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What is IBC

IBC

About IBC

What is IBC

Insolvency and Bankruptcy Code (IBC) 2016 was implemented through an act of Parliament. It got Presidential assent in May 2016.
 
Centre introduced the IBC in 2016 to resolve claims involving insolvent companies.
 
The bankruptcy code is a one stop solution for resolving insolvencies, which previously was a long process that did not offer an economically viable arrangement. The code aims to protect the interests of small investors and make the process of doing business less cumbersome. The IBC has 255 sections and 11 Schedules.
 
IBC was intended to tackle the bad loan problems that were affecting the banking system.
 
The IBC process has changed the debtor-creditor relationship. A number of major cases have been resolved in two years, while some others are in advanced stages of resolution.
 
It provides for a time-bound process to resolve insolvency. When a default in repayment occurs, creditors gain control over debtor’s assets and must take decisions to resolve insolvency. Under IBC, debtor and creditor both can start 'recovery' proceedings against each other.
 
Companies have to complete the entire insolvency exercise within 180 days under IBC. The deadline may be extended if the creditors do not raise objections on the extension. For smaller companies, including startups with an annual turnover of Rs 1 crore, the whole exercise of insolvency must be completed in 90 days and the deadline can be extended by 45 days. If debt resolution doesn't happen the company goes for liquidation.
 
IBC was intended to tackle the bad loan problems that were affecting the banking system.
 
The IBC process has changed the debtor-creditor relationship. A number of major cases have been resolved in two years, while some others are in advanced stages of resolution.
 
It provides for a time-bound process to resolve insolvency. When a default in repayment occurs, creditors gain control over debtor’s assets and must take decisions to resolve insolvency. Under IBC, debtor and creditor both can start 'recovery' proceedings against each other.
 
Companies have to complete the entire insolvency exercise within 180 days under IBC. The deadline may be extended if the creditors do not raise objections on the extension. For smaller companies, including startups with an annual turnover of Rs 1 crore, the whole exercise of insolvency must be completed in 90 days and the deadline can be extended by 45 days. If debt resolution doesn't happen the company goes for liquidation.
 

Latest Updates on IBC

At 269, NCLT approves record resolutions under IBC in FY24: IBBI data

3 min read Last Updated :May 16 2024 | 11:45 PM IST
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NCLAT sets aside insolvency process against Dream 11 parent company

2 min read Last Updated :Apr 19 2024 | 8:48 PM IST
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Special Courts with sessions judges can try offences under IBC: SC

2 min read Last Updated :Apr 19 2024 | 8:36 PM IST
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After making insolvency process creditor-driven, can IBC address the delays

6 min read Last Updated :Apr 14 2024 | 9:14 PM IST
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Reached settlement with Celestial Aviation, formalities remain: SpiceJet

2 min read Last Updated :Feb 26 2024 | 12:39 PM IST
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A third of withdrawn insolvency processes fully settled, says IBBI

1 min read Last Updated :Feb 20 2024 | 11:04 PM IST
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The post-May 2024 dilemma

6 min read Last Updated :Jan 31 2024 | 9:41 PM IST
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Economic prospects

3 min read Last Updated :Jan 30 2024 | 9:44 PM IST
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Battery maker IBC raises $35 mn to fund manufacturing expansion in India

2 min read Last Updated :Jan 18 2024 | 1:52 PM IST
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IBC needs further changes for resolution of biz conglomerates: RBI Dy Guv

3 min read Last Updated :Jan 17 2024 | 11:52 PM IST
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Resolve this: How India's insolvency process drags on, erodes asset value

5 min read Last Updated :Jan 16 2024 | 3:41 PM IST
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Best of BS Opinion: Power for all, Mutual funds' growing heft & more

1 min read Last Updated :Jan 16 2024 | 6:30 AM IST
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A performance appraisal of IBC

6 min read Last Updated :Jan 15 2024 | 9:55 PM IST
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Learnings from IBC suggest need for 'some course correction': RBI chief Das

3 min read Last Updated :Jan 11 2024 | 6:14 PM IST
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IBC yet to address resolution for insolvencies of group companies

6 min read Last Updated :Jan 01 2024 | 11:05 PM IST
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IBBI forms panel of 787 professionals to expedite resolution process

2 min read Last Updated :Dec 28 2023 | 11:24 AM IST
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MCA planning new portal to streamline IBC cases, boost transparency

3 min read Last Updated :Dec 24 2023 | 11:03 PM IST
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Government may implement 2-month asset freeze of airlines under insolvency

2 min read Last Updated :Dec 20 2023 | 12:28 PM IST
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Lanco Amarkantak Power creditors to vote on Adani Power's Rs 4,100 cr bid

2 min read Last Updated :Dec 15 2023 | 1:13 PM IST
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IBC has been revolutionary, but it's time for improvement and tweaks

4 min read Last Updated :Dec 03 2023 | 10:03 PM IST
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