Insolvency and Bankruptcy Code - Objectives and Procedure

Ancoraa Resolution01 May, 2023Business

IBC came into light, repealing Sick Industrial Companies Act, 1985 (SICA), with effect from 1st December 2016. SICA was the primary rehabilitative statute that allowed a ?sick? industrial firm to voluntarily initiate a rescue and rehabilitation process if its net worth had eroded. Two of the main reasons for its failure were the unending moratorium protection (which was sometimes abused by the debtors in possession) and the absence of a time-bound resolution process.