U-4 Insolvency and Bankruptcy Code 2016
U-4 Insolvency and Bankruptcy Code 2016
U-4 Insolvency and Bankruptcy Code 2016
Introduction –
The Insolvency and Bankruptcy Code, 2016 (IBC) is an Indian law which creates a consolidated framework
that governs insolvency and bankruptcy proceedings for companies, partnership firms, and individuals.
Prior to the IBC, the legislative framework for insolvency and restructuring was fragmented across multiple
legislations, such as the Companies Act 2013, the Sick Industrial Companies (Special Provisions) Act,
1985, Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002,
the Recovery of Debts due to Banks and Financial Institutions Act (RDDBFI Act), 1993, and others.
In a growing economy like India, a healthy credit flow and generation of new capital are essential, and when
a company or business turns insolvent or “sick”, it begins to default on its loans. In order for credit to not get
stuck in the system or turn into bad loans, it is important that banks or creditors are able to recover as much
as possible from the defaulter and as quickly as they can.
the business can either get a chance, if still viable, to start afresh with new owners, or its assets can be
liquidated or sold off in a timely manner. This way fresh credit can be pumped into the system and the value
degeneration of assets can be minimised.
In 2016, at a time when India’s Non-Performing Assets and debt defaults were piling up, and older loan
recovery mechanisms such as the Securitisation and Reconstruction of Financial Assets and Enforcement of
Security Interest Act (SARFAESI), Lok Adalats, and Debt Recovery Tribunals were seen to be performing
badly, the Insolvency and Bankruptcy Code (IBC) code was introduced to overhaul the corporate distress
resolution regime in India and consolidate previously available laws to create a time-bound mechanism with
a creditor-in-control model as opposed to the debtor-in-possession system.
When insolvency is triggered under the IBC, there can be two outcomes: resolution or liquidation; all
attempts are made to resolve the insolvency by either coming up with a restructuring or new ownership plan
and if resolution attempts fail, the company’s assets are liquidated.
After the introduction of the Insolvency and Bankruptcy Code, 2015 in the Lok Sabha on 21st December 2015,
it was referred to the Joint Committee. On such a referral the Committee had presented its recommendations
and a modified Bill based on its suggestions. In May 2016 both the Houses of Parliament passed the
Insolvency and Bankruptcy Code, 2016. The major objective of this economic reforms is to focus on creditor
drove insolvency resolution.
Shifting existing regime ‘Debtor in possession’ to a ‘ Creditor in control’
In India, the Insolvency and Bankruptcy Code, 2016 is one matured step towards settling the legal position
with respect to financial failures and insolvency. To provide easy exit with a painless mechanism in cases of
insolvency of individuals as well as companies, the code has significant value for all stakeholders including
various Government Regulators. Introduction of this Code has done away with overlapping provisions
contained in various laws –
Sick Industrial Companies (Special Provisions) Act, 1985
The Recovery of Debts Due to Banks and Financial Institutions Act, 1993
The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act,
2002
The Companies Act, 2013.
Before the enactment of this Code, there were multiple agencies dealing with the matters relating to debt,
defaults, and insolvency which generally leads to delays, complexities and higher costs in the process of
Insolvency resolution. The ‘Board for Industrial and Financial Reconstruction (BIFR)’, one of the Insolvency
Regulators, has been a phantasm for sick industrial companies. It is expected that the Insolvency and
Bankruptcy Code, 2016 will expedite the cases pending for a long time and resolve them within 180 days with
a further period of 90 days.
Applicability of the Code
The provisions of the Code shall apply for insolvency, liquidation, voluntary liquidation or bankruptcy of the
following entities:-
Any company incorporated under the Companies Act, 2013 or under any previous law.
Any other company governed by any special act for the time being in force, except in so far as the said
provision is inconsistent with the provisions of such Special Act.
Any Limited Liability Partnership under the LLP Act 2008.
Any other body being incorporated under any other law for the time being in force, as specified by the
Central Government in this regard
Partnership firms and individuals
Moreover, this code shall apply only if minimum amount of the default is Rs. 1 lakh. However, by placing the
notification in Official Gazette, Central Government may specify the minimum amount of default of higher
value which shall not be more than Rs. 1 crore.
