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IBC — Insolvency and Bankruptcy Code
India's unified law for time-bound resolution of corporate and personal insolvency, introduced in 2016.
The IBC replaced a fragmented set of insolvency laws and created a single, efficient process. For companies, insolvency proceedings are heard by the NCLT. Once admitted, a moratorium stops all legal actions against the company and an Insolvency Professional manages it while a resolution plan is sought.
The process must be completed within 270 days. If no resolution plan is approved, the company goes into liquidation. The IBC shifted power to creditors — promoters can be removed if a better resolution applicant is found.
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