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Insolvency Code

The Insolvency and Bankruptcy Code, 2016 (IBC)
Insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximization of value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders including alteration in the order of priority of payment of Government dues and to establish an Insolvency and Bankruptcy Board of India, and for matters connected therewith or incidental thereto. The Insolvency and Bankruptcy Code is transformational piece of legislation as it seeks to establish an ecosystem for handling Insolvency & Bankruptcy issues. Most importantly it offers an exit plan to all categories of persons-Corporates, Stakeholders, Individuals and Partnership firms, apart from over hauling century old legal framework. Hence it is a game changer in which the Bankers, Courts, Investors and the initiators of insolvency proceedings will have to work in harmony for devising either a survival plan or liquidation of sick units and others facing debt default

Applicability: The act is extends to whole India except part-III of the code to Jammu and Kashmir. The act was enacted and came into force with effect from 28th May 2016. It applicable to : individuals, unlimited partnership firms, Limited liability partnerships, Companies (as per Companies act 2013 or as per any previous law), Companies governed by any special act except so far the said provisions are not inconsistent with the provision of such special act and such other persons as may be notified by the govt.

The four pillars of infrastructures to make the process work effectively are;

Key Features of The Insolvency and Bankruptcy Code