#Role of ibbi

The Insolvency and Bankruptcy Code, 2016 which was enacted by the Indian Parliament to
consolidate and amend the existing laws relating to insolvency and bankruptcy in the country,
established the Insolvency and Bankruptcy Board of India (IBBI) in the year 2016.
The Insolvency and Bankruptcy Board of India (IBBI) is a very crucial authority. It oversees
both professions and transactions. IBBI is responsible for implementing the IBC and
amending legislation for insolvency resolution of corporate people, partnership companies,
and individuals in a timely way in order to maximize the worth of such a person’s assets.
Its main functions include registering insolvency professionals and insolvency professional
agencies, regulating the insolvency process, and promoting the development of an efficient
insolvency system in India.The IBBI also encourages credit availability, entrepreneurship,
and the balance of all shareholders’ interests. The main agenda of the Insolvency and
Bankruptcy Board of India (IBBI) was to improve the bankruptcy regime of the country. The
IBBI is the main pillar in the implementation of the IBC.

CONSTITUTION OF THE BOARD

The headquarter of the IBBI is at New Delhi, which is headed by the chairman of the board.
All the members of the board are appointed by the Central Government. The board in total
consists of 10 members.
-One of them is the chairperson of the IBBI.
-Another person is a member nominated by The Reserve Board of India (RBI), ex- officio.
-Three members are officers of the Central Government who are equivalent or not below the
rank of a Joint Secretary. Each of these three members will represent the Ministry of Law,
Ministry of Finance, and Ministry of Corporate Affairs, ex-officio.
-The other five members are nominated by the central government, out of which at least three
should be working as whole-time members.

The term of office for the Chairperson and other members (other than the ex-officio
members) is five years or until they attain the age of sixty-five (65), whichever is earlier.
The re-appointment of the members is also eligible.

POWERS AND FUNCTIONS OF IBBI

1. IBBI facilitates the development and regulation of practices and working methods of the
insolvency professions, insolvency agencies, information utilities, and other institutions.
2. IBBI also levies charges or fees for registration and renewal of the insolvency professions,
insolvency agencies, and information utilities.
3. The minimum eligibility requirements for the registering insolvency professions,
insolvency agencies, and information utilities are registered, suspended, renewed, withdrawn,
cancelled or specified by IBBI.
4. IBBI also specifies the standards and the regulation which are required for the function of
the insolvency professions, insolvency agencies, and information utilities.
5. The Minimum curricula for the examination of bankruptcy professionals for enrollment in
insolvency professional organizations are also laid down in the IBBI.
6. The guidelines and the regulations on matters which are related to bankruptcy and
insolvency required under the IBC are also made by IBBI.
7. The mechanism for the redressal of grievances against the insolvency professions,
insolvency agencies, and information utilities is specified by IBBI. The orders passed relating
to the complaints filed against them, and are complied with the provisions of IBC and the
regulations.
8. IBBI also issues guidelines for the timely disposition of corporate debtor/debtor assets.
9. The IBBI has the power to impose penalties, fines, and sanctions on individuals and
entities that violate the provisions of the IBC or the rules and regulations issued by the IBBI
10. It also has the power to initiate legal proceedings against such individuals and entities in
appropriate cases.
11. The grounds on which the insolvency professional can be expelled from their membership
of insolvency professional agencies are also given by IBBI.
12. Conduct research and studies on matters related to insolvency and bankruptcy.
13. Promote public awareness of the insolvency and bankruptcy laws and processes in India.
14. Investigate any misconduct by insolvency professionals and take necessary disciplinary
action.
15. The IBBI also designates members to the different committees and panels established
under the IBC, such as the establishment of a governing board for the administration and
internal governance of insolvency professional agencies.
16. The Insolvency and Bankruptcy Board of India (IBBI) also provides guidance and
assistance to insolvency professionals and other stakeholders involved in the insolvency and
bankruptcy process.
17. IBBI monitors and reviews the work of the insolvency professional who are the members.
18. The Insolvency and Bankruptcy Board of India (IBBI) also specifies the particular classes
for the people who will receive services at concessional rates.
19. The Insolvency and Bankruptcy Board of India (IBBI) also may exercise the powers
which are vested in a civil court under the Civil procedure code, 1908, along with exercising
the powers under the IBC.

