction to NCLTVaish Associates
This document provides an overview of the Insolvency and Bankruptcy Code of 2016 in India. It discusses why the code was needed due to rising non-performing assets in the banking industry and large backlogs of bankruptcy cases. The presentation covers key aspects of the code including its scope, structure, processes for corporate insolvency resolution and liquidation, treatment of cross-border insolvency cases, and its impact on repealing or amending previous insolvency laws. The Insolvency and Bankruptcy Code aims to provide a time-bound resolution mechanism for both corporate and individual bankruptcy and insolvency proceedings in India.
As you may be aware that a new Insolvency and Bankruptcy Code ,2016 has been enacted.
It provides “RESOLUTION OF DEFAULT” in payment to lenders very fast process to settle the matter in 180 days.
The Government as well as RBI are pressing hard to lending Banks to settle their dues through this code.
The lending banks have already started issuing Notice to borrowers to take action to settle their defaulted Accounts.
Under this code Registered Insolvency Professionals (IP) have a pivotal role to Resolve the defaulted Loan.
We are a group of professionals and One of our founder director (Advocate Ashok Juneja) is also Registered as Insolvency Professioal (IP) with Insolvency and Bankruptcy Board of India as Insolvency Professional (IBBI)
Attached is PP on new code.
You are free to contact us if you have any query/ clarification
The Insolvency and Bankruptcy Code 2015 Mukesh Chand
The document discusses the history of bankruptcy reforms in India through various committees since 1964 and outlines the key issues with the current framework. It proposes the objectives, principles and features of the new Insolvency and Bankruptcy Code of India. The Code aims to provide for a time-bound resolution process, maximize asset value, balance liquidation and reorganization, ensure equitable treatment of creditors, and establish a transparent framework. It will be based on principles of viability being a business decision, control by legislature/courts over process but not decisions, and appointment of resolution professionals.
Interpreting Insolvency and Bankruptcy Code, 2016Amrita Lala
The document provides an overview of the Insolvency and Bankruptcy Code of 2016 in India. It discusses the key reasons for introducing the code, including reducing time to resolve insolvency, developing investor confidence, and addressing non-performing assets. The code aims to create a single framework for insolvency and bankruptcy proceedings. It allows for insolvency resolution and bankruptcy procedures for both corporate entities and individuals/partnership firms. The document outlines the structure and various parts of the code, as well as the roles and responsibilities of different authorities and professionals involved in insolvency resolution processes under the code.
This document provides an overview of the history of insolvency and bankruptcy laws in India prior to the enactment of the Insolvency and Bankruptcy Code (IBC) in 2016. It discusses various laws introduced over the decades to deal with corporate insolvency and bankruptcy such as the Sick Industrial Companies Act (SICA) of 1985, Recovery of Debts Due to Banks and Financial Institutions Act (RDDBI) of 1993, and Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) of 2002. However, these laws had various limitations. The IBC was introduced in 2016 to provide a comprehensive insolvency and bankruptcy framework and establish the In
The document summarizes India's Insolvency and Bankruptcy Code of 2016. It consolidates previous bankruptcy laws into a single code and establishes mechanisms for insolvency resolution, regulation, and adjudication. The code aims to promote business and availability of credit. It outlines procedures for insolvency resolution and liquidation of corporate entities. If resolution fails, assets are liquidated according to the order of priority of payments to secured creditors, wages, financial and unsecured debts. The code establishes a new framework for addressing insolvency and bankruptcy in India.
The document discusses key aspects of India's Insolvency and Bankruptcy Code of 2016, including definitions of insolvency and bankruptcy, the laws that previously governed these areas, reasons for introducing the new code, and key parties and processes involved. It also summarizes critiques of the code and amendments made in 2017 to strengthen its provisions.
The document provides definitions for key terms used in the Insolvency and Bankruptcy Code of India. It defines terms related to insolvency resolution, liquidation, and bankruptcy for corporate entities, partnership firms, and individuals. Some key terms defined include "corporate debtor", "creditor", "debt", "default", "financial creditor", "operational creditor", "insolvency professional", and "secured creditor". The definitions section aims to provide clarity on the meaning of important concepts and entities referenced in the Insolvency and Bankruptcy Code.
The Insolvency and Bankruptcy Code, 2016 (Code) came into operation w.e.f 28th May, 2016.
It seeks to consolidate the existing framework by by creating a single law for Insolvency and Bankruptcy.
Insolvency is when an individual, corporation, or other organization cannot meet its financial obligations for paying debts as they are due.
Insolvency can occur when certain things happen, some of which may include: poor cash management, increase in cash expenses, or decrease in cash flow.
