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Legal Library
THE INSOLVENCY AND BANKRUPTCY CODE, 2016 Last Update 01-6-2020
All Acts
THE INSOLVENCY AND BANKRUPTCY CODE, 2016 Last Update 01-6-2020
ACT NO. 31 OF 2016 · Enacted [28th May, 2016.] · 262 sections
PRELIMINARY
Section 1.
Short title, extent and commencement.
Section 2.
Application.
Section 3.
Definitions.
CHAPTER I PRELIMINARY
Section 4.
Application of this Part.
Section 5.
Definitions.
Section 78.
Application.
Section 79.
Definitions.
CHAPTER II CORPORATE INSOLVENCY RESOLUTION PROCESS
Section 6.
Persons who may initiate corporate insolvency resolution process.
Section 7.
Initiation of corporate insolvency resolution process by financial creditor.
Section 8.
Insolvency resolution by operational creditor.
Section 9.
Application for initiation of corporate insolvency resolution process by operational creditor.
Section 10.
Initiation of corporate insolvency resolution process by corporate applicant.
Section 11.
Persons not entitled to make application.
Section 12.
Time-limit for completion of insolvency resolution process.
Section 12A.
Withdrawal of application admitted under section 7, 9 or 10.
Section 13.
Declaration of moratorium and public announcement.
Section 14.
Moratorium.
Section 15.
Public announcement of corporate insolvency resolution process.
Section 16.
Appointment and tenure of interim resolution professional.
Section 17.
Management of affairs of corporate debtor by interim resolution professional.
Section 18.
Duties of interim resolution professional.
Section 19.
Personnel to extend co-operation to interim resolution professional.
Section 20.
Management of operations of corporate debtor as going concern.
Section 21.
Committee of creditors.
Section 22.
Appointment of resolution professional.
Section 23.
Resolution professional to conduct corporate insolvency resolution process.
Section 24.
Meeting of committee of creditors.
Section 25.
Duties of resolution professional.
Section 25A.
Rights and duties of authorised representative of financial creditors.
Section 26.
Application for avoidance of transactions not to affect proceedings.
Section 27.
Replacement of resolution professional by committee of creditors.
Section 28.
Approval of committee of creditors for certain actions.
Section 29.
Preparation of information memorandum.
Section 29A.
Person not eligible to be resolution applicant.
Section 30.
Submission of resolution plan.
Section 31.
Approval of resolution plan.
Section 32.
Appeal.
Section 32A.
Liability for prior offences, etc.
CHAPTER III LIQUIDATION PROCESS
Section 33.
Initiation of liquidation.
Section 34.
Appointment of liquidator and fee to be paid.
Section 35.
Powers and duties of liquidator.
Section 36.
Liquidation estate.
Section 37.
Powers of liquidator to access information.
Section 38.
Consolidation of claims.
Section 39.
Verification of claims.
Section 40.
Admission or rejection of claims.
Section 41.
Determination of valuation of claims.
Section 42.
Appeal against the decision of liquidator.
Section 43.
Preferential transactions and relevant time.
Section 44.
Orders in case of preferential transactions.
Section 45.
Avoidance of undervalued transactions.
Section 46.
Relevant period for avoidable transactions.
Section 47.
Application by creditor in cases of undervalued transactions.
Section 48.
Order in cases of undervalued transactions.
Section 49.
Transactions defrauding creditors.
Section 50.
Extortionate credit transactions.
Section 51.
Orders of Adjudicating Authority in respect of extortionate credit transactions.
Section 52.
Secured creditor in liquidation proceedings.
Section 53.
Distribution of assets.
Section 54.
Dissolution of corporate debtor.
CHAPTER IV FAST TRACK CORPORATE INSOLVENCY RESOLUTION PROCESS
Section 55.
Fast track corporate insolvency resolution process.
Section 56.
Time period for completion of fast track corporate insolvency resolution process.
Section 57.
Manner of initiating fast track corporate insolvency resolution process.
Section 58.
Applicability of Chapter II to this Chapter.
CHAPTER V VOLUNTARY LIQUIDATION OF CORPORATE PERSONS
Section 59.
Voluntary liquidation of corporate persons.
CHAPTER VI ADJUDICATING AUTHORITY FOR CORPORATE PERSONS
Section 60.
Adjudicating Authority for corporate persons.
Section 61.
Appeals and Appellate Authority.
Section 62.
Appeal to Supreme Court.
Section 63.
Civil court not to have jurisdiction.
Section 64.
Expeditious disposal of applications.
Section 65.
Fraudulent or malicious initiation of proceedings.
Section 66.
Fraudulent trading or wrongful trading.
Section 67.
Proceedings under section 66.
CHAPTER VII OFFENCES AND PENALTIES
Section 68.
Punishment for concealment of property.
Section 69.
Punishment for transactions defrauding creditors.
Section 70.
Punishment for misconduct in course of corporate insolvency resolution process.
Section 71.
Punishment for falsification of books of corporate debtor.
Section 72.
Punishment for wilful and material omissions from statements relating to affairs of corporate debtor.
Section 73.
Punishment for false representations to creditors.
Section 74.
