One of the biggest challenges in a volatile Indian economy is dealing in legal Insolvency and bankruptcy cases. Mainly due to the insolvency law in India was ancient and quite fossilised. The modified insolvency and bankruptcy law offers a unwavering , comprehensive insolvency legislation encompassing all companies, partnerships and individuals barring the financial firms. The Government of India is proposing a separate framework for bankruptcy resolution in failing banks and financial sector entities. Recognising that reforms in the insolvency and bankruptcy regime are critical for improving the business environment and alleviating distressed credit markets, the Government of India introduced the Insolvency and Bankruptcy Code Bill in November 2015, drafted by a specially constituted Bankruptcy Law Reforms Committee’ (BLRC) under the Ministry of Finance. After a public consultation process and recommendations from a joint committee of Parliament, both houses of Parliament passed the Insolvency and Bankruptcy Code, 2016 (“Code/IBC”). Ever since its inception we have been repeateadly representing our clients in all Company Law Tribunals and helping their clients recover their rightful dues. As an experienced in insolvency and bankruptcy lawyers, we handle cases for and against financial creditors as well as operational creditors in a time bound and cost-effective approach.
What does the Insolvency and Bankruptcy Code, 2016 aim to do?
The 2016 Code applies to companies and individuals. This code, provides for a time-bound process to resolve insolvency. If there is a situation where debtor defaults in repayment , creditors gain control over debtor’s assets and must take decisions to resolve insolvency within a 180-day period. To ensure an uninterrupted resolution process, the Code also provides immunity to debtors from resolution claims of creditors during this period. The Code also consolidates provisions of the current legislative framework to form a common forum for debtors and creditors of all classes to resolve insolvency.