Section 5 of IBC : Section 5: Definitions

Explanation using Example

Example Application of Section 5 of The Insolvency and Bankruptcy Code, 2016:

Imagine a scenario where a manufacturing company, XYZ Pvt. Ltd., is facing financial difficulties and is unable to repay its debts. The company's management decides to initiate an insolvency resolution process. Here's how Section 5 of the Insolvency and Bankruptcy Code, 2016 would apply:

• The Adjudicating Authority, in this case, would be the National Company Law Tribunal (NCLT), which has the jurisdiction to oversee the insolvency proceedings of corporate entities.
• The compa...

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