The insolvency resolution process in India has in the past
elaborated the simultaneous operation of several statutory
instruments. This includes the Sick Industrial Companies Act, 1985,
the Securitization and Reconstruction of Financial Assets and
Enforcement of Security Interest, 2002, the Recovery of Debt Due to
Banks and Financial Institution Act, 1993 and the Companies Act,
2013.
The involuntary liquidation provisions in the Insolvency and
Bankruptcy Code, 2016 (“IBC”) came
into effect on 15th December 2016. Along with this, the
Insolvency and Bankruptcy Board of India (Liquidation process)
Regulations 2016 (“Regulations”) were
published and came into effect. These Regulations seek to improve
the Liquidation process with a view to spending less time and costs
in the execution and maximising creditor recoveries. The
Regulations set out the procedural aspects of the new liquidation
processes including appointment, remuneration, powers and functions
of the
