Comparative Analysis on the Laws of

Insolvency prior and after the enactment of the

IBC 2016
Basis of Restructuring
S.No SICA RDDBFI SARFAESI IBC
differentiation Mechanisms

1.Company
existed for at
least 5years Minimum
Amount of
Trigger Default is Aggregate default
01. Default as
Amount 2.Accumulated Rs.ten lakh or exposure not amount of
owed to a
losses >= net more than ten exceeding ten Rs.1,00,000
secured
worth for any lakh crore rupees to file an
creditor
financial year application.

Establishment
of specialised
Tribunals
Enforcement
called the
of security
Debt
interest over
recovery
Rehabilitation the property Change in the
Tribunals and Maximisation
and revival of of the existing terms
02. Objective other of the value
sick industrial borrower and and conditions
Appellate of the assets
units establishment of the debt.
Tribunals to
of asset
recover
reconstruction
money due to
companies
banks and
financial
institutions
 Assistance in
recovery of
dues by Chief
Metropolitan
Magistrate
and Chief
Debt District National
RBI
Recovery Magistrate. Company
Regulations
Tribunals( Any party Law Tribunal
and inter-se
Adjudicating BIFR and DRT) and aggrieved by and National
03. voluntary
Authorities AAIFR Debt the action of Company
agreement
Recovery Bank or Law
between
Appellate financial Appellate
creditors
Tribunals Institution Tribunal
may file
appeal to
Debt
Recovery
Appellate
Tribunal.
Model time
line
prescribed
for corporate
Insolvency
Resolution
1-2 years for
process post
further
More than Ongoing which
04. Time-line investigation 1-2 years
two years process company
of sick
goes into
companies
liquidation.
The period
ranges
between 180
to maximum
270 days
Operational
as well as
financial
Types of creditors
Secured and Secured and
05. creditors Secured secured which
unsecured unsecured
covered include the
secured and
the unsecured
creditors
 The
Insolvency
and the
Bankruptcy
Board of
The Public India( IBBI),
The specialised Auction and The
Pillars of the RBI
06. adjudicating Tribunals enforcement Information
legal regime regulations
authorities established of the security Utilities, The
under the Act interest National
Company
law Tribunal
and the
Insolvency
Professionals