Exceptions: There is an exception to the applicability of the Code that it shall not apply to corporate persons
who are regulated financial service providers like-
Banks , Financial Institutions, Insurance companies.
Rationale and objectives:
Objectives of the Code
A sound legal framework of bankruptcy law is required for achieving the following objectives:-
Improved handling of conflicts between creditors and the debtor
It can provide procedural certainty about the process of negotiation, in such a way as to reduce problems of
common property and reduce information asymmetry for all economic participants.
Set a limit between malfeasance and business failure
It can also provide flexibility for parties to arrive at the most efficient solution to maximize value during
negotiations. The bankruptcy law will create a platform for negotiation between creditors and external
financiers which can create the possibility of such rearrangements.
Macroeconomic downturns losses to be allocated
An infirm insolvency regime leads to the stereotype of “rich promoters of defaulting entities” generating
theories such as:
misconduct is the reason for all the defaults made
ultimately it is the promoters who should personally and financially be held responsible for defaults of
the firms which are under their control.
Macroeconomic downturns losses to be allocated
Clear allocation of these losses is a result of a well-defined bankruptcy framework. Taxes, inflation, currency
depreciation, expropriation, or wage or consumption suppression are the common practices of loss allocation.
These could affect foreign creditors, small business owners, savers, workers, owners of financial and non-
financial assets, importers, exporters.
Key Objectives of the Code
The sole intention of the Insolvency and Bankruptcy Code, 2016 is to provide a justified balance between-
an interest of all the stakeholders of the company, so that they enjoy the availability of credit
the loss that a creditor might have to bear on account of default
The objective behind Insolvency and Bankruptcy Code, 2016 are listed below-
To consolidate and amend the laws relating to re-organization and insolvency resolution of corporate
persons, partnership firms, and individuals.
To fix time periods for execution of the law in a time-bound settlement of insolvency (i.e. 180 days).
To maximize the value of assets of interested persons.
To promote entrepreneurship
To increase the availability of credit.
To balance all stakeholder’s interest (including alteration). Balance to be done in the order of priority
of payment of Government dues.
To establish an Insolvency and Bankruptcy Board of India as a regulatory body for insolvency and
bankruptcy law.
To establish higher levels of debt financing across a wide variety of debt instruments.
To provide painless revival mechanism for entities.
To deal with cross-border insolvency.
To resolve India’s bad debt problem by creating a database of defaulters.
The economic and social impacts of insolvency and bankruptcy can vary depending on the specific
circumstances of the case and the country in which it occurs. In general, however, insolvency and
bankruptcy can have significant impacts on both creditors and debtors, as well as on the broader
economy.
For creditors, the insolvency or bankruptcy of a debtor can result in the loss of the money that they
are owed. This can be particularly damaging for small creditors, such as individual investors or small
businesses, who may have a harder time recouping their losses.
For debtors, the process of insolvency or bankruptcy can be financially and emotionally stressful. It
can result in the loss of assets, such as homes or vehicles, and can damage their credit score, making
it harder for them to borrow money in the future.
In terms of the broader economy, insolvency and bankruptcy can impact economic growth and stability.
When businesses go bankrupt, it can lead to job losses and a reduction in economic activity. This can have
ripple effects, impacting other businesses and potentially leading to a downturn in the economy. It’s
important to note that these are general observations and the specific impacts of insolvency and bankruptcy
can vary depending on the individual circumstances of each case.
Insolvency and bankruptcy can have significant economic impacts in India. When a company
becomes insolvent or bankrupt, it may be unable to meet its financial obligations, including debts,
salaries, and other expenses. This can lead to a ripple effect throughout the economy, as the
company’s creditors, employees, and suppliers may be negatively affected.
One of the main economic impacts of insolvency and bankruptcy is the potential loss of jobs. When
a company is unable to pay its employees, they may be laid off or forced to find new employment.
This can lead to a decline in the overall employment rate and an increase in the number of people
looking for work.
Insolvency and bankruptcy can also affect the creditworthiness of a country, as investors may be
hesitant to lend to companies or individuals in a market with a high rate of insolvency and
bankruptcy. This can lead to a decline in investment and economic growth.
IBC has shifted the power balance from the debtor/borrower to the creditor as a significant economic
reform. It has established a far stronger sense of fiscal and credit discipline in order to better
safeguard economic value. The Code’s results have improved India’s international position in terms
of ease of resolving insolvency.
