The Insolvency and Bankruptcy Code, 2016, is a law bringing together various earlier laws and regimes whereby a company in financial distress or difficulty could be admitted into Corporate Insolvency Resolution Process (CIRP) upon a case filed by an operational (typically unsecured trade creditor) or financial creditor (banks, NBFCs, lenders) or by itself. The insolvency resolution process is time-bound and was originally to be completed within 270 days; it was extended by an amendment to 330 days on August 6, 2019.
During this period, the board of the company remains suspended, the promoters technically lose their position/influence and the company is under the administration and management of an Insolvency Professional (IP) (…
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