Legal Guide Part 11 - Insolvency & Bankruptcy Code 2016 Explained

- Paragraph 1 - the statute: The Insolvency and Bankruptcy Code 2016 (IBC) was enacted on 28 May 2016, replacing a patchwork of legacy statutes (Presidency-Towns Insolvency Act 1909, Provincial Insolvency Act 1920, Sick Industrial Companies (Special Provisions) Act 1985, the relevant chapters of the Companies Act 1956 / 2013, SARFAESI Act 2002, RDDB Act 1993). The IBC is administered by the Insolvency and Bankruptcy Board of India (IBBI, ibbi.gov.in) and adjudicated by the National Company Law Tribunal (NCLT) at first instance, with appeals to the National Company Law Appellate Tribunal (NCLAT) and the Supreme Court. The IBC has three processes for corporate persons - CIRP (Corporate Insolvency Resolution Process, s.6-33), Fast-Track CIRP (s.55-58, for certain categories - currently small companies, dead companies, OPCs with low turnover), and Liquidation (s.33-54) - plus a separate framework for personal guarantors to corporate debtors (s.60, s.95-114, brought into force from 1 December 2019), partnerships and proprietorships (Schedule II; not yet fully notified), and individual insolvency (Schedule I; Presidency-Towns Insolvency Act 1909 continues to apply).