RAS question
The Insolvency and Bankruptcy Code (IBC) was enacted in:
Correct answer: (A) 2016.
The Insolvency and Bankruptcy Code was enacted in 2016.
Explanation
The Insolvency and Bankruptcy Code, 2016 is the relevant statute because the official India Code text itself names it as the Insolvency and Bankruptcy Code, 2016. Its purpose clause explains that it consolidates and amends laws on reorganisation and insolvency resolution for corporate persons, partnership firms and individuals in a time-bound manner. For corporate persons, the Code assigns insolvency resolution and liquidation matters to the National Company Law Tribunal with territorial jurisdiction over the registered office. The time-bound character is central: the corporate insolvency resolution process has a mandatory outer limit of 330 days, including extensions and time spent in related legal proceedings.
Why the other options are wrong
- (B) 2015 is wrong because the official short title is the Insolvency and Bankruptcy Code, 2016, not a 2015 enactment.
- (C) 2017 is wrong because later references to amendments do not change the Code's enactment year, which the official text states as 2016.
- (D) 2014 is wrong because the statute cited in the official text is Act No. 31 of 2016, so it was not enacted in 2014.
Concept
This tests the Indian Economy syllabus area on financial-sector reforms and insolvency resolution. RAS repeats such questions because IBC is a core institutional reform linking credit markets, corporate distress and tribunal-led resolution.