The Insolvency and Bankruptcy Code: All you need to know
Distilled Policy Brief
- As of 2015, insolvency resolution in India took an average of 4.3 years, far longer than the United Kingdom (1 year) and the United States (1.5 years).
🎯 Prelims High-Yield Examination Points
Average insolvency resolution time (4.3 years) vs international benchmarks highlights need for reform.
⚖️ Mains Analytical & Syllabus Linkages
Institutional architecture and regulatory challenges of the IBC affect its efficacy.
🎯 UPSC Prelims Practice Drill
According to the Insolvency and Bankruptcy Code, 2016, which authority adjudicates the insolvency resolution process for companies?
- [A] National Companies Law Tribunal (NCLT)
- [B] Debt Recovery Tribunal (DRT)
- [C] Securities and Exchange Board of India (SEBI)
- [D] Competition Commission of India (CCI)
▶ Reveal Official Answer & Analytical Explanation
The Code designates the National Companies Law Tribunal (NCLT) as the adjudicating authority for corporate insolvency cases, while the Debt Recovery Tribunal (DRT) handles individuals. SEBI and CCI are unrelated to insolvency adjudication.
🏛️ Historical Twin PYQ Anchor (2021)
Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.