Finally, insolvency and bankruptcy can also lead to a decline in the value of a company’s assets, as
they may need to be sold off to pay off debts. This can have a negative impact on the overall value
of the company and the wealth of its shareholders. Overall, insolvency and bankruptcy can have
significant economic impacts in India, including job losses, a decline in creditworthiness, and a
decline in the value of assets.
The Economic Survey 2020-21 citing RBI data states that as a percentage of claims, scheduled
commercial banks (SCBs) have been able to recover 45.5 per cent of the amount involved through
IBC for the financial year 2019-20, which is the highest as compared to recovery under other modes
and legislations. The World Bank Group [1] in its ‘Doing Business 2020’ report has observed that the
administrative reform efforts in India have targeted all of the areas measured by ‘Doing Business’,
with a focus on paying taxes, trading across borders, and resolving insolvency[
The term ‘society’ means relationships with social beings, expressed by creating and re-creating an
organization which guides and controls their behaviour in myriad ways. Society liberates and limits
the activities of men and it is a necessary condition of every human being and needs to fulfilment
of life
Insolvency and bankruptcy can have significant social impacts in India. When a company becomes
insolvent or bankrupt, it may be unable to meet its financial obligations, including salaries and other
expenses. This can lead to a ripple effect throughout the community, as the company’s employees
and their families may be negatively affected.
One of the main social impacts of insolvency and bankruptcy is the potential loss of jobs. When a
company is unable to pay its employees, they may be laid off or forced to find new employment.
This can lead to financial hardship for the affected employees and their families, as they may struggle
to make ends meet without a steady income.
Insolvency and bankruptcy can also lead to a decline in the value of a company’s assets, which can
have a negative impact on the wealth of the company’s shareholders. This can lead to social unrest
and discontent, as people may feel that their financial security has been jeopardized.
Finally, insolvency and bankruptcy can also have a negative impact on the overall community, as the
company’s creditors, suppliers, and other stakeholders may also be affected. This can lead to a
decline in the local economy and a reduction in the availability of goods and services.
Overall, insolvency and bankruptcy can have significant social impacts in India, including job losses,
financial hardship, and a decline in the local economy.
When a company becomes insolvent or bankrupt, it may be unable to meet its financial obligations
to its creditors. This can lead to a loss of income for the creditors and potentially financial hardship,
depending on the extent of their reliance on the company’s payments.
Insolvency and bankruptcy can also have a significant impact on the debtors of a company, including
employees and shareholders. When a company is unable to pay its debts, it may be forced to sell
off assets or declare bankruptcy, which can lead to job losses and a decline in the value of the
company’s assets. This can have a negative impact on the financial security and well-being of the
debtors.
Insolvency and bankruptcy can also have a ripple effect on the broader economy, as the company’s
creditors, employees, and suppliers may be negatively affected. This can lead to a decline in
economic activity and a reduction in the availability of goods and services. Additionally, insolvency
and bankruptcy can affect the creditworthiness of a country, as investors may be hesitant to lend to
companies or individuals in a market with a high rate of insolvency and bankruptcy. This can lead to
a decline in investment and economic growth.
The Tribunal has 14 days to admit or reject the application or has to provide a reason if the admission is
delayed. The CIRP or resolution process begins once an application is admitted by the AA. The amended
mandatory deadline for the completion of the resolution process is 330 days.
Once the application is admitted, the AA appoints an interim resolution professional (IRP), registered with
an insolvency professional agency (IPA). IRPs could be experienced and registered chartered accountants,
company secretaries, lawyers and so on. Once appointed by the Tribunal, the IRP takes control of the
defaulter’s assets and operations, collects information about the state of the company from Information
Utilities (repositories keeping track of the debtor’s credit history), and finally coordinates the constitution of
a Committee of Creditors or a CoC.
A CoC, comprising all (unrelated) financial creditors of a defaulting company, is the most important business
decision-making body in every CIRP, as it decides whether the defaulting company is viable enough to be
restructured and given a fresh start, or liquidated. It also appoints an insolvency professional (IP), who can
either be the same as the IRP or a new professional, who looks after the operations of the company during
the CIRP.
