- Before IBC, multiple overlapping laws existed (Company Law Boards, DRT, SARFAESI, SICA).
- IBC consolidated and amended these laws.
- The text states that IBC makes it easier to wind up a failing business and recover debts.
- It does not explicitly detail the interaction between IBC and SARFAESI Act.
- However, the 2017 amendments to the Banking Regulation Act authorized RBI to direct insolvency process under IBC.
- This implies IBC is now the primary framework for comprehensive resolution.
The IBC process flowchart Default on Repayment -> Insolvency Resolution initiated by Creditor or Debtor -> Acceptance of insolvency application by NCLT -> NCLT appoints Insolvency Professionals -> Constitution of Committee of Creditors (CoC) -> Resolution Plan submitted by Resolution Professionals to CoC ->
- Resolution (If approved by 66% vote by value of CoC)
- Liquidation (If Resolution Plan is not approved by CoC)