The Insolvency and Bankruptcy Code, 2016
(IBC) seeks to consolidate the pre 2016 different laws dealing with insolvency
and bankruptcy by creating a single law for addressing the problems of insolvency
and bankruptcy in a time bound manner.
The bankruptcy code is a one stop solution
for resolving insolvencies and issues related with willful default in payments
to creditors by Debtors.
The cases for corporate insolvency
including insolvency of LLPs are submitted by financial or operational
creditors or the corporate debtor itself as the case may be before the
adjudicating authority which is NCLT. The max time allowed to either accept or
reject the plea is 14 days. If the plea is accepted, the tribunal has to appoint
an Insolvency Resolution Professional (IRP) to complete the Corporate
Insolvency resolution process in a time bound manner. If the Corporate
Insolvency resolution process fails, liquidation process will start, which
again needs to be completed in a time bound manner.
Athena Law is representing creditors as
well as debtors before adjudicating authorities as well as before their
appellate authorities.