Author: Sanyam Gupta, Student at Amity Law School, Noida
Co Author: Shubhi Singla, Student at Amity Law School, Noida
The Insolvency and Bankruptcy Code, 2016 (IBC) in India introduced a comprehensive framework for corporate governance in the context of insolvency and bankruptcy proceedings. The IBC focuses on promoting transparency, accountability, and creditor protection in the insolvency resolution process. It includes several provisions that emphasize the importance of corporate governance and provide guidelines for its implementation.
Also, to improve the relationship between the creditors and the debtors. IBC, 2016 was passed by the Lok Sabha on May 05, 2016 and by the Rajya Sabha on May 11, 2016. It got the assent of the President of India in 2016 and after 6 months in December 2016 IBC got active, On 1st June 2016, National Company Law Tribunal (NCLT) and its appellate body was set up by the government under Companies Act, 2013, to adjudicate disputes in the matters of companies and limited liability partnership, arising under the Act. In case of individuals and partnership, the adjudicating authority will be Debt Recovery Tribunal (DRT), which was established under Recovery of debts due to Banks and Financial Institution Act, 1993.