Question

Board for Industrial and financial Reconstruction (B.I.F.R) to suggest measures for revival of sick industry was started in
1. 1986
2. 1987
3. 1988
4. 1989

Answer 1

Correct Answer - Option 2 : 1987

The correct answer is 1987.

• The Board for Industrial and Financial Reconstruction (BIFR) was an agency of the Government of India, part of the Department of Financial Services of the Ministry of Finance.
• The BIFR was established under The Sick Industrial Companies (Special Provisions) Act, 1985 (SICA).
  • The board was set up in January 1987 and became functional as of 15 May 1987.
• Its objective was to determine the sickness of industrial companies and to assist in reviving those that may be viable and shutting down the others.
• On 1 December 2016, the Central government dissolved BIFR and referred all proceedings to the National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) as per provisions of Insolvency and Bankruptcy Code.

• The Insolvency and Bankruptcy Board of India:
  • It was established on 1st October 2016 under the Insolvency and Bankruptcy Code, 2016.
  • It is a key pillar of the ecosystem responsible for the implementation of the Code that consolidates and amends the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms, and individuals in a time-bound manner for maximization of the value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders. 
  • It is a unique regulator: regulates a profession as well as processes.
  • It has regulatory oversight over the Insolvency Professionals, Insolvency Professional Agencies, Insolvency Professional Entities, and Information Utilities.
  • It writes and enforces rules for processes, namely, corporate insolvency resolution, corporate liquidation, individual insolvency resolution and individual bankruptcy under the Code.
  • It has recently been tasked to promote the development of, and regulate, the working and practices of, insolvency professionals, insolvency professional agencies and information utilities and other institutions, in furtherance of the purposes of the Code.
  • It has also been designated as the ‘Authority’ under the Companies (Registered Valuers and Valuation Rules), 2017 for regulation and development of the profession of valuers in the country.
• NCLT is a quasi-judicial body in India that adjudicates issues relating to Indian companies.
• NCLAT is also the Appellate Tribunal for hearing appeals against the orders passed by the Insolvency and Bankruptcy Board of India under Section 202 and Section 211 of IBC.