The Insolvency and Bankruptcy Code

In India, the Insolvency and Bankruptcy Code, 2016 is one matured step towards settling the legal position with respect to financial failures and insolvency. To provide easy exit with a painless mechanism in cases of insolvency of individuals as well as companies, the code has significant value for all stakeholders including various Government Regulators. Introduction of this Code has done away with overlapping provisions contained in various laws – Sick Industrial Companies (Special Provisions) Act 1985, The Recovery of Debts Due to Banks and Financial Institutions Act 1993, The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002, and The Companies Act, 2013.
Before the enactment of this Code, there were multiple agencies dealing with the matters relating to debt, defaults, and insolvency which generally leads to delays, complexities and higher costs in the process of Insolvency resolution.
The ‘Board for Industrial and Financial Reconstruction (BIFR)’, one of the Insolvency Regulators, has been a phantasm for sick industrial companies. It is expected that the Insolvency and Bankruptcy Code, 2016 will expedite the cases pending for a long time and resolve them within 180 days with a further period of 90 days.
The IBC provides for "institutionalised creditor-in-control mechanism for reorganisation and insolvency resolution" of corporate entities, including corporate debtors (CDs) and personal guarantors thereof, in a time-bound manner for maximising the value of assets of such entities. Thereby, it also seeks to "promote entrepreneurship, availability of credit, while balancing the interests of all the stakeholders".

So any law firm providing assistance on insolvency and bankruptcy must provide services such as strategy and advisory services, filing/defending an application, assisting revival or resolution, handling liquidation process, and recovery and execution. 

IndiaLaw LLP is a leading law firm across India, which provides a one stop legal service in Mumbai, Delhi Chennai, Kolkata, Bengaluru, Hyderabad, Cochin, Ahmedabad and Pune. For more details click the following links Insolvency and Bankruptcy Law Firm in India, Law Firm India.



Location: Mumbai, Maharashtra, India

Comments

Post a Comment

Popular posts from this blog

Arbitration in India

With the rapid globalization of the economy and the resulting increase in competition there has been a significant increase in commercial disputes. The outpaced rate of development has led to increase in industrial growth, modernization, improved socio-economic circumstances, technological development which in turn has led to an increase in case overloads for the already overburdened courts. Development and disputes are two sides of the same coin, which means that the alarming rate of development has its snag, which is the increasing number of the disputes in various sectors. The multiplying of outstanding cases in the courts, exorbitant delays in the administration of justice and expenses of litigation have continued to plague people thereby undermining their faith in the justice system. The issue at hand is to examine and choose a right formal legal system, such as Alternative Dispute Resolution procedures. India has a standing as being one of the oldest in the history of the ...
Read more

The Wait for Justice in Litigation

Wait for justice in India can be agonisingly long as the first tier of the country’s justice administration system, district courts, is burdened with over 30 million pending cases and this number is increasing. More than two thirds of the pending suits are criminal cases, showing a lack of effective prosecution and early disposal. Large number of pendency of criminal cases are worrisome for two reasons. Firstly, it denies the access to justice to a large number of victims of crime. Secondly, because of slow progress of the criminal cases, a large number of undertrial prisoners continue to languish in jails, sometimes, they end up spending more time in jail as undertrials than the prescribed term of imprisonment for the crime they have been accused of committing. In September 2018, just before taking the charge, Chief Justice of India, Ranjan Gogoi had expressed concern over the huge pendency of court cases while addressing a group of young lawyers. “Two things are troubl...
Read more

Legal Expertise in Infrastructure Sector: The Whats and Hows

Infrastructure sector is a key driver for the Indian economy. The sector is highly responsible for propelling India’s overall development and enjoys intense focus from Government for initiating policies that would ensure time-bound creation of world class infrastructure in the country. In a market with ever-changing policies, the management of risk and creation of value to ensure the bank-ability of projects requires not only excellent contract drafting skills but also a robust understanding of the law and regulations affecting a project, together with deep industry knowledge.  Practitioners in this area should be adept at handling a wide portfolio of projects and tasks, including Public private partnership projects; concession agreements; engineering, procurement and construction contracts; construction contracts; and operations and management contracts. Further, these practitioners should be equipped to represent developers & project owners, a...
Read more