As you may be aware that a new Insolvency and Bankruptcy Code ,2016 has been enacted. It provides “RESOLUTION OF DEFAULT” in payment to lenders very fast process to settle the matter in 180 days. The Government as well as RBI are pressing hard to lending Banks to settle their dues through this code. The lending banks have already started issuing Notice to borrowers to take action to settle their defaulted Accounts. Under this code Registered Insolvency Professionals (IP) have a pivotal role to Resolve the defaulted Loan. We are a group of professionals and One of our founder director (Advocate Ashok Juneja) is also Registered as Insolvency Professioal (IP) with Insolvency and Bankruptcy Board of India as Insolvency Professional (IBBI) Attached is PP on new code. You are free to contact us if you have any query/ clarification

1. THE INSOLVENCY AND
BANKRUPTCY CODE, 2016
PRESENTATION BY:-
ADVOCATE ASHOK JUNEJA
(LLB, FCS, ACMA, DBF, ADICA, M.COM)
A REGISTERED INSOLVENCY PROFESSIONAL WITH
INSOLVENCY & BANKRUPTCY BOARD OF INDIA (IBBI)
MANAGING PARTNER
MANTRAH LAW HOUSE LLP
1302, Vijaya Building,
17 Barakhamba Road, Connaught Place, New Delhi-110001
Mobile No: +91-9810532462, 9711361479
Landline No: 011-41563467/ 43011969
Email: ashokjuneja@gmail.com

2. Object:
The Object of the present Insolvency and Bankruptcy Code (IBC), 2016 is to
consolidate the existing framework by creating a single law for Insolvency and
Bankruptcy.
It has replaced the long Tedious and Complex Legal Process by a speedy, expeditious
and effective mechanism for recovery of dues from corporate and non-corporate sector.
Earlier Mechanisms
Companies Act,2013
Companies Act,1956
The recovery of debts due to banks and financial
institutions act,1993
SARFAESI Act,2002
The Sick Industrial Companies (Special
Provisions) Act, 1985
The Presidency Towns Insolvency Act,1909
The Provincial Insolvency Act,1920
CDR/SDR/S4A
ARC
New Mechanisms
The Insolvency and Bankruptcy Code,2016
The Insolvency and Bankruptcy Code, 2016
will replace the existing laws pertaining to
Insolvency and Bankruptcy
The Insolvency and Bankruptcy Code, 2016

3. Insolvency and Bankruptcy Ecosystem
Insolvency and Bankruptcy Board of India
Insolvency Professional Agency
Information Utility
Adjudicating Authority
Insolvency Professionals (IP)
Insolvency and Bankruptcy
Board of India (IBBI)
• IBBI is an apex body governing
Insolvency and Bankruptcy Code.
• It is setting up the necessary
infrastructure and accredit
Insolvency Professionals (IPs) and
Information Utilities (IUs)
Insolvency Professionals (IPs)
•IPs are licensed professionals
registered with IBBI who act as
resolution professional/ liquidator/
bankruptcy trustee in an insolvency
resolution process.
Information Utilities
• Information Utilities
would collect, store and
distribute information
related to the
indebtedness of
Companies
Insolvency Professional Agency
• Insolvency Professional Agencies (IPAs) are
enrolling insolvency professionals as members.
• Currently there are three IPAs:
(i) ICSI Insolvency professional Agency
(ii) Indian Institute of Insolvency Professionals of ICAI
(iii) Insolvency professional Agency of Institute of cost
Accountants of India
Adjudicating Authority
•Adjudicating Authorities (AA) have the
exclusive jurisdiction to deal with insolvency
related matters.
•National Company Law Tribunal (NCLT) is the
AA for Corporate and LLP insolvency
•Debt Recovery Tribunal (DRT) would be AA
for individual or partnership Firms insolvency.
NCLT DRT