Punishment for contravention of moratorium or the resolution plan.
Section 75.
Punishment for false information furnished in application.
Section 76.
Punishment for non-disclosure of dispute or repayment of debt by operational creditor.
Section 77.
Punishment for providing false information in application made by corporate debtor.
Section 184.
Punishment for false information, etc., by creditor in insolvency resolution process.
Section 185.
Punishment for contravention of provisions.
Section 186.
Punishment for false information, concealment, etc., by bankrupt.
Section 187.
Punishment for certain actions.
CHAPTER II FRESH START PROCESS
Section 80.
Eligibility for making an application.
Section 81.
Application for fresh start order.
Section 82.
Appointment of resolution professional.
Section 83.
Examination of application by resolution professional.
Section 84.
Admission or rejection of application by Adjudicating Authority.
Section 85.
Effect of admission of application.
Section 86.
Objections by creditor and their examination by resolution professional.
Section 87.
Application against decision of resolution professional.
Section 88.
General duties of debtor.
Section 89.
Replacement of resolution professional.
Section 90.
Directions for compliances of restrictions, etc.
Section 91.
Revocation of order admitting application.
Section 92.
Discharge order.
Section 93.
Standard of conduct.
CHAPTER III INSOLVENCY RESOLUTION PROCESS
Section 94.
Application by debtor to initiate insolvency resolution process.
Section 95.
Application by creditor to initiate insolvency resolution process.
Section 96.
Interim moratorium.
Section 97.
Appointment of resolution professional.
Section 98.
Replacement of resolution professional.
Section 99.
Submission of report by resolution professional.
Section 100.
Admission or rejection of application.
Section 101.
Moratorium.
Section 102.
Public notice and claims from creditors.
Section 103.
Registering of claims by creditors.
Section 104.
Preparation of list of creditors.
Section 105.
Repayment plan.
Section 106.
Report of resolution professional on repayment plan.
Section 107.
Summoning of meeting of creditors.
Section 108.
Conduct of meeting of creditors.
Section 109.
Voting rights in meeting of creditors.
Section 110.
Rights of secured creditors in relation to repayment plan.
Section 111.
Approval of repayment plan by creditors.
Section 112.
Report of meeting of creditors on repayment plan.
Section 113.
Notice of decisions taken at meeting of creditors.
Section 114.
Order of Adjudicating Authority on repayment plan.
Section 115.
Effect of order of Adjudicating Authority on repayment plan.
Section 116.
Implementation and supervision of repayment plan.
Section 117.
Completion of repayment plan.
Section 118.
Repayment plan coming to end prematurely.
Section 119.
Discharge order.
Section 120.
Standard of conduct.
CHAPTER IV BANKRUPTCY ORDER FOR INDIVIDUALS AND PARTNERSHIP FIRMS
Section 121.
Application for bankruptcy.
Section 122.
Application by debtor.
Section 123.
Application by creditor.
Section 124.
Effect of application.
Section 125.
Appointment of insolvency professional as bankruptcy trustee.
Section 126.
Bankruptcy order.
Section 127.
Validity of bankruptcy order.
Section 128.
Effect of bankruptcy order.
Section 129.
Statement of financial position.
Section 130.
Public notice inviting claims from creditors.
Section 131.
Registration of claims.
Section 132.
Preparation of list of creditors.
Section 133.
Summoning of meeting of creditors.
Section 134.
Conduct of meeting of creditors.
Section 135.
Voting rights of creditors.
Section 136.
Administration and distribution of estate of bankruptcy.
Section 137.
Completion of administration.
Section 138.
Discharge order.
Section 139.
Effect of discharge.
Section 140.
Disqualification of bankrupt.
Section 141.
Restrictions on bankrupt.
Section 142.
Modification or recall of bankruptcy order.
Section 143.
Standard of conduct.
Section 144.
Fees of bankruptcy trustee.
Section 145.
Replacement of bankruptcy trustee.
Section 146.
Resignation by bankruptcy trustee.
Section 147.
Vacancy in office of bankruptcy trustee.
Section 148.
Release of bankruptcy trustee.
CHAPTER V ADMINISTRATION AND DISTRIBUTION OF THE ESTATE OF THE BANKRUPT
Section 149.
Functions of bankruptcy trustee.
Section 150.
Duties of bankrupt towards bankruptcy trustee.
Section 151.
Rights of bankruptcy trustee.
Section 152.
General powers of bankruptcy trustee.
Section 153.
Approval of creditors for certain acts.
Section 154.
Vesting of estate of bankrupt in bankruptcy trustee.
Section 155.
Estate of bankrupt.
Section 156.
Delivery of property and documents to bankruptcy trustee.
Section 157.
Acquisition of control by bankruptcy trustee.
Section 158.
Restrictions on disposition of property.
Section 159.
After-acquired property of bankrupt.
Section 160.
Onerous property of bankrupt.
Section 161.
Notice to disclaim onerous property.
Section 162.
Disclaimer of leaseholds.
Section 163.
Challenge against disclaimed property.
Section 164.
Undervalued transactions.
Section 165.
Preference transactions.
Section 166.
Effect of order.
