File No. 30/20/2020-Insolvency Section Government of India Ministry of Corporate Affairs Dated: 08th January, 2021 NOTICE Invitation of comments from public on Pre-packaged Insolvency Resolution Process under Insolvency and Bankruptcy Code, 2016 The experience from implementation of the Insolvency and Bankruptcy Code, 2016 (the Code) including evolution of the ecosystem, stabilisation of the processes, growing jurisprudence has prepared ground to look at new initiatives to further im..
Background: The Ministry of Corporate Affairs(MCA) vide its notification dated 15th November 2019 brought into force the provisions of the Insolvency and Bankruptcy Code, 2016 in so far as they relate to ‘personal guarantors to corporate debtors' with effect from 01st December 2019. Accordingly, by way of a notification dated 15th November 2019, the Central Government appointed December 1, 2019, as the date on which certain provisions of the IBC, in so far as they relate to pe..
As per IBC, once an entity defaults of payment to creditors, CIRP gets triggered and management of such entity removed by the NCLT. NCLT appointed IRP or RP and all management power assigned to the IRP and RP. IRP and RP run the business and operations of the said entity as a going concern till the insolvency proceeding is over and an order passed by NCLT. As per IBC, 2016, after the commencement of corporate insolvency resolution, a moratorium period is declared during which all suits and le..