4. Salient features of the Insolvency and Bankruptcy Code
Exclusive Jurisdiction of Adjudicating Authority
Adjudicating Authority (NCLT and DRT) will have excusive jurisdiction in insolvency related
matters. No injunction can be granted by any Civil Court, Tribunal or Authority in respect to action
taken by Adjudicating Authority.
Committee of Creditors
A committee of creditors is formed and it will work intendem with Insolvency Professional.
Time-bound Resolution Process
The entire process should be completed in 180 days (270 days in case of extension).
Appointment of Registered IPs
The board of directions are suspended and creditor approved resolution professional is appointed to
manage the Company as a going concern.
Duties and Functions of Insolvency Professional (IP)
• To make a public announcement of Insolvency process in English and Local Language Newspaper.
•To manage the affairs of the company as a going concern;
•To collect information relating to the assets, finances and operations of corporate debtor for
determining the financial position;
•To collect all claims received from creditors and assess them.
•To constitute a committee of creditors (COC) etc.
•To appoint two registered Valuers to evaluate the assets.
•To coordinate with NCLT and IBBI.

5. Corporate Insolvency Resolution Process (CIRP)
Default
Failure to pay whole or any part or
installment of the amount of debt or interest
due (min INR 1 Lakh)
Who Can File the Application
•Financial creditors
•Operational creditors (including
government & employees or workmen)
•Corporate debtor, member, partner, person
in charge of operations or finance
Interim Resolution Professional /
Resolution Professional (IRP/RP)
• Financial creditor and/or corporate applicant
shall propose the name of an IP in the
application
•It is optional for the operational creditor to
propose the name of an interim IP
•All powers of the board and management
shall vest with the IRP/IP
• IP is responsible to run the company as a
going conmsern during CIRP.
Approve or
Reject petition
within 14 days
Appointment to
be confirmed
within 30 days.
Appoint the Interim Resolution
Professional
The Adjudication Authority
File Application
Default

6. Corporate Insolvency Resolution Process (CIRP)
Committee of Creditors
•Usually consists of financial creditors
•Operational creditors to constitute committee
when there are no financial creditors or all of them
are related to corporate debtor
•Will confirm or replace IRP as RP
•To approve several actions of RP
Resolution Plan
The resolution plan must provide for operational
creditors (including government & employees or
workmen)
•Payment of insolvency resolution process costs
•Repayment of the debts of operational creditors
•Management of the affairs of the borrower after
plan is approved
•Implementation and supervision of the approved
plan.
Voting Power
•Only financial creditors have voting power in the
committee in the ratio of debt owed.
•All decisions of the committee shall be approved by
75% of financial creditors/ operational creditors, as
the case may be.
Continue
Formation of Committee of
creditors (CoC)
Appointment of Interim
Resolution Professional
confirmed by the CoC
Preparation of
Resolution plan
75% of the
creditors to
Approve plan
No
Yes
Application for
AA approval
Implement the
resolution plan
Compulsory
Liquidation if
resolution is
not agreed
within 180
days /
extended
period.

7. Liquidator
• The IP shall act as the liquidator
•The liquidator shall appoint two registered valuers to evaluate the assets &
consolidate, verify, admit and determine value of creditor’s claims
Order of Priority for Distribution of Assets
• Insolvency resolution process and liquidation costs
•Workmen dues up to 24 months and Secured Creditors who have relinquished the
enforcement of their Security.
•Employees’ salaries/ dues up to 12 months
• Financial debts (unsecured creditors)
•Government dues ( up to 2 Years)/ amounts remaining unpaid following
enforcement of security interest by secured creditors.
• Any remaining debts and dues
• Preference Shareholders
• Equity Shareholders
Initiation:
Failure to submit resolution plan within specified days will cause initiation of
Liquidation of Corporation Debtor.

8. For Any Query/ Clarification
Please Contact us:
ADVOCATE ASHOK JUNEJA
(LLB, FCS, ACMA, DBF, ADICA, M.COM)
A REGISTERED INSOLVENCY PROFESSIONAL WITH
INSOLVENCY & BANKRUPTCY BOARD OF INDIA (IBBI)
MANAGING PARTNER
MANTRAH LAW HOUSE LLP
1302, Vijaya Building,
17 Barakhamba Road, Connaught Place, New Delhi-110001
Mobile No: +91-9810532462, 9711361479
Landline No: 011-41563467/ 43011969
Email: ashokjuneja@gmail.com