Full Form of IBC

What is IBC?

The Insolvency and Bankruptcy Code (IBC) is a comprehensive legal framework enacted in India in 2016 to consolidate and amend laws relating to insolvency resolution of corporate persons, partnership firms, and individuals. It replaced earlier fragmented laws such as the Sick Industrial Companies Act and the Recovery of Debt Due to Banks and Financial Institutions Act. The IBC provides a time-bound process (typically 180-330 days) for resolving insolvency through Corporate Insolvency Resolution Process (CIRP) or liquidation if revival fails. It establishes the Insolvency and Bankruptcy Board of India (IBBI) as the regulator, National Company Law Tribunal (NCLT) as the adjudicating authority, and licensed Insolvency Professionals (IPs) who manage the process. The code protects creditors' rights while giving distressed debtors a chance to restructure. It has significantly reduced non-performing assets (NPAs) in the banking sector and improved ease of doing business. For exams like UPSC, CLAT, and banking exams, questions often test provisions, timelines, and the roles of key institutions under IBC.

IBC का फुल फॉर्म

Example

The company was referred to the NCLT under IBC for defaulting on a ₹500 crore loan, initiating the Corporate Insolvency Resolution Process.

IBC — frequently asked questions