Liquidation process under the Insolvency and Bankruptcy Code, 2016Alok Saksena
The document discusses the liquidation process under the Insolvency and Bankruptcy Code of India. It explains that a liquidation order will be passed if the corporate insolvency resolution process fails or the approved resolution plan is not implemented. Upon a liquidation order, the company enters liquidation, all employees are terminated except where the business is continued, and legal proceedings against the company are barred. The liquidator is appointed to manage the seven step liquidation process, which includes verifying claims, selling assets, and distributing the proceeds in a specified order to settle debts and dissolve the company within two years.
This presentation gives an overview of the laws and regulations regarding insolvency, liquidation and winding up in Nepal
PLEASE HIT LIKE IF IT'S HELPFUL! :D
The Insolvency and Bankruptcy Code of 2016 consolidated existing bankruptcy laws in India to create a single law governing insolvency and bankruptcy. It aims to simplify and expedite bankruptcy proceedings while protecting creditor interests. Under the Code, a corporate insolvency resolution process is initiated when financial creditors with claims over Rs. 1 crore file an application with the National Company Law Tribunal. If no resolution plan is approved within 180 days, the company enters liquidation. The Code established the Insolvency and Bankruptcy Board of India as the regulator and introduced insolvency professionals to manage proceedings.
Covers all the issues related to Insolvency Laws and also compares the steps taken by other countries in Insolvency Laws. Views on the impact of COVID-19 on IBC laws are discussed.
A Structured Overview of Corporate Insolvency Regime in IndiaEquiCorp Associates
With the recent changes in the legal landscape of India, the Insolvency & Bankruptcy Code, 2016 (“Code”) is the biggest and major legal reforms in the recent times, which has curtailed the earlier extensive process of debt recovery and insolvency. The Code has repealed around eleven laws and provides a comprehensive and time bound mechanism to either put a distressed entity on a firm revival path or timely liquidation of assets.
The Adjudication Authority for companies shall be National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) and Supreme Court shall be the highest order of appeal or having jurisdiction to grant any stay or injunction in respect of matters within the domain of the NCLT and NCLAT.
The document provides an overview of the Insolvency and Bankruptcy Code of India. It discusses India's poor ranking in resolving insolvency which led to the creation of the new code. The code aims to create a single law consolidating existing bankruptcy laws and establish a standardized process for insolvency resolution with strict timelines. Key aspects covered include the roles of various authorities and professionals involved, the corporate insolvency resolution process, and liquidation process if resolution fails.
The document provides an overview and highlights of the Insolvency and Bankruptcy Code of India. It discusses the need for reforming India's insolvency and bankruptcy laws, the objectives of the Code, and some key aspects of the Code. The Code aims to consolidate bankruptcy laws, resolve insolvency issues in a time-bound manner, promote entrepreneurship and availability of credit, and establish specialized authorities like the Insolvency and Bankruptcy Board of India. It lays out swift processes for corporate insolvency resolution within a 180-day timeline that can be extended once. Approved resolution plans require a 66% majority vote of financial creditors and sanction of the adjudicating authority.
Acquisory News Chronicle May 2016 - Article on Insolvency and Bankruptcy Code 2016 – A dawn in the era of Credit Market Laws
Latest Corporate News updates- RBI Bank, MCA, SEBI, Tax, DIPP and others
Insolvency & bankruptcy code an overviewChirag Gupta
The document provides an overview of the key aspects of the Insolvency and Bankruptcy Code (IBC) of India. It summarizes the various laws that previously governed insolvency in India and the issues they posed. It then outlines the key features and objectives of the IBC, including establishing a time-bound process for insolvency resolution, promoting entrepreneurship and credit availability. The summary explains the various authorities established under the IBC and their roles, as well as the processes for corporate insolvency resolution, liquidation, voluntary liquidation and bankruptcy for individuals and firms.
PPT on Insolvency and Bankruptcy Code, 2016 analysis the jargons, processes, access, limitations, opportunities, etc. A bried comparison with US Bankruptcy Code has also been stated and addressing issues like cross border insolvency amongst others issues. Also, the probe of recently notified transfer of pending proceedings has been made in the presentation.
Distressed M&A under the Bankruptcy CodeShruti Jadhav
The document provides an overview of distressed M&A under the Insolvency and Bankruptcy Code of India. It discusses the key aspects of the resolution process including initiation, moratorium, appointment of the resolution professional, formation of the committee of creditors, preparation of an information memorandum, invitation of resolution plans subject to certain eligibility criteria, and timelines for completion of the process within 270 days.
