Question

Consider the following statements about the insolvency and Bankruptcy Code $2016$:
$1$. The adjudicating authority of the IBC code is RBI.
$2$. IBC code is applicable only to public sector banks.
$3$. IBC code gives power to the RBI to begin insolvency proceedings against defaulters.
Which of the given statement(s) is/are correct?

• A. $1$ and $2$
• B. $2$ only
• C. $2$ and $3$
• D. $3$ only

Answer 1

The correct option is D $3$ only

The IBC, 2016 provides a comprehensive, modern and robust insolvency and bankruptcy regime at par with global standards. Debt Recovery Tribunal (DRT) and National Company Law Tribunal (NCLT) act as Adjudicating Authority and deal with the cases related to insolvency, liquidation, and bankruptcy process. The provisions of the IBC, 2016 are applicable to Individuals, Unlimited Partnership Firms, Limited Liability Partnerships and Companies. The bill empowers the Reserve Bank of India (RBI) to give directions to banks to act against loan defaulters.