Insolvency & Bankruptcy Code
The time-bound framework for resolving corporate insolvency — from admission of a petition through resolution plan approval or liquidation.
The Insolvency and Bankruptcy Code, 2016 replaced a fragmented set of recovery and winding-up laws with a single, time-bound process for resolving corporate insolvency. A resolution professional takes over management, creditors form a committee, and a resolution plan is either approved within statutory timelines or the company moves to liquidation.
Because the Code is adjudicated through the NCLT and NCLAT, a large share of the developing law comes from tribunal and Supreme Court orders interpreting its provisions — on admission thresholds, resolution plan finality, and the treatment of operational versus financial creditors.
Key statutes & provisions
- S. 7, 9, 10Initiation of CIRP by financial creditor, operational creditor, or corporate debtor
- S. 12Time limit for completion of CIRP
- S. 30–31Resolution plan approval and its binding effect
- S. 33Initiation of liquidation