Introduced in 2016, the Insolvency and Bankruptcy Code (IBC) revolutionized the insolvency regime in India by offering a single-window, time-bound process for resolution and liquidation of debtors across categories — including corporates, LLPs, SMEs, and individuals. The Code empowers various classes of creditors, including secured, unsecured, employees, and regulatory bodies, to initiate insolvency proceedings in the event of non-payment of legitimate claims.
Institutional Framework under IBC
The Code is supported by a well-defined institutional structure:
- Insolvency and Bankruptcy Board of India (IBBI) – Regulatory authority
- National Company Law Tribunal (NCLT) – Adjudicating Authority for corporate insolvency
- National Company Law Appellate Tribunal (NCLAT) – Appellate authority
- Debt Recovery Tribunal (DRT) – For individual and partnership insolvency cases
- Insolvency Professionals (IPs) – Professionals managing the insolvency process
- Insolvency Professional Agencies (IPAs) – Bodies regulating IPs
Professional services for insolvency and bankruptcy matters, including:
- Advisory and Consultancy Services for debtors, creditors, and insolvency professionals
- Formation and Administration of the Committee of Creditors and convening meetings
- Claim Management Services — collection, verification, and reconciliation of creditor claims
- Resolution Plan Evaluation and facilitating approval from CoC
- Filing and Liaising with Adjudicating Authorities (NCLT/DRT)
- Other allied services as required under the Insolvency and Bankruptcy Code, 2016