What Is Insolvency and Bankruptcy Code (IBC)?

The Insolvency and Bankruptcy Code (IBC) 2016 provides a time-bound method for determining insolvency in companies and among individuals. The code saw significant changes when the IBC amendment act 2019 was introduced to solve the pressing issues faced during its implementation

Documents Required

→  Proof of default by the company
→  Information of the resolution professional proposed to act as the interim
→  Special resolution from the shareholders if an application filed by a corporate debtor.

Process Of Registration

→  Filing of an application before the National Company Law Tribunal (NCLT) by a financial creditor.
→  NCLT either approves or rejects the application within 14 days.
→  An interim insolvency resolution professional is appointed who will control the activities of the company.
→  Moratorium takes place until the end of the resolution process, during which the company is prohibited from any operational and financial activity.
→  The interim verify the claim of the creditor.
→  A resolution professional is appointed who will assess the resolution plan.


You may face heavy fines and imprisonment starting at 3-6 months depending on the amount due.

According to the IIA International Professional Practices Framework, the International Standards for the Professional Practice of Internal Auditing (Standards) guides the internal audit profession.

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