Insolvency Resolution Process Under IBC Becomes Operational

On 1st December 2016, the Ministry of Corporate Affairs (MCA), Government of India (GOI) notified the provisions relating to the corporate resolution process under the Insolvency & Bankruptcy Code 2016 (IBC).  The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 were also notified on 30th November 2016. In a separate notification, the GOI repealed the provisions of Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). As a result the matters pending before BIFR and AAIFR under SICA abated.

Earlier, the GOI had notified Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 with effect from 29th November 2016 and Insolvency and Bankruptcy Board of India (Insolvency Professionals Agencies) Regulations, 2016 were notified with effect from 21st November 2016.