What is INSOLVENCY AND BANKRUPTCY CODE?
Earlier there were scattered laws relating to insolvency and bankruptcy which caused inadequate and ineffective outcomes with unwarranted delays. For example- SARFAESI Act, Companies Act accompanied withIneffective implementation and time-consuming procedures.Insolvency and Bankruptcy Code, 2016 is considered as a breakthrough in the area of insolvency as a part of economic Reforms in India. It was introduced for reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximization of the value of assets of such persons.
The N.K. Verma & Associates as a firm is constituted of a plethora of market leaders specialized in legal areas as well as having banking and financial expertise. We utilize our remarkable knowledge in Insolvency and Bankruptcy proceedings to enable you with enhanced asset value. We swiftly and intelligently move through whole of the Legal Procedures regarding Insolvency and Bankruptcy to enable revival of your company or resolve your Insolvencies in no time. Further, our Online Legal Service Mechanism lets you enjoy results at the comfort of your homes.
Aims of IBC
- Consolidate and amend prevailing laws for insolvency in India.
- To simplify and expedite the Insolvency and Bankruptcy Proceedings.
- To protect the interest of stakeholders in a company.
- To revive the company and resolve insolvencies in a time-bound manner.
- To boom credit in Indian Market by ensuring reliable insolvency and bankruptcy proceedings.
- To set up an I&B Board of India.
- Boosting the asset value of corporates.
Further, the IBC (Amendment) Act seeks to remove impediments and streamline the corporate insolvency resolution process. It also provides protection to new owners of a loan defaulter company against prosecution for the default of previous owners.
Key Aspects of it’s working
- Setting up Insolvency and Bankruptcy board, an independent body for the administration of the Law; and Information Utilities as a reservoir of financial information.
- Transform ‘Debtor in possession’ regime to a ‘Creditor in control’.
- Moratorium period of 180 days (extendable up to 270 days) for the Company. For startups and small companies the resolution time period is 90 days which can be extended by 45 days.
- Providing for qualified Insolvency Professional (IP) as intermediaries to supervise the procedure.
N.K. Verma & Associates' Breakthrough in the area:
We, as a firm, have marked our success in innumberable Insolvency cases resolving them even before being referred to NCLT. The N.K. Verma & Associates team has enabled remarkable Recoveries and realizations of great amounts. Our main aim is to protect the interest of all stake holders from the client’s side and we have been successful in this. Through our Expert Online Service we have plated increased Asset Value for our clients at the solace of their homes.