The Insolvency and Bankruptcy Code, 2016 (‘Code’) was enacted by the Parliament with the aim to provide and revamp the framework for insolvency resolution in India in a time bound manner and for the promotion of entrepreneurship, credit availability and balancing of different interests of each and every stakeholder of a Company.
Being a one-stop solution which addresses all insolvencies in a time-bound and economically viable setup, the law has significantly helped India in achieving the historic 30-spot jump in the ease of doing business rankings.
Some of the primary objectives with which the Code has been conceptualized are:
- to consolidate the laws relating to insolvency, reorganization and liquidation/ bankruptcy of all persons, including companies, individuals, partnership firms and Limited Liability Partnerships (LLPs) under one statutory umbrella and amending relevant laws;
- time bound resolution of defaults and seamless implementation of liquidation/ bankruptcy and maximizing asset value;
- to encourage resolution as means of first resort for recovery;
- creating infrastructure which can eradicate inefficiencies involved in bankruptcy process by introducing National Company Law Tribunal (NCLT), Insolvency Resolution Professional Agencies (IPAs), Insolvency Professionals (IPs) and Information Utilities (IUs).
THE FOUR PILLARS OF THE IBC FRAMEWORK
- Adjudication: In the case of insolvency of companies, the adjudication authority is the National Company Law Tribunal (NCLT), while the cases involving individuals and limited liability partnerships are dealt by the Debts Recovery Tribunals (DRTs).
- Insolvency Professional (IP): They play a key role in resolution, liquidation and bankruptcy processes.
- Information Utilities (IU): Electronically store data about lenders.
- Regulator: Insolvency Bankruptcy Board of India.
THE J&P ADVANTAGE
Our Insolvency & Bankruptcy (IBC) Team at J&P will provide legal advice and services for all aspects of the Insolvency law. From documents compiling to the completion of the process our team works with utmost care leaving no potential loopholes. Our IBC Team shall play a vital role in providing appropriate support for Corporate as well as Individual insolvency and bankruptcy procedures and provide sustenance for creditors/debtors during troubled debt recovery in various areas of business.
Enlisted below are some of the services offered by Jain & Partners under Insolvency and Bankruptcy:
- Consultancy on Insolvency and Bankruptcy to Debtors by the expert
- Protagonist and duties as Interim Resolution Professional:
- Manage the Corporate Affairs of the Debtor.
- Determine the Financial status of the Debtor.
- Tutoring financial institutions.
- Executing receipts, Deeds and other important documents of Debtor.
- Execution and the modification of the contracts where required.
- Retrieving electronic Records with useful Information
- Obtain and collate all the claims.
- The makeup of Committee of Creditors and accompanying its Meetings.
- Monitoring the important assets of the Debtor such as Control and Custody of assets with ownership rights.
- Collect the file information with Information Utility, wherever required.
- Raise temporary finance with the endorsement of the Committee of Creditors.
- Determine the Voting share of the Creditors.
- Groundwork of Information Memo.
- Obtain the approval from the Committee of Creditors for actions.
- Analysis of Resolution Plan and obtain the endorsement of the Committee of Creditors.
- Obedience of Resolution Plan to Adjudicating Authority.
- Synchronization with the Insolvency and Bankruptcy Board of India.
- Backing in the extension of the period of Corporate Insolvency Process yonder 180 days.
- Liquidator Services.
- Fast Track Corporate Insolvency & bankruptcy services.
- Demonstrating the Creditor in the meeting of the Committee of Creditors, where such Creditors are the member.