The INSOLVENCY AND BANKRUPTCY CODE, 2016 Last Update 01-6-2020

PRELIMINARY

Section 1 — Short title, extent and commencement.

(1) This Code may be called the Insolvency and Bankruptcy Code, 2016.

(2) It extends to the whole of India: [Omitted]

(3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint:

Provided that different dates may be appointed for different provisions of this Code and any reference in any such provision to the commencement of this Code shall be construed as a reference to the commencement of that provision.

Browse all 273 sections
  1. 1.Short title, extent and commencement.
  2. 2.Application.
  3. 3.Definitions.
  4. 4.Application of this Part.
  5. 5.Definitions.
  6. 6.Persons who may initiate corporate insolvency resolution process.
  7. 7.Initiation of corporate insolvency resolution process by financial creditor.
  8. 8.Insolvency resolution by operational creditor.
  9. 9.Application for initiation of corporate insolvency resolution process by operational creditor.
  10. 10.Initiation of corporate insolvency resolution process by corporate applicant.
  11. 11.Persons not entitled to make application.
  12. 12.Time-limit for completion of insolvency resolution process.
  13. 12A.Withdrawal of application admitted under section 7, 9 or 10.
  14. 13.Declaration of moratorium and public announcement.
  15. 14.Moratorium.
  16. 15.Public announcement of corporate insolvency resolution process.
  17. 16.Appointment and tenure of interim resolution professional.
  18. 17.Management of affairs of corporate debtor by interim resolution professional.
  19. 18.Duties of interim resolution professional.
  20. 19.Personnel to extend co-operation to interim resolution professional.
  21. 20.Management of operations of corporate debtor as going concern.
  22. 21.Committee of creditors.
  23. 22.Appointment of resolution professional.
  24. 23.Resolution professional to conduct corporate insolvency resolution process.
  25. 24.Meeting of committee of creditors.
  26. 25.Duties of resolution professional.
  27. 25A.Rights and duties of authorised representative of financial creditors.
  28. 26.Application for avoidance of transactions not to affect proceedings.
  29. 27.Replacement of resolution professional by committee of creditors.
  30. 28.Approval of committee of creditors for certain actions.
  31. 29.Preparation of information memorandum.
  32. 29A.Person not eligible to be resolution applicant.
  33. 30.Submission of resolution plan.
  34. 31.Approval of resolution plan.
  35. 32.Appeal.
  36. 32A.Liability for prior offences, etc.
  37. 33.Initiation of liquidation.
  38. 34.Appointment of liquidator and fee to be paid.
  39. 35.Powers and duties of liquidator.
  40. 36.Liquidation estate.
  41. 37.Powers of liquidator to access information.
  42. 38.Consolidation of claims.
  43. 39.Verification of claims.
  44. 40.Admission or rejection of claims.
  45. 41.Determination of valuation of claims.
  46. 42.Appeal against the decision of liquidator.
  47. 43.Preferential transactions and relevant time.
  48. 44.Orders in case of preferential transactions.
  49. 45.Avoidance of undervalued transactions.
  50. 46.Relevant period for avoidable transactions.
  51. 47.Application by creditor in cases of undervalued transactions.
  52. 48.Order in cases of undervalued transactions.
  53. 49.Transactions defrauding creditors.
  54. 50.Extortionate credit transactions.
  55. 51.Orders of Adjudicating Authority in respect of extortionate credit transactions.
  56. 52.Secured creditor in liquidation proceedings.
  57. 53.Distribution of assets.
  58. 54.Dissolution of corporate debtor.
  59. 55.Fast track corporate insolvency resolution process.
  60. 56.Time period for completion of fast track corporate insolvency resolution process.
  61. 57.Manner of initiating fast track corporate insolvency resolution process.
  62. 58.Applicability of Chapter II to this Chapter.
  63. 59.Voluntary liquidation of corporate persons.
  64. 60.Adjudicating Authority for corporate persons.
  65. 61.Appeals and Appellate Authority.
  66. 62.Appeal to Supreme Court.
  67. 63.Civil court not to have jurisdiction.
  68. 64.Expeditious disposal of applications.
  69. 65.Fraudulent or malicious initiation of proceedings.
  70. 66.Fraudulent trading or wrongful trading.
  71. 67.Proceedings under section 66.
  72. 68.Punishment for concealment of property.
  73. 69.Punishment for transactions defrauding creditors.
  74. 70.Punishment for misconduct in course of corporate insolvency resolution process.
  75. 71.Punishment for falsification of books of corporate debtor.
  76. 72.Punishment for wilful and material omissions from statements relating to affairs of corporate debtor.
  77. 73.Punishment for false representations to creditors.
  78. 74.Punishment for contravention of moratorium or the resolution plan.
