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Insolvency and Bankruptcy Board of India was set up on 1st October 2016 under the Insolvency and Bankruptcy Code, 2016 (Code). Previously, bankruptcy and insolvency process in India took ages to conclude on insolvency / bankruptcy, but now it has been simplified and expedited, ensuring fair negotiations between Debtor and Creditor, by removing the asymmetry of debt and default information.

The institutional infrastructure of IBC is as follow:-

  • The regulator – The Insolvency and Bankruptcy Board of India (IBBI).
  • Adjudicating Authority (AA):
    • National Company Law Tribunal (NCLT) – For Corporate.
    • National Company Law Appellate Tribunal (NCLAT) will act as Appellate Authority.
    • Debt Recovery Tribunal (DRT) – For Individuals and Unlimited Partnership Firms.
  • Insolvency Professionals.
  • Insolvency Professional Agencies.

IBC provides a single window platform to oversee all insolvency & liquidation proceedings for Individual, Small & Medium Enterprise (SME), Limited Liability Partnerships (LLP) & Corporate. it empowers all classes of creditors (secured & unsecured, employees, regulatory authorities) to trigger a resolution process in case of non-payment of valid claim and it authorizes Insolvency Professional to take complete control of the Corporate and to suspend all board of directors & promotors powers for a limited period of time to facilitate discussion and to arrive at common resolution process.

Services related to Insolvency and Bankruptcy are as follows:-

  • Consultancy services to debtors, creditors and other insolvency professionals.
  • Management of Corporate Affairs of the Corporate Debtor.
  • Determining the Financial position of the Debtor.
  • Monitoring the assets of the Debtor including Control and Custody of assets with ownership rights.
  • Raise interim finance with the approval of Committee of Creditors.
  • Executing Deeds, receipts and other documents of Debtor.
  • Constitution of Committee of Creditors and conducting its Meetings.
  • Receive and Collect all the claims.
  • Execution of Contracts and modification of the existing contracts where required.
  • Monitoring the assets of the Debtor including Control and Custody of assets with ownership rights.
  • Examination of Resolution Plan and obtain approval of the Committee of Creditors.
  • Submission of Resolution Plan to Adjudicating Authority.
  • Co-ordination with the Insolvency and Bankruptcy Board of India.
  • As such other related services.