The IP invites and examines proposals for a resolution plan for a company, which could include restructuring
of debt, merger or demerger of the company. It submits eligible plans to the CoC, which can approve a plan
if it receives 66% of the voting share of committee members. If the CoC fails to approve any resolution plan,
the company goes for liquidation.
If a plan is approved, the CoC submits it to the Tribunal (before the maximum 330-day deadline), which then
approves the plan which the debtor is bound to implement. The AA can also reject a plan.
In July this year, the IBC was amended to introduce pre-packs or pre-pack insolvency resolution process
(PIRP) for Micro, Small, and Medium Enterprises (MSMEs).. Under a pre-pack resolution, creditors and
owners of a business agree out-of-court to sell the business to an interested buyer. The buyer may be a third
party or someone related to the business. The current law limits the pre-pack resolution mechanism to defaults
not exceeding Rs. 1 crore
The Code has established the adjudicating authority for the Corporate Insolvency
Resolution Process (CIRP) for the body corporate, individuals, and LLPs. Most
importantly, all the appeals don’t lie with the same authority. There are two adjudicating
authorities established under the code. They are as follows:
Before the establishment of these adjudicating bodies, all the appeals were filed under
the Civil Court. However, after the commencement of the Code, it aimed to create one
chain of authority for adjudication therefore Civil courts were prohibited to intervene in
the matters of insolvency and Bankruptcy.
Role of the Insolvency and Bankruptcy Board of India (IBBI)
The Insolvency and Bankruptcy Code, 2016 which was enacted by the Indian Parliament to
consolidate and amend the existing laws relating to insolvency and bankruptcy in the country,
established the Insolvency and Bankruptcy Board of India (IBBI) in the year 2016. It is a very essential
and important board of the government.
The Insolvency and Bankruptcy Board of India (IBBI) is a very crucial authority. It oversees both
professions and transactions. IBBI is responsible for implementing the IBC and amending legislation
for insolvency resolution of corporate people, partnership companies, and individuals in a timely
way in order to maximize the worth of such a person’s assets.
Its main functions include registering insolvency professionals and insolvency professional agencies,
regulating the insolvency process, and promoting the development of an efficient insolvency system
in India.
The IBBI also encourages credit availability, entrepreneurship, and the balance of all shareholders’
interests. The main agenda of the Insolvency and Bankruptcy Board of India (IBBI) was to improve
the bankruptcy regime of the country. The IBBI is the main pillar in the implementation of the IBC.
The powers of The Insolvency and Bankruptcy Board of India (IBBI) are provided under section 196
of the Insolvency and Bankruptcy Code.
1. IBBI facilitates the development and regulation of practices and working methods of the
insolvency professions, insolvency agencies, information utilities, and other institutions.
2. IBBI also levies charges or fees for registration and renewal of the insolvency professions,
insolvency agencies, and information utilities.
3. The minimum eligibility requirements for the registering insolvency professions, insolvency
agencies, and information utilities are registered, suspended, renewed, withdrawn, cancelled or
specified by IBBI.
4. IBBI also specifies the standards and the regulation which are required for the function of the
insolvency professions, insolvency agencies, and information utilities.
5. The Minimum curricula for the examination of bankruptcy professionals for enrollment in
insolvency professional organizations are also laid down in the IBBI.
6. The guidelines and the regulations on matters which are related to bankruptcy and insolvency
required under the IBC are also made by IBBI.
7. IBBI also issues guidelines for the timely disposition of corporate debtor/debtor assets.
8. The mechanism for the redressal of grievances against the insolvency professions, insolvency
agencies, and information utilities is specified by IBBI. The orders passed relating to the complaints
filed against them, and are complied with the provisions of IBC and the regulations.
9. The IBBI has the power to impose penalties, fines, and sanctions on individuals and entities that
violate the provisions of the IBC or the rules and regulations issued by the IBBI
10. It also has the power to initiate legal proceedings against such individuals and entities in
appropriate cases.
11. The grounds on which the insolvency professional can be expelled from their membership of
insolvency professional agencies are also given by IBBI.
12. Conduct research and studies on matters related to insolvency and bankruptcy.
13. Promote public awareness of the insolvency and bankruptcy laws and processes in India.
14. Investigate any misconduct by insolvency professionals and take necessary disciplinary action.
15. The IBBI also designates members to the different committees and panels established under the
IBC, such as the establishment of a governing board for the administration and internal governance
of insolvency professional agencies.
