Insolvency and Bankruptcy Code (IBC) Context : The Insolvency and Bankruptcy Code (IBC) came into effect in the year 2016, and it has now successfully completed 10 years of implementation. The IBC is a critical institutional reform that has created a positive impact on credit markets, corporate behavior, investor confidence, and overall economic efficiency. About the Insolvency and Bankruptcy Code (IBC) The Insolvency and Bankruptcy Code (IBC) was enacted in 2016 based on the recommendations of the T. K. Viswanathan Bankruptcy Law Reforms Committee (2015). It provides a consolidated, time-bound, and creditor-driven framework for resolving insolvency in India. It was introduced to curb the rise of Non-Performing Assets (NPAs) and to improve previously weak debt recovery mechanisms like the SARFAESI Act and Lok Adalats. It aims for a swift resolution to prevent the erosion of the value of stressed assets. Protecting asset value, ensuring timely resolution, fostering a healthy credit cycle, and promoting the ease of doing business. The Insolvency and Bankruptcy Board of India (IBBI) is the regulatory authority functioning under this Act. The IBBI frames the regulations, its board includes members from the Ministry of Finance, Ministry of Corporate Affairs, and the Reserve Bank of India (RBI). The National Company Law Tribunal (NCLT) has the authority to adjudicate corporate insolvency cases. The Debt Recovery Tribunal (DRT) handles insolvency cases related to individuals and partnership firms. In the event of a default, a financial creditor, an operational creditor, or the corporate debtor itself can initiate the insolvency resolution process. The Corporate Insolvency Resolution Process (CIRP) must generally be completed within a strict timeframe of 330 days.
