Legal means


The Insolvency and Bankruptcy Code also called IBC came in 2016. This is a step forward which helps in the settling of the legal position with respect to the financial failures along with the insolvency. This code helped in providing an easy exit without a painful mechanism for the cases of insolvency of both individuals and comPANies. The IBC has significant values for all the stakeholders inclusive of the Government Regulators. 


The intention of the IBC

The Insolvency and Bankruptcy Code’s sole intention is to provide a balance between:

The interest of the stakeholders of the Company, so that they can have the availability of the credit of the firm

The loss such that a creditor doesn’t have to on the account of the default


Applicability of the IBC Code

The IBC code is applicable for insolvency, voluntary liquidation, liquidation or bankruptcy of the following bodies:


If any Company is incorporated under the ComPANies Act, 2013 or is incorporated under any previous law.

Any other Company which has been governed by any Special Act for the time being in force, except in so far as the said provision has been inconsistent with the provisions of any form of such Special Act.

Any Limited Liability Partnership under the LLP Act 2008.

If any other body which is being incorporated under any other kind of law for the time being in force which in turn has been specified by the Central Government in this regard

Any Partnership firms and/or individuals

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FAQ - Frequently asked questions

When does the Insolvency and Bankruptcy Code (IBC) apply?

The Insolvency and Bankruptcy code at present can only be triggered if there is a minimum default of Rs 1 lakh. This process can be triggered by way of filing an application before the National Company Law Tribunal (NCLT).

Who is an insolvency professional (IP)?

As per the Insolvency and Bankruptcy Code, 2016 (the Code), an insolvency professional (IP) means an eligible person: a. enrolled with an insolvency professional agency (IPA) as its member and, b. registered with Insolvency and Bankruptcy Board of India (the Board) as an insolvency professional (IP).

What is Corporate Insolvency Resolution Process (CIRP)?

The CIRP may include necessary steps to revive the company such as raising fresh funds for operation, looking for the new buyer to sell the company as going concerned.

Will Limitation Period apply in IBC?

The Limitation period has been made applicable by the insertion of section 238A in the IBC.