IFC and IBBI release handbook on India's insolvency framework

This is an educational handbook prepared by the International Finance Corporation (IFC) in cooperation with the Insolvency and Bankruptcy Board of India (IBBI) to explain the Insolvency and Bankruptcy Code, 2016 (IBC), its jurisprudence, and practical considerations. It serves as a reference for insolvency professionals and stakeholders to understand the legal framework and processes for corporate insolvency resolution and liquidation.

Who it concerns: Insolvency professionals, prospective insolvency professionals, students of insolvency and bankruptcy, and other stakeholders in the insolvency ecosystem.

What the document says

• The handbook details the four pillars of the insolvency ecosystem and the provisions of law, practices, and case laws regarding corporate insolvency resolution and liquidation.
• It covers the roles of the IBBI as the regulator, Information Utilities, Adjudicating Authorities, and Insolvency Professionals.
• The document outlines the process for initiating Corporate Insolvency Resolution Process (CIRP), including the roles of financial and operational creditors.
• It explains the moratorium, the appointment and duties of the Insolvency Resolution Professional (IRP), and the functions of the Committee of Creditors (CoC).
• The handbook includes sections on the approval of resolution plans, liquidation processes, and the overriding effect of the Code.
• The IBC has witnessed five legislative interventions since its enactment to strengthen processes and align with market realities.

Also in the document

• The handbook was prepared under a Cooperation Agreement between the IBBI and the IFC (a member of the World Bank Group) entered into in 2019.
• The IFC received funding support from the Government of Japan for the development of this handbook.
• The document notes that the IBC has strengthened the ability of stakeholders to maximize recovery through India’s insolvency regime.
• The handbook is explicitly designed for the sole purpose of education.