A STUDY OF THE INSTITUTIONAL SET-UP UNDER THE IBC

Abstract

The Insolvency and Bankruptcy Code, 2016 is the second key legal and economic reform in India after GST. IBC was framed to provide time-bound insolvency resolution process, ensure certainty in the insolvency and liquidation processes and address the concerns of both the domestic and foreign creditors by introducing inter-creditor dynamics to realign the existing practices of different creditors. It therefore promotes ease of doing business in India. The objective of the Code provides for the establishment of the Insolvency and Bankruptcy Board of India for the matters of insolvency and bankruptcy of the entities. The IBC creates a novel institutional framework, comprising of, the regulator (IBBI), the appointment of third party professionals (RPs), Information Utilities and adjudicatory mechanisms. The paper studies the role of the new robust institutional framework and a strong cadre of RPs under the Code in achieving its objectives.