The document discusses insolvency laws in the United Arab Emirates (UAE). It outlines the key pieces of legislation governing insolvency, including limitations of the current framework. The importance of developed insolvency laws for protecting creditors and facilitating investment is highlighted. Main drawbacks of the UAE's existing insolvency system include limited applicability, a slow court-based process, and criminal liability for debtors. The evolution of the insolvency market in the UAE is discussed, along with key proposed features and procedures of a new insolvency law aimed at being less punitive and facilitating reorganization over liquidation.
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What is the procedure for corporate insolvency resolution under the IBC.pdfyamunaNMH
A recovery method made available to creditors under the Insolvency and Bankruptcy Code (IBC) is the Corporate Insolvency Resolution Process (CIRP). The concerned creditor or the corporate entity (the debtor) itself may start CIRP in the event that a corporate entity becomes insolvent (unable to repay debt).
INSOLVENCY & BANKRUPTCY CODE – A GAME CHANGER ?Alok Saksena
The document discusses the Insolvency and Bankruptcy Code (I&BC) of India and its potential impact. It notes that previous schemes for restructuring stressed assets and reviving sick companies were largely unsuccessful. The I&BC aims to expedite the recovery process within strict timelines of 180 days, appointing resolution professionals to manage proceedings. If no resolution is found, companies will go into liquidation. The code overhauls previous recovery and insolvency laws, consolidating processes in the National Company Law Tribunal to potentially reduce recovery time and costs compared to other countries.
This document discusses professional opportunities available under India's Insolvency and Bankruptcy Code (IBC). It notes that the IBC provides a comprehensive framework for insolvency and bankruptcy proceedings for both individuals and companies. Some key professional roles under the IBC include serving as an interim resolution professional, resolution professional, liquidator, bankruptcy trustee, and providing advisory services. The document provides a list of 21 specific professional opportunities and areas of practice under the IBC, such as advising secured creditors, acting as a mediator, drafting legal documents, and assisting with claims filing. It also summarizes some of the major amendments made to the IBC since its enactment to strengthen processes and address emerging issues.
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1. The Insolvency and Bankruptcy Code (“Insolvency Code”),2016 had been introduced in
the Lok Sabha on December 21, 2015. It was passed by the Lok Sabha on May 5, 2016
and by the Rajya Sabha on May 11, 2016. The Insolvency and Bankruptcy Code, 2016
seeks to consolidate all existing laws. The code repeals the Presidency Towns Insolvency
Act, 1909, as well as amend 11 legislations, including the Companies Act, 2013;
Securitisation and Reconstruction of Financial Assets and Enforcement of Security
Interest Act, 2002; etc.
INSOLVENCY AND BANKRUPTCY CODE, 2016
1
2. 2
Structure of the Code
PART I
PRELIMINARY
It consist of definition
of various terms like
corporate person,
debt, default etc.
PART II
INSOLVENCY RESOULTION
AND LIQUIDATION FOR
CORPORATE PERSON
It deals with resolution
and liquidation process,
adjudicating authority and
offences relating to it.
PART III
INSOLVENCY
RESOLUTION AND
BANKRUPTCY FOR
INDIVIDUAL AND
PARTNERSHIP FIRM
It deals with IRS ,
fresh start process
and bankruptcy order
PART IV
REGULATION OF INSOVENCY
PROFESSIONALS, AGENCIES
AND INFORMATION
UTILITIES
It deals with formation and
function of Insolvency and
Bankruptcy Board of India
and other agencies.
CODE HAS 252 SECTIONS DIVIDED INTO 5 PARTS EACH DIVIDED INTO 7 CHAPTERS
3. 3
Facilitate early detection by allowing all creditors to trigger resolution process
Establishes Insolvency and Bankruptcy Board of India as the regulator and National
Company Law Tribunal as adjudicating authority for corporate entities
Provide for predictable and viability assessment mechanism, distribution waterfalls and
liquidation process
Key Highlights of the Code
Applicable to both corporates and non-corporates
Provide for penalty on promoters for asset diversion leading up to liquidation
4. 4
To be continued…..
Insolvency Process for Corporate Debtors
It is a two step process consisting of Insolvency Resolution Process and Liquidation Process.
Here we will first discuss Insolvency Resolution process
Occurrence of default ( Min. 1 Lakh)
Application for initiation of process before National Company Law
Tribunal(NCLT)
• Financial Creditors
• Operational
Creditors
• Corporate Debtors
NCLT ascertain the existence of default , admit the application and
the process commence
14 days
Appointment of resolution professional by NCLT
• Imposition of
moratorium
period(period
when no judicial
proceeding can be
initiated.
