{"id":4685,"date":"2018-07-08T11:49:41","date_gmt":"2018-07-08T06:19:41","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=4685"},"modified":"2023-01-09T19:01:49","modified_gmt":"2023-01-09T13:31:49","slug":"highlights-in-insolvency-and-bankruptcy-code-2016","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/highlights-in-insolvency-and-bankruptcy-code-2016\/","title":{"rendered":"Highlights in insolvency and bankruptcy code, 2016"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d6f400e0f03\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d6f400e0f03\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/highlights-in-insolvency-and-bankruptcy-code-2016\/#CODES_AIM_TO_REVISE_THE_FOLLOWING_ELEVEN_LAWS\" title=\"CODES AIM TO REVISE THE FOLLOWING ELEVEN LAWS:-\">CODES AIM TO REVISE THE FOLLOWING ELEVEN LAWS:-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/highlights-in-insolvency-and-bankruptcy-code-2016\/#The_codes_come_up_with_an_insolvency_regulator_to_keep_monitoring_over\" title=\"The codes come up with an insolvency regulator to keep monitoring over:-\">The codes come up with an insolvency regulator to keep monitoring over:-<\/a><\/li><\/ul><\/nav><\/div>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/IBC-5-4-18.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-8689\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/IBC-5-4-18.jpg\" alt=\"www.carajput.com; IBC\" width=\"702\" height=\"483\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/IBC-5-4-18.jpg 500w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/IBC-5-4-18-300x206.jpg 300w\" sizes=\"(max-width: 702px) 100vw, 702px\" \/><\/a><\/p>\n<ul>\n<li style=\"text-align: justify;\">The Insolvency and Bankruptcy 2015 was brought in Lok Sabha on 21st December 2015 and was appeal to Joint Committee.<\/li>\n<li style=\"text-align: justify;\">The report was shown in Lok Sabha and Rajya Sabha on 28th April 2016. This code has been passed by Lok Sabha on 5th May 2016 and by Rajya Sabha on 11th May 2016.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-22497\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/ibc-key-milestones.jpg\" alt=\"ibc-key-milestones\" width=\"853\" height=\"623\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/ibc-key-milestones.jpg 600w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/ibc-key-milestones-300x219.jpg 300w\" sizes=\"(max-width: 853px) 100vw, 853px\" \/><\/p>\n<p style=\"text-align: justify;\"><strong>IBC Codes :-<\/strong><\/p>\n<p style=\"text-align: justify;\">For revise the laws related to reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time-bound manner for maximization of value of assets of such persons for advertising entrepreneurship, availability of credit and balance the interest of all the stakeholders including alteration in the priority of payment of Government dues and to establish an Insolvency and Bankruptcy Fund and for matters connected therewith.<\/p>\n<ul style=\"text-align: justify;\">\n<li>Codes cover the Insolvency of individuals, unlimited liability partnerships, Limited Liability partnerships and companies.<\/li>\n<li>The Insolvency Resolution Process for individuals and unlimited liability partnerships varies from the one for companies and <a href=\"https:\/\/www.caindelhiindia.com\/blog\/llp-amendment-bill-2021\/\">LLPs<\/a>.<\/li>\n<li>The Debt Recovery Tribunal should be the Adjudicating Authority with jurisdiction over individuals and unlimited liability partnership firms.<\/li>\n<li>The Appeals from the order of DRT should be taken in Debt Recovery Appellate Tribunal. The National Company Law Tribunal shall be the Adjudicating Authority with jurisdiction over companies &amp; LLPs.<\/li>\n<li>The appeal from the Order of NCLT should be taken in National Company Law Appellate Tribunal.<\/li>\n<li>Codes aims to abolished of the presidency towns insolvency act 1909 and provincial insolvency act 1920.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-22494\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/03\/banckruptcy.jpg\" alt=\"banckruptcy\" width=\"932\" height=\"582\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/03\/banckruptcy.jpg 932w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/03\/banckruptcy-300x187.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/03\/banckruptcy-768x480.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/03\/banckruptcy-800x500.jpg 800w\" sizes=\"(max-width: 932px) 100vw, 932px\" \/><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CODES_AIM_TO_REVISE_THE_FOLLOWING_ELEVEN_LAWS\"><\/span>CODES AIM TO REVISE THE FOLLOWING ELEVEN LAWS:-<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul style=\"text-align: justify;\">\n<li><a href=\"https:\/\/carajput.com\/services\/partnership-registration.php\">The Indian Partnership Act 1932<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/services-excise-consultancy.php\">The Central Excise Act 1944<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/income-tax-services.php\">The Income Tax Act 1961<\/a><\/li>\n<li>The Customs Act 1962<\/li>\n<li>Recovery of Debts Due to Banks and Financial Institutions Act 1993.