  79. 75.Punishment for false information furnished in application.
  80. 76.Punishment for non-disclosure of dispute or repayment of debt by operational creditor.
  81. 77.Punishment for providing false information in application made by corporate debtor.
  82. 78.Application.
  83. 79.Definitions.
  84. 80.Eligibility for making an application.
  85. 81.Application for fresh start order.
  86. 82.Appointment of resolution professional.
  87. 83.Examination of application by resolution professional.
  88. 84.Admission or rejection of application by Adjudicating Authority.
  89. 85.Effect of admission of application.
  90. 86.Objections by creditor and their examination by resolution professional.
  91. 87.Application against decision of resolution professional.
  92. 88.General duties of debtor.
  93. 89.Replacement of resolution professional.
  94. 90.Directions for compliances of restrictions, etc.
  95. 91.Revocation of order admitting application.
  96. 92.Discharge order.
  97. 93.Standard of conduct.
  98. 94.Application by debtor to initiate insolvency resolution process.
  99. 95.Application by creditor to initiate insolvency resolution process.
  100. 96.Interim moratorium.
  101. 97.Appointment of resolution professional.
  102. 98.Replacement of resolution professional.
  103. 99.Submission of report by resolution professional.
  104. 100.Admission or rejection of application.
  105. 101.Moratorium.
  106. 102.Public notice and claims from creditors.
  107. 103.Registering of claims by creditors.
  108. 104.Preparation of list of creditors.
  109. 105.Repayment plan.
  110. 106.Report of resolution professional on repayment plan.
  111. 107.Summoning of meeting of creditors.
  112. 108.Conduct of meeting of creditors.
  113. 109.Voting rights in meeting of creditors.
  114. 110.Rights of secured creditors in relation to repayment plan.
  115. 111.Approval of repayment plan by creditors.
  116. 112.Report of meeting of creditors on repayment plan.
  117. 113.Notice of decisions taken at meeting of creditors.
  118. 114.Order of Adjudicating Authority on repayment plan.
  119. 115.Effect of order of Adjudicating Authority on repayment plan.
  120. 116.Implementation and supervision of repayment plan.
  121. 117.Completion of repayment plan.
  122. 118.Repayment plan coming to end prematurely.
  123. 119.Discharge order.
  124. 120.Standard of conduct.
  125. 121.Application for bankruptcy.
  126. 122.Application by debtor.
  127. 123.Application by creditor.
  128. 124.Effect of application.
  129. 125.Appointment of insolvency professional as bankruptcy trustee.
  130. 126.Bankruptcy order.
  131. 127.Validity of bankruptcy order.
  132. 128.Effect of bankruptcy order.
  133. 129.Statement of financial position.
  134. 130.Public notice inviting claims from creditors.
  135. 131.Registration of claims.
  136. 132.Preparation of list of creditors.
  137. 133.Summoning of meeting of creditors.
  138. 134.Conduct of meeting of creditors.
  139. 135.Voting rights of creditors.
  140. 136.Administration and distribution of estate of bankruptcy.
  141. 137.Completion of administration.
  142. 138.Discharge order.
  143. 139.Effect of discharge.
  144. 140.Disqualification of bankrupt.
  145. 141.Restrictions on bankrupt.
  146. 142.Modification or recall of bankruptcy order.
  147. 143.Standard of conduct.
  148. 144.Fees of bankruptcy trustee.
  149. 145.Replacement of bankruptcy trustee.
  150. 146.Resignation by bankruptcy trustee.
  151. 147.Vacancy in office of bankruptcy trustee.
  152. 148.Release of bankruptcy trustee.
  153. 149.Functions of bankruptcy trustee.
  154. 150.Duties of bankrupt towards bankruptcy trustee.
  155. 151.Rights of bankruptcy trustee.
  156. 152.General powers of bankruptcy trustee.
  157. 153.Approval of creditors for certain acts.
  158. 154.Vesting of estate of bankrupt in bankruptcy trustee.
  159. 155.Estate of bankrupt.
  160. 156.Delivery of property and documents to bankruptcy trustee.
  161. 157.Acquisition of control by bankruptcy trustee.
  162. 158.Restrictions on disposition of property.
  163. 159.After-acquired property of bankrupt.
  164. 160.Onerous property of bankrupt.
  165. 161.Notice to disclaim onerous property.
  166. 162.Disclaimer of leaseholds.
  167. 163.Challenge against disclaimed property.
  168. 164.Undervalued transactions.
  169. 165.Preference transactions.
  170. 166.Effect of order.
  171. 167.Extortionate credit transactions.
  172. 168.Obligations under contracts.
  173. 169.Continuance of proceedings on death of bankrupt.
  174. 170.Administration of estate of deceased bankrupt.
  175. 171.Proof of debt.
  176. 172.Proof of debt by secured creditors.
  177. 173.Mutual credit and set-off.
  178. 174.Distribution of interim dividend.
  179. 175.Distribution of property.
  180. 176.Final dividend.
  181. 177.Claims of creditors.
  182. 178.Priority of payment of debts.
