Keerat Sidhu, IIM Rohtak
INTRODUCTION
The Insolvency and Bankruptcy Code, 2016 (IBC) is a banking law to consolidate the existing framework under one umbrella. It was presented in 2015 by Late Mr Arun Jaitley, essentially to resolve bankruptcies that were already within the long term that did not offer a financially practical course of action. The code points to ensure little businesses and ease the company within the nation
The adoption of this statute creates many overlapping provisions, including:
• Sick Industrial Companies (Special Provisions) Act, 1985
• The Recovery of Debts to Banks and Financial Institutions Act, 1993
• The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
• The companies Act,2013
The objectives of this code were improving the management of conflicts between creditors and debtors, limiting malfeasance and business failure, and microeconomic and macroeconomic downturns losses allocation. The code's primary purpose was to strike a fair balance between all of the company's stakeholders' interests and the damage that creditors could have to endure in a default. The code forms have changed the debtor-creditor relationship because it gives a time-bound prepare to resolve indebtedness. When a default happens within the reimbursement, the lenders control the debtors' resources. They must decide to settle it, and more often than not, the companies need to total the complete work out inside 180 days beneath IBC. And time duration for completion of the activity depends on company size.
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