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Insolvency Resolution Process under IBC

Insolvency Resolution process under the IBC 2016 has made the process of resolving insolvency in q quick fashion. You can know more about it at Registrationwala.

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Insolvency Resolution Process under IBC

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  1. Presented By: Registrationwala

  2. The Need of Insolvency Resolution To resolve insolvency quickly.  To make sure that creditors are paid properly.  To approach resolution. provide a streamlined insolvency  to

  3. Conductor of Insolvency Resolution The process of insolvency resolution is conducted by the Insolvency professional. This professional is Interim in nature and is appointed by IBBI or Insolvency and Bankruptcy Board in India.

  4. Initiator of Insolvency Resolution Process  The insolvency resolution process can be initiated by: The operational or financial creditors.   Under some conditions, this process can also be initiated by:  Corporate debtors as well.

  5. Process If Insolvency Resolution Creditor Sends A Demand Notice Insolvency Resolution Requested Payment Default Debtor Response Insolvency Plan Formulated NCLT CoC Information Utility Appoints IP Appointed CoC NCLT Sees the Plan Votes on Plan

  6. 1. Payment Default A payment default is committed: The debtor commits a default where they fail to pay their debts on time. 

  7. 2. Creditor Sends A Demand Notice  The creditor sends a demand notice to the debtor: Under section 8 of the Insolvency and Bankruptcy Act, the debtor can send a demand notice to the debtor.

  8. 3. Debtor Response The debtor has 10 days to respond to the demand notice. They either have to show:  No response. The debt is paid. The debt is in dispute.

  9. 4. Insolvency Resolution Requested No/bad response -> insolvency resolution requested : A petition of insolvency resolution is filed under section 9 of IBC act. 

  10. 5. NCLT Appoints IP professional: The national NCLT company law tribunal appoints an insolvency professional to conduct the process. appoints an Insolvency 

  11. 6. CoC Appointed Committee of Creditors appointed: Creditors choose their representatives to form a committee of creditors. 

  12. 7. Information Utility Information extracted from information utility : The Insolvency professional extracts the financial information of the debtor. 

  13. 8. Insolvency Plan Formulated Insolvency professional formulates a plan: The insolvency professional formulates an insolvency resolution plan.  resolution

  14. 9. NCLT Sees the Plan Insolvency professional formulates a plan: The insolvency resolution professional formulates an insolvency resolution plan.  NCLT

  15. 10. CoC Votes on Plan The creditor committee can vote for or against the plan:  If the creditor committee vote for the plan -> Resolution  If the creditor committee vote against the plan -> Liquidation. 

  16. Insolvency Resolution Process Time Time taken for the complete Insolvency resolution process tends to be different on the basis of size of the companies: For Large Companies:  For big companies, the process takes 180 days.  This date can be extended to 270 days for a single time.  For Small companies:  For small companies, the process takes 90 days.  This date can be extended to 135 days for a single time. 

  17. Contact Us +91-8882-580-580 support@registrationwala.com www.registrationwala.com

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