Page 40 - Banking Finance December 2019

ARTICLE

DECODING THE

INSOLVENCY AND

BANKRUPTCY

CODE: RECENT

AMENDMENTS

2019

The Insolvency and Bankruptcy Code India by the Central Government. The board manages the
registration of insolvency professionals.
The Insolvency and Bankruptcy Code 2016 (IBC), was
introduced in India to bring all the matters relating to
insolvency, liquidation, voluntary liquidation or bankruptcy The code consists of 5 main parts:
of companies, LLPs, partnership firms and individuals under I. Preliminary
a single legislation. II. Insolvency Resolution and Liquidation for Corporate
Persons
The code repeals the Presidency Town Insolvency Act 1909, III. Insolvency Resolution and Bankruptcy for Individuals and
the Provincial Insolvency Act, 1920 and Sick Industrial Partnership Firms
Companies (Special Provisions) Act, 1985. It also amends
various laws including Indian Partnership Act, 1932, Central IV. Regulation of Insolvency Professionals, Insolvency
Excise Act, 1944, Companies Act, 2013, Limited Liability Professional agencies and Information Utilities
Partnership Act 2008 etc. The code also provides for V. Miscellaneous
establishment of the Insolvency and Bankruptcy Board of
When a Corporate debtor commits a default, a Financial
Creditor, an Operational Creditor or the debtor itself may
About the author start Corporate Insolvency Resolution Process (CIRP). The
CIRP has to be completed within 180 days from the date of
Manish Yadav admission of the application by NCLT. The NCLT will appoint
Manager (Research) an Interim Resolution Professional, within 14 days from the
State Bank Institute of Credit and Risk Management, insolvency commencement date. His appointment is not for
Gurugram more than 30 days. The interim Resolution Professional will
determine the financial position of the debtor. He will also

40 | 2019 | DECEMBER | BANKING FINANCE