Professional Documents
Culture Documents
24 SEPTEMBER 2018
Presentation structure
•Pre-IBC phase
•Evolution of IBC
•Performance and Lessons learnt
•Challenges and Path forward
Ministry of Corporate Affairs, GoI 2
Pre-IBC phase: fragmented structure
• Fragmented insolvency resolution framework
• Multiple laws with multiple recovery and resolution mechanisms:
• Sick Industrial Companies Act (SICA) 1985 supported by BIFR & AAIFR
• Recovery of Dues to Banks and Financial Institutions (RDBFI) Act, 1993
supported by DRTs and DRATs
• Securitization and Reconstruction of Financial Assets (SARFAESI) Act, 2002
• Companies Act 2013
• Lok Adalat or “Public Court”, alternative dispute resolution mechanism set up
under Legal Services Authorities Act 1987 with statutory powers of a civil
court
• Absence of collective insolvency law