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ARTICLE · 02 JULY 2020

Section 32A Of The IBC

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Insolvency and Bankruptcy Code (IBC) was enacted on May 28, 2016 to effectively deal with insolvency and bankruptcy of corporate persons, partnership firms and individuals, in a time bound manner.

IndiaInsolvency/Bankruptcy/Re-Structuring
Faranaaz Karbhari
Faranaaz Karbhari
Maaz Hashmi
Maaz Hashmi
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Introduction

  • Insolvency and Bankruptcy Code (IBC) was enacted on May 28, 2016 to effectively deal with insolvency and bankruptcy of corporate persons, partnership firms and individuals, in a time bound manner. It has brought about a paradigm shift in laws relating to insolvency resolution to promote entrepreneurship, maximize value of assets, providing a robust insolvency resolution framework and differentiating between impropriety and business debacle. The predominant object of the Code is resolution of the Corporate Debtor.
  • IBC is a transformational piece of legislation and has been amended four times to resolve problems hindering objectives of the Code.
  • Insolvency and Bankruptcy Code (Second Amendment) Bill, 2019, introduced Section 32A IBC to provide Resolution Applicant, a fair chance to revive Corporate Debtor without imposing additional liabilities on Resolution Applicant arising from malafide acts of prsma

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