It can enforce and summon the attendance of the person/persons and their examination on
oath.

The Board can ask to produce and discover the book of accounts and other documents, at
such time as specified by the board.

The board can also inspect any books, documents, or registers of any persons at any place.

Conclusion:

The IBBI’s regulatory oversight helps ensure that insolvency professionals and information
utilities operate in a transparent and fair manner, which is essential for the smooth
functioning of the insolvency and bankruptcy process in India. This, in turn, helps protect the
interests of all stakeholders involved in the process, including creditors, debtors, and
investors.
In addition, the IBBI’s efforts to promote public awareness of the insolvency and bankruptcy
laws and processes in India help encourage entrepreneurship and facilitate the resolution of
insolvencies in a timely and efficient manner. This helps foster a more conducive business
environment in India and ultimately benefits the economy as a whole.
Overall, the role of the IBBI is to ensure that the insolvency and bankruptcy laws in India are
implemented in a fair and transparent manner and to support the development of a healthy
and functional insolvency system in the country.

#Can nclt wind up a company?

-winding up of a company-
The process of ending the life of a company by administering its properties for the benefit of
shareholders & creditors of the company is known as winding up of a company.
According to Section 270 of the Act, a company can be wound up by either of the two modes.
These are:
Winding up by the Tribunal ( NCLT)/ Compulsory winding-up

Voluntary winding up of a company

Chapter XX of the Companies Act, 2013 deals with the winding up of a company. Part I
provides for winding up by the tribunal, while Part II provides provisions for the voluntary
winding up of a company. However, Part II has been omitted by the Insolvency and
Bankruptcy Code, 2016.

Section 271 of the Companies Act, 2013 provides for the circumstances under which a
company may be wound up by the National Company law Tribunal.

- Winding up by tribunal is a type of compulsory winding up that is initiated by an external

entity, such as a creditor, and is usually done through a tribunal. The tribunal is a judicial
body that has the power to order the winding up of a company on various grounds, such as:
-
1. The company is unable to pay its debts.
2. The company's actions have been detrimental to public order, decency or morality, the
security of the state, friendly relations with foreign states, and India's sovereignty and
integrity.
3. The company has been conducting its affairs in a fraudulent or unlawful manner.
4. The company has made a default in filing its financial statements or annual returns for five
consecutive financial years.
5. The company has been ordered to be wound up by a tribunal under any other law for the
time being in force.
6. The tribunal is of the opinion that it is just and equitable that the company should be
wound up. (In the case of Hindustan Construction Company Ltd. v. State of Maharashtra[11],
the Supreme Court held that the provisions of the Companies Act, 1956 relating to winding
up of a company by the court were applicable to winding up of a company by the Tribunal
under the Companies Act, 2013. The court also held that a company can be wound up by the
Tribunal if it is just and equitable to do so.)

The tribunal can also order the winding up of a company on the application of the Registrar
of Companies, the Central Government, the State Government, or a person authorized by the
Central Government.
The tribunal can appoint a provisional liquidator or a company liquidator to take charge of
the company’s affairs and assets, and to carry out the winding up process. The tribunal can
also supervise the winding up process and give directions to the liquidator as it deems fit.
The tribunal can also make orders for the dissolution of the company, the distribution of the
assets, the settlement of claims, the audit of accounts, and the disposal of records.

The process of winding up by the Tribunal begins with the filing of a petition before the
NCLT. The petition can be filed by the company, any creditor or creditors, any contributory
or contributories or any person authorized by the Central Government. The petition must be
supported by an affidavit verifying the facts stated in the petition. If the NCLT is satisfied
that the company should be wound up, it may make an order for winding up the company.
The order will be deemed to have been made at the time of the presentation of the petition.
The order will be published in the Official Gazette and also in a newspaper in the district
where the registered office of the company is situated. Once the order for winding up is
made, the company shall cease to carry on its business, except in so far as is required for the
beneficial winding up.