Insolvency and Bankruptcy Board of India
Context
- The Insolvency and Bankruptcy Board of India (IBBI) has amended the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations.
About the amendment:
- For effective monitoring, the amendment requires the RP to file Form CIRP 8 on the electronic platform of the Board, intimating details of his opinion and determination in respect of avoidance transactions.
Aim of the amendments:
- amendments were aimed at enhancing the discipline, transparency, and accountability in corporate insolvency proceedings.
About IBC code:
|
Year of Enactment |
2016 |
|
Regulator |
Insolvency and Bankruptcy Board of India · 10 Member Board · Has RBI and Government representation |
|
Entities created |
· Insolvency Professional Agencies (IPAs); Insolvency · Resolution Professionals (IRPs); · Information Utilities |
|
Adjudicators |
National Company law tribunal for · Corporate entities and LLP etc. Debt Recovery Tribunal for · For non-corporate entities such as individuals, partnership funds etc. |
|
Required Time |
· 180 days to resolve insolvency · 270 days in specific circumstances |
|
Due Sharing ( Sharing of the Proceeds received after liquidation with the different claimants) |
· Cost of Insolvency Process · Workers, Secured Creditors · Employee Wages · Unsecured Creditors · Government due · Any other remaining debt (This remains the order of Priority) |
|
About the Different Entities |
|
|
Information Utilities |
· Process the financial information needed for the bankruptcy process |
|
Insolvency Professional |
· To handle and proceed the bankruptcy process |
|
Insolvency Professional Agencies |
· Provide code of conduct and rules to be followed by Insolvency Professional |
Achievement of the Code:
- Admission of the 1322 cases by the National Company Law Tribunal
- Disposition of the more than 4500 cases at pre-admission stage.
- Fear in the debtor of proceeding at National Company Law Tribunal leading to timely payment of debt
- Transparent procedure of the successful completion of debt resolution
- Enhanced the ease of doing business rank of India
- Average time taken for the resolution is within 270 days which is significant improvement from 3-4 years taken in earlier days.
- Improvement in the recovery rates for financial creditors
- 2017 amendment had allowed the treatment of homebuyers at par with financial creditors thus protecting the interest of homebuyers.
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