The Insolvency and Bankruptcy Code, of 2016 seeks to combine the prevailing framework by forming bankruptcy law. The main motive behind the execution Insolvency and Bankruptcy Code is to maximize the value of the assets and to find solutions for worried assets risen out of non-performing assets.
The IBC, 2016 offers pre-arranged insolvency resolving measures for individuals, companies, and partnership companies. The code provides sufficient time for accomplishing the insolvency resolution process for both corporates and individuals.
The Insolvency and Bankruptcy Code 2016 states that IBBI shall supervise the proceedings associated with insolvency and bankruptcy within the country and also standardize all the companies registered under the board. IBBC consists of 10 members that include finance ministries and representatives of the Law and Reserve Bank of India.
The insolvency and bankruptcy procedure should be executed by only licensed Insolvency Resolution professionals. RP/IRP has control over the debtor’s assets during the process of insolvency.
The IBC 2016 announced 2 divergent tribunals for supervising the Insolvency resolution process for individuals and companies. Two distinct tribunals of the IBC code are (i) the Debt Recovery Tribunal for supervising the procedures of insolvency resolution for both partnership firms and individuals. (ii) The National Company Law Tribunal for Limited Liability Partnership companies
In IBC some specific individuals are forbidden from delivering any resolution plan in a particular case. Henceforth, promoters, the management or wilful defaulters of any company when the non-performing remaining debt and disqualified directors cannot submit any plan. Also, the bill prohibits the selling of a defaulter’s property to any such individuals at the time of liquidation.
An insolvency petition has been offered to the authority that arbitrates by financial creditors, operation, or the corporate debtor. The plea can be rejected or accepted in a time of 14 days. In case the petition acquires reception then the tribunal has to appoint a Resolution Professional or Insolvency Resolution Professional for enrolling a plan of insolvency resolution within a period of 180.
ASC has developed a large team responsible for conducting various functions of the Fast track Corporate Insolvency Resolution Process. The team consists of Law graduates, Company secretaries, Cost Accountants, experienced commerce graduates, chartered accountants, experienced accountants, computer operators, etc. ASC provides complete legal support and advice for understanding the various legal documents received by partners along with the claims and other documents sourced from Corporate Debtor.
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