The Insolvency and Bankruptcy Code, 2016 aims to streamline and expedite the insolvency resolution process, ensuring a fair and equitable distribution of assets among creditors and promoting the revival of viable businesses.

The National Company Law Tribunal (NCLT) is the adjudicating authority responsible for administering the Insolvency and Bankruptcy Code, 2016. It has the power to approve or reject insolvency resolution plans, appoint insolvency professionals, and oversee the insolvency resolution process.

The Insolvency and Bankruptcy Code, 2016 mandates that the insolvency resolution process should be completed within 180 days from the date of admission of the insolvency petition. This time frame can be extended by a maximum of 90 days with the approval of the NCLT.

Both creditors and debtors can file an insolvency petition under the Insolvency and Bankruptcy Code, 2016. Creditors can file a petition if a default occurs on a debt, while debtors can file a petition if they are unable to repay their debts.

The insolvency resolution professional (IRP) is appointed by the NCLT to manage the affairs of the corporate debtor during the insolvency resolution process. The IRP is responsible for assessing the financial position of the debtor, preparing the list of creditors, and facilitating the resolution process.

The Committee of Creditors (CoC) is a body of creditors formed during the insolvency resolution process. The primary role of the CoC is to approve the insolvency resolution plan proposed by the resolution applicant. The CoC also has the power to appoint and remove the insolvency resolution professional.

An insolvency resolution plan can include a combination of elements such as repayment of debts in full, restructuring of debts, sale of assets, and continuation of business operations. The plan must be feasible and provide a better outcome for creditors compared to liquidation.

An insolvency resolution plan must be approved by both the NCLT and the CoC. The NCLT reviews the plan to ensure that it complies with the provisions of the Insolvency and Bankruptcy Code, 2016, while the CoC votes on the plan to determine whether it provides a better outcome for creditors compared to liquidation.

Upon the approval of an insolvency resolution plan, the corporate debtor is discharged from its debts, the management of the corporate debtor is transferred to the new owner, and the creditors receive their dues as per the plan.

The Insolvency and Bankruptcy Board of India (IBBI) is responsible for regulating the insolvency professionals, promoting awareness about the Insolvency and Bankruptcy Code, and developing regulations and guidelines for the insolvency resolution process.

Failing to comply with the provisions of the Insolvency and Bankruptcy Code, 2016 can result in both penalties and fines, as well as imprisonment.

The Insolvency and Bankruptcy Code, 2016 has led to a significant increase in the number of insolvency cases, helped to resolve insolvency cases more quickly and efficiently, and improved the recovery rate for creditors.

The implementation of the Insolvency and Bankruptcy Code, 2016 has faced challenges such as lack of adequate infrastructure and resources, inadequate number of insolvency professionals, and a complex legal and regulatory framework.

Recent amendments to the Insolvency and Bankruptcy Code, 2016 include the introduction of a pre-pack insolvency resolution process, streamlining the process for cross-border insolvency, and increasing the threshold for initiating insolvency proceedings.

The Insolvency and Bankruptcy Code, 2016 has contributed to the ease of doing business in India by making it easier for creditors to recover their dues, for businesses to restructure their debts, and for businesses to exit the market.