- Definition: IBC is a law enacted in May 2016.
- It makes it easier to wind up a failing business and recover debts.
- Objectives:
- Promote entrepreneurship and credit availability.
- Balance interests of all stakeholders.
- Consolidate and amend laws for reorganization and insolvency resolution.
- Maximize value of assets in a time-bound manner.
- Key Features:
- Shifts responsibility to creditor to initiate insolvency.
- Time-bound resolution process (180 days, extendable).
- Appointment of Insolvency Professionals (IPs).
- Constitution of Committee of Creditors (CoC).
- Resolution plan or liquidation of assets.
- Four pillars: Insolvency Professionals, Information Utilities, Adjudication (NCLT/DRT), Regulator (IBBI).