The enactment of the Insolvency and Bankruptcy Code, 2016 was a game changing move which enabled consolidation of laws in relation to insolvency and bankruptcy proceedings as well as restructuring and resolution process.

The role of Insolvency and Bankruptcy Board of India (IBBI) in the corporate world is a crucial one. While the Insolvency and Bankruptcy Code (IBC) acts as a substantive law in this regards, IBBI carries out the procedural aspects in order to ensure effective observance and implementation of the provisions of the Code.

But people often underestimate the role of IBBI in the Indian corporate environment with respect to insolvency and bankruptcy disputes. The Insolvency and Bankruptcy Code being enacted to consolidate and amend the laws relating to reorganization and insolvency resolution, also established IBBI, which was one of the objectives coupled with several other objectives for its enactment.

The Insolvency and Bankruptcy Board of India was established under Section 188(1) of IBC, on 1st October, 2016. It is a key pillar of the ecosystem responsible for implementation of the Code. IBBI is a unique regulator, as it regulates profession as well as processes. It has regulatory oversight over the Insolvency Resolution Professionals (IRP's), Insolvency Professional Agencies (IPA's), Insolvency Professional Entities and Information Utilities (IU's). It writes and enforces rules for processes, namely, corporate insolvency resolution, corporate liquidation, individual insolvency resolution and individual bankruptcy under the Code.

It has recently been tasked to promote the development of, and regulate, the working and practices of, insolvency professionals, insolvency professional agencies and information utilities and other institutions, in furtherance of the purposes of the Code. IBBI is further entrusted to administer the insolvency and bankruptcy regime in India by performing tasks like registration of insolvency professional's agencies, and certifying and monitoring insolvency resolution professionals. It is also responsible to create information utilities and renew them as and when the case arises.

IBBI also plays the role of governing body for all IRP's, IPA's and IU's. It enacts rules as well as enforces the same to resolve the corporate insolvency, corporate liquidation, individual insolvency and individual bankruptcy as per the provisions of IBC. It helps to implement the provision of the IBC and acts to amend any law under it to suite the current challenges. It works towards resolving any insolvency for corporate individuals and partnership firms in a time bound fashion to maximize the value of insolvent entity and give back the due amount to the creditors.

Features [i]
The features of the board are as follows:
A) It's a body corporate; B) Has a perpetual succession; C) Has a common seal; D) Has powers subject to the provisions of the Code, to acquire, hold, and dispose of property, both movable and immovable; E) Has power to contract; F) Right to sue or be sued.

Constitution [ii]

The Constitution of the board as provided in S. 189 is as follows:

1. Chairperson;
2. Three members from amongst the officers of Central Government, ex officio;
3. One member to be nominated by the Reserve Bank of India, ex officio;
4. Five other members to be nominated by the Central Government.

Powers and Functions [iii]

The powers and functions of the board are provided in S. 196 of IBC. The functions of the board are to regulate the insolvency professional agencies, insolvency professionals and information utility. IBBI functions as a unique body to regulate the profession and transactions. Its regulatory scope falls over the ambit of Insolvency professionals, Insolvency Professional Agencies and Information utilities. The Board makes rules for insolvency related transactions like corporate insolvency resolution process, corporate liquidation process, individual insolvency resolution process and individual bankruptcy as mentioned under the code.

Besides regulation, the Board is also authorized to act as a consolidator and amender of the laws and regulations, pertaining to reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a way that is completed within the given time for the maximization of the value of assets of such persons, to promote entrepreneurship, and to increase the availability credit at the same time, to balance the interests of all the shareholders

End-Notes:

1. Section 188(2) of Insolvency and Bankruptcy Code, 2016
2. Section 189 of Insolvency and Bankruptcy Code, 2016
3. Section 196 of Insolvency and Bankruptcy Code, 2016