16. The Insolvency and Bankruptcy Board of India (IBBI) also provides guidance and assistance to
insolvency professionals and other stakeholders involved in the insolvency and bankruptcy process.
17. IBBI monitors and reviews the work of the insolvency professional who are the members.
18. The Insolvency and Bankruptcy Board of India (IBBI) also specifies the particular classes for the
people who will receive services at concessional rates.
19. The Insolvency and Bankruptcy Board of India (IBBI) also may exercise the powers which are
vested in a civil court under the Civil procedure code, 1908, along with exercising the powers under
the IBC.
It can enforce and summon the attendance of the person/persons and their examination on
oath.
The Board can ask to produce and discover the book of accounts and other documents, at
such time as specified by the board.
The board can also inspect any books, documents, or registers of any persons at any place.
Appellate Authorities –
National Company Law Tribunal
"The Central Government has constituted National Company Law Tribunal (NCLT) under section 408
of the Companies Act, 2013 (18 of 2013) w.e.f. 01st June 2016. In the first phase the Ministry of
Corporate Affairs has set up eleven Benches, one Principal Bench at New Delhi and ten other Benches
at New Delhi, Ahmedabad, Allahabad, Bengaluru, Chandigarh, Chennai, Guwahati, Hyderabad, Kolkata
and Mumbai. These Benches are headed by the President Chief Justice (Retd.) Ramalingam Sudhakar
and comprises of sixteen Judicial Members and nine Technical Members at different locations.
Subsequently, more Benches at Cuttack, Jaipur, Kochi, Amravati, and Indore have been setup and new
members have joined"
National Company Law Appellate Tribunal (NCLAT) was constituted under Section 410 of the Companies Act,
2013 for hearing appeals against the orders of National Company Law Tribunal(s) (NCLT), with effect from 1st
June, 2016.
NCLAT is also the Appellate Tribunal for hearing appeals against the orders passed by NCLT(s) under Section
61 of the Insolvency and Bankruptcy Code, 2016 (IBC), with effect from 1st December, 2016. NCLAT is also
the Appellate Tribunal for hearing appeals against the orders passed by Insolvency and Bankruptcy Board of
India under Section 202 and Section 211 of IBC.
NCLAT is also the Appellate Tribunal to hear and dispose of appeals against any direction issued or decision
made or order passed by the Competition Commission of India (CCI) – as per the amendment brought to Section
410 of the Companies Act, 2013 by Section 172 of the Finance Act, 2017, with effect from 26th May, 2017.
NCLAT is also the Appellate Tribunal to hear and dispose of appeals against the orders of the National Financial
Reporting Authority – as per the amendment brought to Section 410 (a) of the Companies Act, 2013 by Section
83 of the Companies (Amendment) Act, 2017, with effect from 7th May, 2018.
The Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) provides speedy redressal to lenders and
borrowers through filing of Original Applications (OAs) in Debts Recovery Tribunals (DRTs) and appeals
in Debts Recovery Appellate Tribunals (DRATs).
• The Securitisation and Reconstruction of Financial Assets & Enforcement of Security Interest Act, 2002
(SARFAESI Act) provides access to banks and financial institutions covered under the Act for recovery
of secured debts from the borrowers without the intervention of the Courts at the first stage. Securitisation
Appeals (SAs) can be filed with the DRTs by those aggrieved against action taken by secured creditors
under the SARFAESI Act.
Insolvency of Individuals and Partnership firms:
Background
Part III of Insolvency and Bankruptcy Code, 2016 (Insolvency Code, 2016 ) [sections 79 to
187] deal with provisions relating to Bankruptcy for Individuals and partnership firms.
These provisions will replace Present Presidency Towns Insolvency Act, 1909 and Provincial
Insolvency Act, 1920.
The provisions in the Insolvency Code in respect of insolvency resolution and Bankruptcy for
Individuals and partnership firms have been notified and made effective from 1 -12-2019 only
for personal guarantors of corporate debtors (not for other individuals and partnership
firms).
These provisions have not been made applicable to other individuals and partnership
firms (position as in May, 2021).
The intention was make the provisions relating to Insolvency Resolution and Bankruptcy for
individuals and partnership firms (part III of Code) applicable to personal guarantors even if
the part III was not made applicable immediately to other individuals and partnership firms.
