The Insolvency and Bankruptcy Code: control passes to the creditors, with a time limit to resolve

Background

The Insolvency and Bankruptcy Code was passed by Parliament and published in the Official Gazette in 2016, consolidating insolvency laws for companies, limited liability entities, partnership firms and individuals into a single law.
When a corporate entity defaults on its debt, control shifts from the shareholders and promoters to a committee of creditors.
The creditors have 180 days, extendable in deserving cases, to evaluate proposals to resolve the default; the outer limit is 330 days in specified circumstances.
Operational creditors such as workmen and suppliers can also start the process on non-payment of dues.
If insolvency cannot be resolved, the assets of the borrower may be sold to repay creditors.
The National Company Law Tribunal adjudicates for companies, and the Insolvency and Bankruptcy Board of India regulates insolvency professionals, their agencies and information utilities.