NPA settlement

 

What is the purpose of the IBC? 


  • It works towards protecting the interests of creditors.
  • It works towards helping creditors who have been waiting for the payments for a long time.
  • It works towards reviving the company.

Apart from that, IBC also promoted entrepreneurship. It also creates a new and timely recovery procedure that can be adopted by banks, individuals, and financial institutions.

Who can file an application under IBC?

To initiate the insolvency process, financial creditors, operational creditors, and corporate debtors can file a petition in front of the National Company Law Tribunal or NCLT.

Companies have up to 180 days to complete the insolvency exercise under the IBC. But the deadline can be extended if the creditors do not object to it.

The IBC proceedings are regulated by the Insolvency and Bankruptcy Board of India (IBBI).  This board has 10 members from the Law Ministry, Finance Ministry, and the Reserve Bank of India to administer the proceedings.

IBC is an important step in limiting and regulating npa in india.

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