<\/li>\n<li>The Finance Act 1994.<\/li>\n<li>The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.<\/li>\n<li>Sick Industrial Companies (Special Provisions) Repeal Act 2003.<\/li>\n<li>The payment and Settlement Systems Act 2007.<\/li>\n<li><a href=\"https:\/\/carajput.com\/services\/limited-liability-partnership.php\">The Limited Liability Partnership Act 2008<\/a>.<\/li>\n<li>The Companies Act, 2013.<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"The_codes_come_up_with_an_insolvency_regulator_to_keep_monitoring_over\"><\/span>The codes come up with an insolvency regulator to keep monitoring over:-<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul style=\"text-align: justify;\">\n<li>Insolvency Professionals (IP)<\/li>\n<li>Insolvency Professionals Agencies (IPA)<\/li>\n<li>Information Utilities (IU)<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">\u00a0The Insolvency and Bankruptcy Board of India will guide these agencies to develop professional standards, codes of ethics and exercise a disciplinary check on faulty members for development of a competitive industry for insolvency professionals.<\/p>\n<p style=\"text-align: justify;\">The codes offer information utilities which would gather, collect, attest and broadcast financial information from listed companies and financial as well as operational creditor\u2019s information from companies.<\/p>\n<p style=\"text-align: justify;\">An individual insolvency database is also introduced to be set up with the goal of giving information on insolvency status of individuals.<\/p>\n<p style=\"text-align: justify;\">The Code proposes a fast process and timeline of 180 days is set for dealing with applications for corporate insolvency resolution.<\/p>\n<p style=\"text-align: justify;\">This can be extended for 90 days by the Adjudicating Authority only in some exceptional cases. During insolvency resolution period ( 180\/270 days), the management of the debtor is placed in the hands of an \u00a0resolution professional.<\/p>\n<p style=\"text-align: justify;\">An insolvency resolution plan made by the resolution professional has to be accepted by at least 75% of voting share of the financial creditors.<\/p>\n<p style=\"text-align: justify;\">Plan will need sanction of the Adjudicating Authority. If plan is rejected, the Adjudicating Authority will make an order for the liquidation.<\/p>\n<p style=\"text-align: justify;\">The code offer a fast track insolvency resolution process for companies who have small operations. The process will have to be completed within 90 days that can be extended up to 45 days more if the 75% of the financial creditors agree with this extension.<\/p>\n<p style=\"text-align: justify;\">\u00a0<img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-23878\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/IBC-..jpg\" alt=\"\" width=\"1258\" height=\"756\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/IBC-..jpg 1258w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/IBC-.-300x180.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/IBC-.-1024x615.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/IBC-.-768x462.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/IBC-.-800x481.jpg 800w\" sizes=\"(max-width: 1258px) 100vw, 1258px\" \/><\/p>\n<p><iframe loading=\"lazy\" title=\"Insolvency &amp; Bankruptcy Code, 2016 | Issues &amp; Concerns| How it is form | \u0915\u0902\u092a\u0928\u0940 \u092a\u0930 \u0932\u0947\u0928\u0926\u093e\u0930\u094b\u0902 \u0915\u0947 \u0905\u0927\u093f\u0915\u093e\u0930\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/0Jcppo7HJAo?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe><\/p>\n<p>Popular blog:-<\/p>\n<p><a href=\"https:\/\/carajput.com\/blog\/closure-of-subsidiary-company\/\">CLOSURE OF SUBSIDIARY COMPANY<\/a><\/p>\n<p><a href=\"https:\/\/carajput.com\/blog\/compliance-for-foreign-subsidiary-companies-in-india\/\">Compliance for Foreign Subsidiary Companies in India<\/a><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Insolvency and Bankruptcy 2015 was brought in Lok Sabha on 21st December 2015 and was appeal to Joint Committee. The report was shown in Lok Sabha and Rajya Sabha on 28th April 2016. This code has been passed by Lok Sabha on 5th May 2016 and by Rajya Sabha on 11th May 2016. IBC &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8789],"tags":[2509,3680,3681,3682],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/4685"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=4685"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/4685\/revisions"}],"predecessor-version":[{"id":22500,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/4685\/revisions\/22500"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=4685"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=4685"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=4685"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}