Synergies And Transformations: Exploring The Influence Of IBC On Companies Act

Nirali Nayak, BA LLB, Xavier Law School, XIM University, Bhubaneswar

ABSTRACT

The Insolvency and Bankruptcy Code, 2016, has been a new addition to the other operational rules. Its introduction made a complete overhaul to the Indian insolvency resolution regime, this provided a single law for insolvency and bankruptcy-related matters, which replaced the previously existing laws and streamlined the processes related to bankruptcy and insolvency1. With the Companies Act and the IBC Code, both statutes address interconnected provisions, the Code impinging on the operations of the Act, conflicts emerging between the two laws, and ensuing ambiguity in their operational procedures are unavoidable2. The introduction of IBC repealed some legislations and amended some. Its introduction aimed at fostering the revival of a corporate debtor, prioritizing the balance of interests among stakeholders, and maximizing the value of the assets of said corporate debtor. This legislation significantly enhances the 'Ease of Doing Business in India. This paper offers to critically analyze the applicability of The IBC on the priorly existing Companies Act; it compares the overlapping provisions, substantiates if the IBC over-rides the Companies Act, delve to see the important amendments made to the Act, and understands the precedents which set the foundation for the important provisions. Further, it also underlines the necessity to introduce entirely new legislation, especially for the liquidation process of companies where laws already existed regarding that. It discusses what changes were made in the existing legislation.

Keywords: Non-performing assets, winding up, liquidation, National Company Law Tribunal, IBC, Time-Bound Resolution, SICK company