Chapter 4 - Structure of the IBC
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Insolvency and Bankruptcy Code 2016 — Insolvency and Bankruptcy Code 2016.
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Why are Non-Banking Finance Companies excluded from the general applicability of the IBC?
Because the definition of 'Corporate Person' in Section 3(7) excludes any financial service provider, making the Code's provisions inapplicable to NBFCs, Banks, Financial Institutions, Housing Finance Companies, and other Financial Service Providers.
Which section of the IBC excludes financial service providers from the definition of 'Corporate Person'?
Section 3(7) excludes financial service providers from Corporate Person definition.
Which section of the IBC defines 'Corporate Person' and what does it include?
Section 3(7) defines 'Corporate Person' to include a company, a Limited Liability Partnership, or any other person incorporated with limited liability, but explicitly excludes financial service providers.
Which Part of the IBC deals with insolvency resolution and liquidation for corporate persons?
Part II of the IBC deals with corporate insolvency resolution and liquidation.
Under which section can the Central Government extend the provisions of the IBC to specified Financial Service Providers?
Section 227 empowers the Central Government to extend the Code's provisions to specified Financial Service Providers, allowing for case-by-case applicability to entities otherwise excluded.
Which Part of the IBC establishes the IBBI and regulates Insolvency Professionals, IPAs, and IUs?
Part IV establishes the IBBI and regulates IPs, IPAs, and Information Utilities.
What is the primary purpose of the Insolvency and Bankruptcy Code 2016?
The IBC was enacted to consolidate and amend the laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms, and individuals in a time-bound manner to maximise the value of assets and promote entrepreneurship.
Is Part III of the IBC dealing with individuals and partnership firms currently in force?
No, Part III is not yet made effective except for personal guarantors.
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