Year: 2024 | Month: September | Volume: 11 | Issue: 9 | Pages: 66-73
DOI: https://doi.org/10.52403/ijrr.20240907
Fish or cut Bait: Demystifying the timelines under the Insolvency and Bankruptcy Code
Dr. Sanchita Tewari
Faculty of Law, NUSRL Ranchi
ABSTRACT
The Insolvency and Bankruptcy Code (IBC) of 2016 has revolutionized India’s insolvency landscape by introducing well-defined timelines crucial for expeditious resolution of distressed entities. The study elucidates the significance of these timelines within the IBC framework. Upon initiation of the Corporate Insolvency Resolution Process (CIRP), the National Company Law Tribunal (NCLT) must admit or reject it within fourteen days, averting delays. Within seven days of admission, a Resolution Professional (RP) takes control, ensuring a swift transition. The one-hundred-and-eighty-day timeline shields the debtor from litigation while a resolution plan is devised and approved by the Committee of Creditors (CoC). However, the adherence to the timelines outlined under Section 12 of the Code appears to be lacking or inconsistent considering the recent judgments in the said regard. The current study aims to explore the timeline effectiveness, evolution, and judicial interpretation in insolvency resolution. By utilizing secondary sources, this research delves into the evolution and consequences of IBC’s timelines within insolvency cases. This study further examines how IBC’s strict timelines expedite Indian resolutions, explores amendment effects, anticipates adjustments for emerging challenges, and analyzes court interpretations for coherence.
Keywords: Insolvency and Bankruptcy Code, Timelines, Corporate Insolvency Resolution Process, National Company Law Tribunal, Resolution Professional
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