Brief Introduction to the CodeThe IBC came into force with the Government notification on 28 May 2016. The Act consolidates and amends the existing laws in this regard liquidation and insolvency of companies, partnerships and individuals in a time-limited manner. In the interest of stakeholders and creditors, IBC aims to ensure smoother resolution of insolvency cases. Prior to this code, there was no single law governing insolvency and bankruptcy in India. Few acts and laws used to handle cases of liquidation and insolvency of companies, firms and individuals existing before the IBC Code are the Sick Industrial Companies (Special Provisions) Act - SICA, 1985, The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI), 2002, Recovery of Debts Due to Banks and Financial Institutions Act, 1993, Companies Act, 2013. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay. Other laws for partnerships and individual insolvencies, such as individual cases, were dealt with under the Presidency Towns Insolvency Act and the Provisional Insolvency Act. The liquidation of companies was handled by the High Courts. The code consolidates all these insolvency and liquidation procedures for individuals, companies and businesses and provides a single platform for resolution. The adjudicating authority of the IBC ecosystemA body that would have exclusive jurisdiction to deal with the insolvency related matter and can entertain or dispose of any insolvency application, approve or reject resolution plans and can decide on claims or other matters. Insolvency and Bankruptcy Council of India A body comprising members including a representative of MCA, MoF and RBI and would regulate the appointment of insolvency professionals, information utilities and promote transparency and governance in the administration of the code. Information utilities Professional bodies registered with the council who would collect, maintain and provide information relating to companies' indebtedness. Professional Insolvency Agency A body that would admit insolvency professionals as members and develop a code of conduct and promote transparency, best practice and governance. The CoC is made up of financial creditors who will nominate, supervise and approve the action of the resolution professionals. The code requires all classes of creditors (financial, operational, regulatory authorities) to initiate a resolution process in case of default by submitting an application to the NCLT. The code provides for immediate suspension of the powers of the board of directors and promoters and requires the insolvency professional to take control of the debtor company. The main reason behind the dissolution of the Board of Directors and promoters and handover of management to the RP is to prevent mismanagement of the corporate debtor which could possibly be detrimental to the interests of its creditors and stakeholders during the process of Corporate Insolvency Resolution (CIRP). . RP is expected to take measures to protect and preserve the debtor company's stake and manage its operations on a going concern basis. The code provides 180 days for the resolution process with an extension of 90 days to inculcate a balanced approach between rehabilitation and recovery of the debtor. the health of the corporate debtor and provides for mandatory liquidation in case the resolution plan fails.