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
