IBBI Regulations on Insolvency Resolution of Corporate Persons, 2016
Facilitating insolvency resolution of corporate persons under the Insolvency and Bankruptcy Code
Part II of the Insolvency and Bankruptcy Code, 2016 (Code) provides the framework for resolving insolvency of corporate persons. During a corporate insolvency resolution process, the existing management of the corporate debtor loses its control and an independent insolvency professional is appointed by the Adjudicating Authority who is entrusted to manage the operations of the debtor during the process. Further, to preserve the assets of the debtor and to provide a ‘calm period’ for creditors to collectively negotiate with prospective bidders, a moratorium is put in place till the completion of the process. The Code specifically empowers the financial creditors of a corporate debtor undergoing corporate insolvency resolution process to assess the viability of its business and take key commercial decisions, including approving a suitable resolution plan for resolving its distress.
The IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, provide the detailed procedure for conducting a corporate insolvency resolution process. Principally, these regulations lay down the eligibility criteria for appointing resolution professionals, the form and manner of causing a public announcement of initiation of insolvency proceedings, the process of collating and verifying claims filed against the corporate debtor, the process of conducting meetings of the committee of creditors and the procedure for submission of resolution plans by prospective resolution applicants.
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About the Contributors
Debanshu is one of Vidhi’s Co-Founders. He has over a decade of experience in commercial laws and the financial sector and has advised the Government of India on several legislative projects in this space. He was instrumental in advising the Government on the design and drafting of the Insolvency and Bankruptcy Code and its subsequent implementation. He has developed and curated Vidhi’s work on insolvency law, corporate law, financial regulation, and competition law and conceptualized its Bankruptcy Research Program. He has served as a member of a Government-appointed committee for operationalizing the National Company Law Tribunal and deposed before two Parliamentary committees examining financial sector legislation. He has also worked as a teaching fellow at Harvard Law School. He is an alumnus of the Harvard Law School, the University of Oxford, and Hidayatullah National Law University. He attended Harvard as a Fulbright Scholar and was awarded the Irving Oberman Memorial Prize in Bankruptcy and the Dean’s scholar prize in Corporations. He was also awarded a Distinction for his graduate studies at Oxford. In 2017, he was selected for NYU School of Law’s Hauser Global Scholarship, which he waived. His academic work has been published in peer-reviewed journals and an edited book published by Cambridge University Press, New York. He has been consulted by and mentioned in global business publications, such as IFR Asia and The Economist. Earlier, Debanshu practiced as an M&A and regulatory lawyer with AZB & Partners at its Mumbai and New Delhi offices.
Shreya was a Research Fellow at Vidhi.
