IBC Law

• The IBC (Insolvency and Bankruptcy Code) is a comprehensive legislation enacted by the Government of India in 2016. It provides a legal framework for the insolvency resolution process and bankruptcy proceedings for corporate entities, partnership firms, and individuals.
• Insolvency Resolution Process (IRP): The IBC introduces a time-bound process for the resolution of insolvency cases. It aims to facilitate the revival or restructuring of financially distressed entities to maximize the value of their assets.
• Insolvency Professionals (IPs): IPs play a crucial role in the insolvency process. They act as resolution professionals, liquidators, or bankruptcy trustees, overseeing the affairs of the debtor and managing the resolution or liquidation process.
• Liquidation: If a resolution plan fails or is not feasible, the entity may proceed with liquidation. The IBC provides for a transparent and orderly liquidation process to maximize the value of the debtor’s assets and distribute them to creditors.
• Insolvency and Bankruptcy Board of India (IBBI): The IBBI is the regulatory body established under the IBC. It regulates insolvency professionals, insolvency professional agencies, and information utilities, and ensures the efficient implementation of the IBC.
• Adjudicating Authorities: The National Company Law Tribunal (NCLT) and the Debt Recovery Tribunals (DRTs) act as adjudicating authorities under the IBC. They hear and decide insolvency and bankruptcy cases, approve resolution plans, and oversee the liquidation process.

The IBC aims to promote a time-bound and creditor-friendly insolvency resolution process, protect the interests of stakeholders, and facilitate the growth of a more robust and efficient business environment in India.