Insolvency and Bankruptcy Code (IBC) 2016
Structure and Purpose
The Insolvency and Bankruptcy Code (IBC), 2016 consolidated a fragmented insolvency regime that previously spanned the Companies Act (2013), SARFAESI Act (2002), RDDBFI Act (1993), and the Sick Industrial Companies Act (SICA, 1985). The IBC created a single, time-bound, creditor-led resolution mechanism. Under the Corporate Insolvency Resolution Process (CIRP), a financial creditor (Section 7), operational creditor (Section 9), or the corporate debtor itself (Section 10) can initiate proceedings before the National Company Law Tribunal (NCLT). A moratorium is declared upon admission, suspending all legal actions against the debtor. The Committee of Creditors (CoC) — comprising financial creditors — then manages the process.
- IBC enacted: May 2016; it replaced or amended 11 previous laws.
- CIRP timeline under Section 12: 180 days from admission, extendable by 90 days (one-time), with an absolute outer limit of 330 days.
- CoC approval threshold: 66% of voting shares (reduced from 75% by 2019 amendment).
- Adjudicating Authority: NCLT (National Company Law Tribunal) for corporate insolvency.
- IBBI (Insolvency and Bankruptcy Board of India): the regulator, established under IBC Section 188.
- If no resolution plan is approved within the timeline, the company goes into liquidation.
● Tracked since March 10, 2026 · last seen June 15, 2026 · updates as the daily brief publishes