Which law introduced insolvency proceedings for companies?
The law that introduced insolvency proceedings for companies in India is the:
Insolvency and Bankruptcy Code (IBC), 2016
It provides a unified and time-bound framework for:
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Corporate insolvency
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Individual insolvency
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Bankruptcy resolution
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Liquidation proceedings
It is one of the most significant economic reforms in India.
The law that introduced insolvency proceedings for companies in India is the Insolvency and Bankruptcy Code, 2016 (IBC). This Code provides a consolidated and time-bound process for insolvency resolution among companies and individuals. Under the IBC, the Corporate Insolvency Resolution Process (CIRP) can be initiated by financial creditors, operational creditors, or the company itself when a default occurs. The process is handled by the National Company Law Tribunal (NCLT) and includes provisions for a moratorium during the resolution process, a committee of creditors to review resolution plans, and liquidation if the company cannot be revived. The IBC replaced earlier fragmented laws and created a unified framework for insolvency and bankruptcy proceedings in India.
