The Insolvency and Bankruptcy Board of India (IBBI) is a statutory institution and a unique regulator established under the Insolvency and Bankruptcy Code, 2016 (IBC). It was formally established on October 1, 2016, under the parent department of the Ministry of Corporate Affairs.
The IBBI was created to solve the problem of a fragmented and inefficient insolvency regime, which was previously governed by multiple laws like the Sick Industrial Companies (Special Provisions) Act, 1985. The IBC, passed by the Lok Sabha on May 5, 2016, consolidated these laws to provide a unified, time-bound mechanism for the reorganisation and insolvency resolution of corporate persons, partnership firms, and individuals.
The IBBI works by writing and enforcing rules for processes such as the Corporate Insolvency Resolution Process (CIRP), corporate liquidation, and individual bankruptcy. A key mechanism under the IBC is the shift of control from the debtor's promoters to a Committee of Creditors (CoC) upon default. The CIRP for companies must be completed in a time-bound manner, originally 180 days, extendable by 90 days. The Insolvency and Bankruptcy Code (Amendment) Act, 2019, later increased the mandatory upper time limit to 330 days, including time spent in legal processes.
The IBBI connects to the entire insolvency ecosystem, having regulatory oversight over Insolvency Professionals (IPs), Insolvency Professional Agencies (IPAs), and Information Utilities (IUs). The resolution process is adjudicated by the National Company Law Tribunal (NCLT) and the Debt Recovery Tribunal (DRT). A recent change occurred in April 2021, when the IBBI notified regulations for a pre-packaged insolvency resolution process (PPIRP), specifically designed for Micro, Small, and Medium Enterprises (MSMEs).