The Code outlines separate insolvency resolution processes for individuals, companies and partnership firms. The process may be initiated by either the debtor or the creditors. A maximum time limit, for completion of the insolvency resolution process, has been set for corporates and individuals. For companies, the process will have to be completed in 180 days, which may be extended by 90 days, if a majority of the creditors agree.
As many as 40 corporate insolvency resolutions, under the Insolvency and Bankruptcy Code, have been completed, Union Minister P P Chaudhary said on Tuesday.
The Code, which provides for market-determined and time-bound resolution process, is being implemented by the Insolvency and Bankruptcy Board of India (IBBI).
"By December 2017, 40 transactions of corporate insolvency resolution process (CIRP) were completed," the Minister of State for Corp.
A eligible person can become an Insolvency Professional by passing the Limited Insolvency Examination having 10 years experience as: A Chartered Accountant enrolled as a member of the Institute of Chartered Accountants of India.
The Insolvency and Bankruptcy Code envisages early closure of the liquidation process so that the assets of the debtor are released for alternative use expeditiously.