• Vesting of
management
powersAfter collation of claims received
against corporate debtor
5. Insolvency Resolution Process Continued….
Resolution plan conforming to the code approved by 75% of financial creditors
AUTHORITY APPROVES
PLAN: PLAN BECOMES
BINDING
180 days extendable to 90 days
AUTHORITY ISSUES A
LIQUIDATION ORDER
The Resolution Professional identifies the financial creditors and constitutes a
creditors committee.
YES NO
5
6. 6
Liquidation Process
Liquidator to
either reject or
accept the claim
and communicate
the same within
3 days
Liquidator
identifies the
assets of
debtor and
hold estate as
fiduciary
Secured and
unsecured
creditor are
paid off in order
of priority
NCLT pass
order
dissolving the
corporate
debtor
If all assets of
debtor are
liquidated then
application is made
for dissolution
In the event that NCLT rejects the plan or creditors committee doesn’t approve the plan within 180 days
or debtor contravenes the plan, the liquidation process begins
Resolution
Professional is
appointed as
liquidator
Liquidator to
collect claim
from creditor
within 30 days
Copy of order
forwarded to
ROC within 7
days
7. Distribution of Assets/Waterfall
Insolvency Resolution and Liquidation Cost
Secured Creditor + Workmen dues
Unsecured Creditors
Central and State Government Dues
Any remaining debt or dues
Preference
shareholders
Equity shareholders
7
8. Voluntary Liquidation
• The directors of the Company can initiate the
voluntary liquidation of the Company upon
filing a petition for the voluntary winding up.
• The petition needs to be approved by a special
resolution in a general meeting of members
along with two – thirds majority of creditors in
value of the debt held by such creditors.
• The liquidation process will commence from
the date of passing resolution.
• NCLT to pass an order dissolving the corporate
debtor from the date of such order.
Fast Track Insolvency Resolution
• Application for fast track insolvency may be
made in respect of corporate debtor with
income below specified threshold or falling
under category notified by Central Govt.
• The process to be completed within 90 days of
commencement of process.
• It can be extended to 45 days.
• Process may be initiated by corporate debtor
by furnishing proof of default.
Other Modes of Insolvency Resolution and Liquidation for
Corporate Persons
5
9. Part III of the Code sets out the legal regime dealing with the insolvency mechanism for individuals and
partnership firms and includes within its ambit, 3 processes, namely, the 'fresh start process', 'the insolvency
resolution process' and 'bankruptcy‘ where the amount of the default is not less than Rs.one thousand
Insolvency Resolution and Bankruptcy for Individual and
Partnership Firm
Fast track process
• An application for a fresh start
process, can be made for any
debt (other than secured debt,
debt which has been incurred 3
months prior to the date of
application ).
• Target group- Gross income<60,00
Assets < 20,00 Qualifying debt
<35,000 No dwelling unit/house
ownership
• Time : 6 months
Insolvency Resolution Process
Application to adjudicating
authority
Admission or rejection by
resolution professional within
10 days
Repayment Plan by creditor
and debtor (1/3 majority)
Order by Adjudicating
authority within 180 days
Bankruptcy Process
• Last resort
• Liquidation of estate of
bankrupt
• Public notice inviting claims
• Discharge in a year
• Priority in payment of debts
9
10. Institutional bodies
Insolvency and Bankruptcy Board of
India (IB Board) consist of members
including representatives from MCA,
MoF, Reserve Bank of India and
would regulate the appointment of
insolvency professionals, information
utilities and promote transparency in
governance. The board will also
make model bye laws for regulating
insolvency professionals.
Insolvency professional
agency is the body that
would admit insolvency
professionals as members
and develop a code of
conduct and promote
transparency and best
practices in governance.
Information
utilities
are specialized
licensed bodies
which would
collect, maintain
and disseminate
information relating
to the indebtedness
of companies.
Insolvency
professionals are
licensed professionals
appointed by
insolvency
professional agencies
who would take on the
roles
of resolution
professional or
liquidator in an
insolvency resolution
process.
The code provides for institution of Insolvency Board, informational utilities appointment of
insolvency profession as regulating authority of the bankruptcy and insolvency proceeding.
10
11. 11
Conclusion
India's weak insolvency regime, its significant inefficiencies and systematic
abuse are some of the reasons for the distressed state of credit markets in
India today. The Code promises to bring about far-reaching reforms with a
thrust on creditor driven insolvency resolution. It aims at early identification
of financial failure and maximizing the asset value of insolvent firms. The
unified regime envisages a structured and time-bound process for
insolvency resolution and liquidation, which should significantly improve
debt recovery rates and revitalize the ailing Indian corporate bond markets.
Overall this legislation is a huge step towards the ease of doing business in
India and has the potential to bring business practices in India closer to
more developed markets over the long term.