Insolvency and Bankruptcy Code 2016 (IBC)

Subject – Economy

Context – 1,000 appeals under the IBC were pending adjudication as on May 31.

Concept –

IBC was enacted with an object of time-bound resolution of debts.
The IBC created an institution called an information utility to be the repository of information on debts and defaults in India.
The sole utility in India at present is the National E-Governance Services Ltd. (NeSL).
According to the evidence provided by the Ministry of Corporate Affairs to the Parliamentary Standing Committee on Finance in August, NeSL data as of May 31 shows that the number of debtors in India stood at 93.02 lakh. The amount of underlying debt is Rs 136 lakh crore.
Not all creditors report debts and defaults to NeSL as it is not mandatory to file default certificates issued by it with the NCLT while filing petitions to commence corporate insolvency resolution process (CIRP).

To know more about IBC, please click here.