The provisions could apply when recovery from personal guarantor was possible. However,
there was no provision where the personal guarantor himself required insolvency resolution
or bankruptcy process. Now, these provisions have been made w.e.f.
1-12-2019.
Part III of Insolvency Code, 2016 deals with insol vency resolution and liquidation for
individuals and firms. For individuals and firms, there are two distinct processes – fresh start
and insolvency resolution. These are followed by bankruptcy order.
Debt Recovery Tribunal (DRT) will be adjudicating autho rity and DRAT will be appellate
authority for individuals and firms.
This amount is so meagre that there will be very few individuals who will be eligible and in
fact, for them, even this process is beyond their means.
In case of other individuals and firms, the process is similar to that applicable to corporate
persons.
The process will be handled by ‘resolution professional’ under supervision of ‘Adjudicating
Authority’.
Insolvency Resolution Process will be initiated. E fforts will be made to finalise ‘repayment
plan’ with concurrence of debtor and committee of creditors.
If the efforts succeed and repayment plan is successfully implemented, the individual or firm
will get a discharge order.
If efforts fail, the person will be declared ‘bankrupt’. The resolution professional will take
over estate of the bankrupt. He will sell or dispose it off and satisfy repayments of creditors to
the extent possible.
The discharge order will be registered with Board (IBBI) in a register maintained under
section 196 of Insolvency Code, 2016.
Adjudicating Authority
In relation to insolvency matters of individuals and firms, the Adjudicating Authority shall be
the Debt Recovery Tribunal (DRT) having territorial jurisdiction over the place where the
individual debtor actually and voluntarily resides or carries on business
or personally works for gain – section 179(2) of Insolvency Code, 2016.
“Adjudicating Authority” means the Debt Recovery Tribunal constituted under sub-section (1)
of section 3 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 –
section 79(1) of Insolvency Code, 2016.
However, in case of personal guarantors to corporate debtors, NCLT will be ‘adjud icating
authority’ as per section 60 of Insolvency Code.
The Debt Recovery Tribunal shall have overriding jurisdiction to entertain or dispose of – (a)
any suit or proceeding by or against the individual debtor ( b) any claim made by or against
the individual debtor (c) any question of priorities or any other question whether of law or
facts, arising out of or in relation to insolvency and bankruptcy of the individual debtor or
firm under this Code – section 179(2) of Insolvency Code, 2016.
Firm – “Firm” means a body of individuals carrying on business in partnership whether or not
registered under section 59 of the Indian Partnership Act, 1932 (9 of 1932) – section 79(16)
of Insolvency Code, 2016.
Claim – “Claim” means— (a) a right to payment, whether or not such right is reduced to
judgment, fixed, disputed, undisputed, legal, equitable, secured or unsecured ( b) right to
remedy for breach of contract under any law for the time being in force, if such breach gives
rise to a right to payment, whether or not such right is reduced to judgment, fixed, matured,
un-matured, disputed, undisputed, secured or unsecured – section 3(6) of Insolvency Code,
2016 [definition notified and effective from 1-11-2016].
Period of moratorium to be excluded for purpose of limitation
While computing the period of limitation specified for any suit or application in the name and
on behalf of a debtor, the period during which there was moratorium shall be excluded –
section 179(3) of Insolvency Code, 2016.
Civil court or any authority shall not have jurisdiction to entertain any suit or proceedings in
respect of any matter on which DRT or DRAT have jurisdiction under Insolvency Code, 2016 –
section180(1) of Insolvency Code, 2016.
No injunction shall be granted by any court, Tribunal or authority in respect of any action
taken, or to be taken, in pursuance of any power conferred on DRT or DRAT under the
Insolvency Code, 2016 – section180(2) of Insolvency Code, 2016.
Appeal against order of DRT shall be filed with DRAT (Debt Recovery Appellate Tribunal)
within 30 days. This period can be extended by further 15 days by DRAT if sufficient cause is
shown – section 181 of Insolvency Code, 2016.
An appeal from an order of DRAT can be filed before Supreme Court within 45 days only on
question of law. This period can be extended by further 15 days by Supreme Court if sufficient
cause is shown – section 182 of Insolvency Code, 2016.