Consider the following statements regarding Bankruptcy and Insolvency Code 2016 1 This Code seeks to...........

Economic Affairs Industrial Sickness

Consider the following statements regarding Bankruptcy and Insolvency Code, 2016:

1. This Code seeks to create a unified framework for resolving insolvency and bankruptcy in India.

2. The Code will apply to companies, partnerships, limited liability partnerships, individuals and any other body specified by the central government.

3. The resolution process will have to be completed within a maximum period of 180 days from the date of registration of the case.

Which of the statements given above is/are correct:

2 and 3 only

1 and 3 only

3 only

1 ,2 and 3

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Explanation:

This Code seeks to create a unified framework for resolving insolvency and bankruptcy in India. Insolvency is a situation where individuals or organisations are unable to meet their financial obligations.
This Code seeks to repeal the Presidency Towns Insolvency Act, 1909 and Provincial Insolvency Act, 1920. In addition, it seeks to amend 11 laws, including the Companies Act, 2013, Recovery of Debts Due to Banks and Financial Institutions Act, 1993 and Sick Industrial Companies (Special Provisions) Repeal Act, 2003, among others.
The Code will apply to companies, partnerships, limited liability partnerships, individuals and any other body specified by the central government.
The resolution process will have to be completed within a maximum period of 180 days from the date of registration of the case. This period may be extended by 90 days if 75% of the financial creditors agree. The process will involve negotiations between the debtor and creditors to draft a resolution plan.