The Insolvency and Bankruptcy Code (IBC), 2016 was enacted to consolidate and
harmonize India’s insolvency law by repealing several overlapping legislations,
including the Companies Act, 1956, and the Recovery of Debts Due to Banks and
Financial Institutions Act, 1993, that led to delays, inefficiencies, and
uncertainty, adversely affecting businesses, creditors, and the economy. The IBC
hopes to create a time-bound and effective resolution framework, enhance
recovery for creditors, ease the burden of courts, and enhance investor
confidence by replacing the previous regime led by the debtor with a
creditor-in-control model and the creation of the NCLT, NCLAT, and IBBI as
regulatory authorities.
harmonize India’s insolvency law by repealing several overlapping legislations,
including the Companies Act, 1956, and the Recovery of Debts Due to Banks and
Financial Institutions Act, 1993, that led to delays, inefficiencies, and
uncertainty, adversely affecting businesses, creditors, and the economy. The IBC
hopes to create a time-bound and effective resolution framework, enhance
recovery for creditors, ease the burden of courts, and enhance investor
confidence by replacing the previous regime led by the debtor with a
creditor-in-control model and the creation of the NCLT, NCLAT, and IBBI as
regulatory authorities.
Since its advent, the IBC has…
