Introduction to Insolvency and Bankruptcy Code 2016
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In what year was the Insolvency and Bankruptcy Code enacted, and what was its primary objective?
The Insolvency and Bankruptcy Code (IBC) was enacted in 2016 to consolidate and amend laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms, and individuals in a time-bound manner.
Under which section of IBC 2016 is the Corporate Insolvency Resolution Process initiated?
Section 7 for financial creditors, Section 9 for operational creditors
Which regulatory authority oversees the implementation of the Insolvency and Bankruptcy Code 2016?
The Insolvency and Bankruptcy Board of India (IBBI) was established under the IBC 2016 as the apex regulatory body to oversee insolvency professionals, insolvency professional agencies, and information utilities.
What is the initial time limit for completing CIRP under IBC 2016?
180 days from the date of admission
What is the maximum time limit prescribed under IBC 2016 for completion of the Corporate Insolvency Resolution Process (CIRP)?
The CIRP must be completed within 180 days from the date of admission of the application, extendable by a maximum of 90 days, and subject to an overall cap of 330 days including litigation time.
By how many days can the CIRP period be extended by NCLT under IBC 2016?
Extended by 90 days, totalling 270 days maximum
Who can initiate Corporate Insolvency Resolution Process (CIRP) under the IBC 2016?
CIRP can be initiated by a financial creditor, an operational creditor, or the corporate debtor itself (voluntarily), by filing an application before the National Company Law Tribunal (NCLT).
What is the minimum voting share required for a resolution applicant to be eligible under IBC?
66% vote of the Committee of Creditors
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