Handbook on Understanding the IBC: Key Jurisprudence and Practical Considerations”
Introduction
The Insolvency and Bankruptcy Code, 2016 (Code/IBC) is the umbrella legislation for insolvency resolution of all entities in India—both corporate
and individuals. The provisions relating to insolvency and liquidation of corporate persons came into force on December 1, 2016, while those of insolvency resolution and bankruptcy of personal guarantors to
corporate debtors (CDs) came into effect on December 1, 2019. Insolvency and bankruptcy provisions for other category of individuals are yet to be notified (as on the date of this publication). The aim of codifying
insolvency law is to provide for greater coherence in law and facilitate the application of consistent and lucid provisions to different stakeholders affected by business failure or the inability to pay debt. To this end, the Code repealed the Presidency Towns Insolvency Act, 1909, and the Provincial Insolvency Act, 1920, and made amendments to 11 laws, including the Companies Act, 2013, the Recovery of Debts Due to
Banks and Financial Institutions Act, 1993, and the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, to give effect to the newly codified legislation. The provisions
of the Code are being brought into force in phases.
Objective of Handbook
Insolvency professionals (IPs) are one of the key constituents of the insolvency ecosystem and form the cornerstone of the successful implementation of the law. The principal objective of this Handbook is
to foster the maintenance of the highest standards of professionalism, credibility, independence, objectivity, and expertise in the administration and execution of processes under the law by an IP. This Handbook
has been designed to facilitate knowledge building by providing all the information an IP or a prospective IP would require to function, prepare for acquiring eligibility (insolvency examination), and pursue the career in a beneficial and constructive manner. It either references or reproduces all the laws one needs to know, blending this with practical and best-practice
information essential to someone in the chosen field.
