The Insolvency and Bankruptcy Code, 2016 (IBC) is the bankruptcy law of India which attempts to consolidate the current frame by producing one law for bankruptcy. The Insolvency and Bankruptcy Code, 2015 was released in Lok Sabha in December 2015. It was passed by Lok Sabha on 5 May 2016 and from Rajya Sabha on 11 May 2016. The Code obtained the assent of the President of India on 28 May 2016. Particular provisions of this Act have come into force from 5 August and 19 August 2016.
“The bankruptcy code is a 1 stop solution for solving insolvencies which formerly was a very long process which didn’t provide an economically workable arrangement. ”
The Insolvency and Bankruptcy Code, 2015 was introduced in the Lok Sabha on 21 December 2015 by former Finance Minister, Late Arun Jaitley. The code aims to look after the interests of investors and also make the practice of doing business significantly less cumbersome. The IBC includes 255 segments and 11 Schedules. The Code was known to a Joint Committee of Parliament on 23 December 2015, also advocated by the Committee on 28 April 2016. Afterward, it received assent from President Pranab Mukherjee and was informed at The Gazette of India on 28 May 2016.
The Code was passed by parliament in May 2016 and became effective in December 2016. Section 243 of the Code repeals the Presidency Towns Insolvency Act, 1909 and Provincial Insolvency Act, 1920.
The very first bankruptcy settlement arrangement under this code has been passed by National Company Law Tribunal (NCLT) in the event of Synergies-Dooray Automotive Ltd on 14 August 2017 along with the next settlement strategy was filed in the instance of Prowess International Private Limited. The request for bankruptcy was filed by business on 23 January 2017. The settlement program was filed to NCLT in a span of 180 days as required by the code, and also the acceptance for the same was received on 2 August 2017 in the tribunal. The last arrangement was published on 14 August 2017 on the NCLT site.