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What is insolvency proceedings in India?
The Insolvency and Bankruptcy Code, 2016 (IBC) is the bankruptcy law of India which seeks to consolidate the existing framework by creating a single law for insolvency and bankruptcy. The Insolvency and Bankruptcy Code, 2015 was introduced in Lok Sabha in December 2015. The IBC has 255 sections and 11 Schedules.
What is meaning of insolvency in law?
In accounting, insolvency is the state of being unable to pay the debts, by a person or company (debtor), at maturity; those in a state of insolvency are said to be insolvent. Balance-sheet insolvency is when a person or company does not have enough assets to pay all of their debts.
What area of law is insolvency?
Insolvency law governs the position of businesses and individuals who are in financial difficulties and unable to repay their debts as they become due.
Who files insolvency petition?
An individual can file an insolvency petition if he/she is unable to pay his/her debts on fulfilment of any of the following three conditions: Debts amount to more than Rs. 500. The individual is under arrest or imprisonment in the execution of a money decree.
What is the purpose of IBC?
To consolidate and amend the laws relating to re-organization and insolvency resolution of corporate persons, partnership firms, and individuals. To fix time periods for execution of the law in a time-bound settlement of insolvency (i.e. 180 days).
What is the objective of insolvency law?
The objective of the Insolvency and Bankruptcy Code is to consolidate and amend the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximization of value of assets of such persons, to promote entrepreneurship, availability of …
How do I become a insolvency lawyer?
In order to become a Bankruptcy Lawyer, you will have to complete a bachelor or masters degree in law. The average course fee of a UG degree in law is around Rs. 1.5 lakhs per annum and that of a masters degree is Rs. 2 lakhs per annum.
What is restructuring legal?
When a company is going insolvent or facing another significant problem, corporate restructuring is used to turn the company around. Restructuring is any process that makes a significant modification to the debt, operations, legalities, or structure of a company.
Who can apply for insolvency?
An individual is eligible to become an Insolvency Professional provided, he/she : Is an Indian resident and has attained 18 years of age (Majority). Is of sound mind and a fit person. Is solvent and has not been declared as an insolvent.
Is IBC applicable to Jammu and Kashmir?
Proviso to sub-section (2) of section 1 of the Code has been omitted by the Jammu and Kashmir Reorganisation (Adaptation of Central Laws) Order, 2020 w.e.f. 18.03. 2020. Prior to omission, the proviso stand as: “Provided that Part III of this Code shall not extend to the State of Jammu and Kashmir.”