INSOLVENCY CODE: regulates insolvency professionals and insolvency professional agencies

This code consolidates and amend laws relating to reorganization and insolvency resolution. The existing legal system and remedies under SICA, SARFAESI, Winding Up, Suits, Arbitration are all inadequate, ineffective and cause undue delays in recovery and resolution. Consolidating the functions of four di%erent forums i.e. High Courts, CLB(already replaced with NCLT), BIFR and the DRTs, having overlapping jurisdiction, leading to the systemic delays and complexities in the process. The Code overcomes these challenges and would reduce burden on the Courts as all litigations will be /led under the Code before NCLT(adjudicating authority under the code for corporate(companies and LLPS) insolvency and liquidation).
The company Secretaries in practice can practice under the code
i For individual insolvency
ii Corporate Insolvency Resolution Process and
iii Liquidation of companies
As per the reported data there are about one lakh cases pending
before DRT and about 900 cases before SICA and more than 5000
winding up cases pending, I see a lot of scope for Company
The Insolvency Regulator (The Insolvency and Bankruptcy Board of
India) exercises regulatory oversight over
Insolvency Professionals,
Insolvency Professional Agencies and
Information Utilities.
The code regulates insolvency professionals and insolvency professional
agencies. Under Regulator’s oversight, these agencies will develop
professional standards, codes of ethics and exercise a disciplinary role
over errant members leading to the development of a competitive
industry for insolvency professionals