Resolution of stressed assets under insolvency and bankruptcy code 2016_2
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What is the primary objective of the Insolvency and Bankruptcy Code (IBC) 2016 in the context of stressed asset resolution?
The primary objective is to provide a time-bound, market-driven process for resolving insolvency of corporate debtors, maximising asset value and promoting credit availability while balancing the interests of all stakeholders.
What is the full form of IBC as applicable to stressed asset resolution?
Insolvency and Bankruptcy Code enacted in 2016.
Which authority is the adjudicating authority for corporate insolvency resolution under IBC 2016?
The National Company Law Tribunal (NCLT) is the adjudicating authority for corporate insolvency resolution proceedings (CIRP) under IBC 2016.
Under IBC 2016, what is the minimum number of days for the moratorium period during CIRP?
Moratorium lasts throughout CIRP up to 180 days.
What is the time limit prescribed for completion of the Corporate Insolvency Resolution Process (CIRP) under IBC 2016?
CIRP must be completed within 180 days from the insolvency commencement date, extendable by 90 days in exceptional circumstances, with an overall cap of 330 days including litigation time.
What is the maximum extension permitted for CIRP beyond the initial 180-day period?
Maximum 90 additional days extension is allowed.
Who can initiate the Corporate Insolvency Resolution Process (CIRP) against a corporate debtor?
CIRP can be initiated by a financial creditor, operational creditor, or the corporate debtor itself upon default of a debt of at least Rs. 1 crore (revised threshold).
What is the overall time limit including extensions for completing CIRP under IBC?
Total 330 days including litigation periods.
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