Section 167.
Extortionate credit transactions.
Section 168.
Obligations under contracts.
Section 169.
Continuance of proceedings on death of bankrupt.
Section 170.
Administration of estate of deceased bankrupt.
Section 171.
Proof of debt.
Section 172.
Proof of debt by secured creditors.
Section 173.
Mutual credit and set-off.
Section 174.
Distribution of interim dividend.
Section 175.
Distribution of property.
Section 176.
Final dividend.
Section 177.
Claims of creditors.
Section 178.
Priority of payment of debts.
CHAPTER VI ADJUDICATING AUTHORITY FOR INDIVIDUALS AND PARTNERSHIP FIRMS
Section 179.
Adjudicating authority for individuals and partnership firms.
Section 180.
Civil court not to have jurisdiction.
Section 181.
Appeal to Debt Recovery Appellate Tribunal.
Section 182.
Appeal to Supreme Court.
Section 183.
Expeditious disposal of applications.
CHAPTER I THE INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
Section 188.
Establishment and incorporation of Board.
Section 189.
Constitution of Board.
Section 190.
Removal of member from office.
Section 191.
Powers of Chairperson.
Section 192.
Meetings of Board.
Section 193.
Member not to participate in meetings in certain cases.
Section 194.
Vacancies, etc., not to invalidate proceedings of Board, Officers and employees of Board.
Section 195.
Power to designate financial sector regulator.
CHAPTER II POWERS AND FUNCTIONS OF THE BOARD
Section 196.
Powers and functions of Board.
Section 197.
Constitution of advisory committee, executive committee or other committee.
Section 198.
Condonation of delay.
CHAPTER III INSOLVENCY PROFESSIONAL AGENCIES
Section 199.
No person to function as insolvency professional agency without valid certificate of registration.
Section 200.
Principles governing registration of insolvency professional agency.
Section 201.
Registration of insolvency professional agency.
Section 202.
Appeal to National Company Law Appellate Tribunal.
Section 203.
Governing Board of insolvency professional agency.
Section 204.
Functions of insolvency professional agencies.
Section 205.
Insolvency professional agencies to make bye-laws.
CHAPTER IV INSOLVENCY PROFESSIONALS
Section 206.
Enrolled and registered persons to act as insolvency professionals.
Section 207.
Registration of insolvency professionals.
Section 208.
Functions and obligations of insolvency professionals.
CHAPTER V INFORMATION UTILITIES
Section 209.
No person to function as information utility without certificate of registration.
Section 210.
Registration of information utility.
Section 211.
Appeal to National Company Law Appellate Tribunal.
Section 212.
Governing Board of information utility.
Section 213.
Core services, etc., of information utilities.
Section 214.
Obligations of information utility.
Section 215.
Procedure for submission, etc., of financial information.
Section 216.
Rights and obligations of persons submitting financial information.
CHAPTER VI INSPECTION AND INVESTIGATION
Section 217.
Complaints against insolvency professional agency or its member or information utility.
Section 218.
Investigation of insolvency professional agency or its member or information utility.
Section 219.
Show cause notice to insolvency professional agency or its member or information utility.
Section 220.
Appointment of disciplinary committee.
CHAPTER VII FINANCE, ACCOUNTS AND AUDIT
Section 221.
Grants by Central Government.
Section 222.
Board’s Fund.
Section 223.
Accounts and audit.
MISCELLANEOUS
Section 224.
Insolvency and Bankruptcy Fund.
Section 225.
Power of Central Government to issue directions.
Section 226.
Power of Central Government to supersede Board.
Section 227.
Power of Central Government to notify financial service providers, etc.
Section 228.
Budget.
Section 229.
Annual report.
Section 230.
Delegation.
Section 231.
Bar of jurisdiction.
Section 232.
Members, officers and employees of Board to the public servants.
Section 233.
Protection of action taken in good faith.
Section 234.
Agreements with foreign countries.
Section 235.
Letter of request to a country outside India in certain cases.
Section 235A.
Punishment where no specific penalty or punishment is provided.
Section 236.
Trial of offences by Special Court.
Section 237.
Appeal and revision.
Section 238.
Provisions of this Code to override other laws.
Section 238A.
Limitation.
Section 239.
Power to make rules.
Section 240.
Power to make regulations.
Section 240A.
Application of this Code to micro, small and medium enterprises.
Section 241.
Rules and regulations to be laid before Parliament.
Section 242.
Power to remove difficulties.
Section 243.
Repeal of certain enactments and savings.
Section 244.
Transitional provisions.
Section 245.
Amendments of Act 9 of 1932.
Section 246.
Amendments of Act 1 of 1944.
Section 247.
Amendments of Act 43 of 1961.
Section 248.
Amendments of Act 52 of 1962.
Section 249.
Amendments of Act 51 of 1993.
Section 250.
Amendments of Act 32 of 1994.
Section 251.
Amendments of Act 54 of 2002.
Section 252.
Amendments of Act 1 of 2004.
Section 253.
Amendments of Act 51 of 2007.
Section 254.
Amendments of Act 6 of 2009.
Section 255.
Amendments of Act 18 of 2013.