  183. 179.Adjudicating authority for individuals and partnership firms.
  184. 180.Civil court not to have jurisdiction.
  185. 181.Appeal to Debt Recovery Appellate Tribunal.
  186. 182.Appeal to Supreme Court.
  187. 183.Expeditious disposal of applications.
  188. 184.Punishment for false information, etc., by creditor in insolvency resolution process.
  189. 185.Punishment for contravention of provisions.
  190. 186.Punishment for false information, concealment, etc., by bankrupt.
  191. 187.Punishment for certain actions.
  192. 188.Establishment and incorporation of Board.
  193. 189.Constitution of Board.
  194. 190.Removal of member from office.
  195. 191.Powers of Chairperson.
  196. 192.Meetings of Board.
  197. 193.Member not to participate in meetings in certain cases.
  198. 194.Vacancies, etc., not to invalidate proceedings of Board, Officers and employees of Board.
  199. 195.Power to designate financial sector regulator.
  200. 196.Powers and functions of Board.
  201. 197.Constitution of advisory committee, executive committee or other committee.
  202. 198.Condonation of delay.
  203. 199.No person to function as insolvency professional agency without valid certificate of registration.
  204. 200.Principles governing registration of insolvency professional agency.
  205. 201.Registration of insolvency professional agency.
  206. 202.Appeal to National Company Law Appellate Tribunal.
  207. 203.Governing Board of insolvency professional agency.
  208. 204.Functions of insolvency professional agencies.
  209. 205.Insolvency professional agencies to make bye-laws.
  210. 206.Enrolled and registered persons to act as insolvency professionals.
  211. 207.Registration of insolvency professionals.
  212. 208.Functions and obligations of insolvency professionals.
  213. 209.No person to function as information utility without certificate of registration.
  214. 210.Registration of information utility.
  215. 211.Appeal to National Company Law Appellate Tribunal.
  216. 212.Governing Board of information utility.
  217. 213.Core services, etc., of information utilities.
  218. 214.Obligations of information utility.
  219. 215.Procedure for submission, etc., of financial information.
  220. 216.Rights and obligations of persons submitting financial information.
  221. 217.Complaints against insolvency professional agency or its member or information utility.
  222. 218.Investigation of insolvency professional agency or its member or information utility.
  223. 219.Show cause notice to insolvency professional agency or its member or information utility.
  224. 220.Appointment of disciplinary committee.
  225. 221.Grants by Central Government.
  226. 222.Board’s Fund.
  227. 223.Accounts and audit.
  228. 224.Insolvency and Bankruptcy Fund.
  229. 225.Power of Central Government to issue directions.
  230. 226.Power of Central Government to supersede Board.
  231. 227.Power of Central Government to notify financial service providers, etc.
  232. 228.Budget.
  233. 229.Annual report.
  234. 230.Delegation.
  235. 231.Bar of jurisdiction.
  236. 232.Members, officers and employees of Board to the public servants.
  237. 233.Protection of action taken in good faith.
  238. 234.Agreements with foreign countries.
  239. 235.Letter of request to a country outside India in certain cases.
  240. 235A.Punishment where no specific penalty or punishment is provided.
  241. 236.Trial of offences by Special Court.
  242. 237.Appeal and revision.
  243. 238.Provisions of this Code to override other laws.
  244. 238A.Limitation.
  245. 239.Power to make rules.
  246. 240.Power to make regulations.
  247. 240A.Application of this Code to micro, small and medium enterprises.
  248. 241.Rules and regulations to be laid before Parliament.
  249. 242.Power to remove difficulties.
  250. 243.Repeal of certain enactments and savings.
  251. 244.Transitional provisions.
  252. 245.Amendments of Act 9 of 1932.
  253. 246.Amendments of Act 1 of 1944.
  254. 247.Amendments of Act 43 of 1961.
  255. 248.Amendments of Act 52 of 1962.
  256. 249.Amendments of Act 51 of 1993.
  257. 250.Amendments of Act 32 of 1994.
  258. 251.Amendments of Act 54 of 2002.
  259. 252.Amendments of Act 1 of 2004.
  260. 253.Amendments of Act 51 of 2007.
  261. 254.Amendments of Act 6 of 2009.
  262. 255.Amendments of Act 18 of 2013.
  263. SCH-THE FIRST SCHEDULE.THE FIRST SCHEDULE
  264. SCH-THE SECOND SCHEDULE.THE SECOND SCHEDULE
  265. SCH-THE THIRD SCHEDULE.THE THIRD SCHEDULE
  266. SCH-THE FOURTH SCHEDULE.THE FOURTH SCHEDULE
  267. SCH-THE FIFTH SCHEDULE.THE FIFTH SCHEDULE
  268. SCH-THE SIXTH SCHEDULE.THE SIXTH SCHEDULE
  269. SCH-THE SEVENTH SCHEDULE.THE SEVENTH SCHEDULE
  270. SCH-THE EIGHTH SCHEDULE.THE EIGHTH SCHEDULE
  271. SCH-THE NINTH SCHEDULE.THE NINTH SCHEDULE
  272. SCH-THE TENTH SCHEDULE.THE TENTH SCHEDULE
  273. SCH-THE ELEVENTH SCHEDULE.THE ELEVENTH SCHEDULE