The Insolvency and Bankruptcy Code, 2016
Browse the complete directory of sections, rules, and regulations under this statute.
THE INSOLVENCY AND BANKRUPTCY CODE, 2016 NO. 31 OF 2016 An Act to consolidate and amend the laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximisation of value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders including alteration in the order of priority of payment of Government dues and to establish an Insolvency and Bankruptcy Board of India, and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Sixty-seventh Year of the Republic of India as follows: - PART I PRELIMINARY
Section 1Short title, extent and commencement
Section 2Application
Section 3Definitions
Section 4Application of this Part
Section 5Definitions
Section 6Persons who may initiate corporate insolvency resolution process
Section 7Initiation of corporate insolvency resolution process by financial creditor.29
Section 8Insolvency resolution by operational creditor
Section 9Application for initiation of corporate insolvency resolution process by operational creditor. —35
Section 10Initiation of corporate insolvency resolution process by corporate applicant.40
Section 10ASuspension of initiation of corporate insolvency resolution process
Section 11Persons not entitled to make application
Section 11ADisposal of applications under section 54C and under section 7 or section 9 or section 10.47 48 49
Section 12Time-limit for completion of insolvency resolution process
Section 12AWithdrawal of application admitted under section 7, 9 or 10. —52
Section 13Declaration of moratorium and public announcement
Section 14Moratorium. -54
Section 15Public announcement of corporate insolvency resolution process
Section 16Appointment and tenure of interim resolution professional. -60
Section 17Management of affairs of corporate debtor by interim resolution professional
Section 18Duties of interim resolution professional
Section 19Persons to extend co-operation to interim resolution professional. -67
Section 20Management of operations of corporate debtor as going concern
Section 21Committee of creditors
Section 22Appointment of resolution professional
Section 23Resolution professional to conduct corporate insolvency resolution process
Section 24Meeting of committee of creditors
Section 25Duties of resolution professional
Section 25ARights and duties of authorised representative of financial creditors. —83
Section 26Application in respect of certain transactions or trading not to affect processes. -85
Section 27Replacement of resolution professional by committee of creditors
Section 28Approval of committee of creditors for certain actions
Section 28ATransfer of assets of guarantor of corporate debtor during process. -88
Section 29Preparation of information memorandum
Section 29APersons not eligible to be resolution applicant. -89
Section 30Submission of resolution plan
Section 31Approval of resolution plan
Section 32Appeal
Section 32ALiability for prior offences, etc.107
Section 33Initiation of liquidation
Section 34Appointment of liquidator and fee to be paid
Section 34AReplacement of liquidator by committee of creditors.121
Section 35Powers and duties of liquidator
Section 36Liquidation estate
Section 37Powers of liquidator to access information
Section 38Consolidation of claims
Section 39Verification of claims
Section 40Admission or rejection of claims
Section 41Determination of valuation of claims
Section 42Appeal against the decision of liquidator
Section 43Preferential transactions and relevant time
Section 44Orders in case of preferential transactions
Section 45Avoidance of undervalued transactions
Section 46Relevant period for undervalued transactions
Section 47Application by creditors, member or partner in case of certain transactions or trading
Section 48Order in cases of undervalued transactions
Section 49Transactions defrauding creditors
Section 50Extortionate credit transactions
Section 51Orders of Adjudicating Authority in respect of extortionate credit transactions
Section 52Secured creditor in liquidation proceedings. -140
Section 53Distribution of assets. -141
Section 54Dissolution of corporate debtor. -142
Section 54ACorporate debtors eligible for pre-packaged insolvency resolution process.143
Section 54BDuties of insolvency professional before initiation of pre-packaged insolvency resolution process
Section 54CApplication to initiate pre-packaged insolvency resolution process.144
Section 54DTime-limit for completion of pre-packaged insolvency resolution process
Section 54EDeclaration of moratorium and public announcement during pre-packaged insolvency resolution process
Section 54FDuties and powers of resolution professional during pre-packaged insolvency resolution process.145
Section 54GList of claims and preliminary information memorandum
Section 54HManagement of affairs of corporate debtor
Section 54-ICommittee of creditors
Section 54JVesting management of corporate debtor with resolution professional
Section 54KConsideration and approval of resolution plan
Section 54LApproval of resolution plan.146
Section 54MAppeal against order under section 54L
Section 54NTermination of pre-packaged insolvency resolution process
Section 54OInitiation of insolvency resolution process
Section 54PApplication of provisions of Chapters II, III, VI, and VII to this Chapter
Section 58ACorporate debtors eligible for creditor-initiated insolvency resolution process
Section 58BInitiation of creditor-initiated insolvency resolution process
Section 58CObjections to commencement of process
Section 58DPeriod for completion of creditor-initiated insolvency resolution process
Section 58EDuties and powers of resolution professional
Section 58FManagement of affairs of corporate debtors and cooperation of its personnel
Section 58GMoratorium
Section 58HConversion of creditor-initiated insolvency resolution process to corporate insolvency resolution process
Section 58-IWithdrawal of public announcement made under section 58B
Section 58JApplication for approval of resolution plan
Section 58KApplication of provisions of Chapters II, III, VI and VII to this Chapter
Section 59Voluntary liquidation of corporate persons. -150
Section 59APower to make rules for initiating proceedings for coordination and cooperation of corporate debtors of
Section 67AInsertion of new sections 67B and 67C
Section 60Adjudicating Authority for corporate persons
Section 61Appeals and Appellate Authority
Section 62Appeal to Supreme Court
Section 63Civil court not to have jurisdiction
Section 64Expeditious disposal of applications
Section 64APenalty for initiating frivolous or vexatious proceedings under Part II
Section 65Fraudulent or malicious initiation of proceedings
Section 66Fraudulent or wrongful trading
Section 67Proceedings under section 66
Section 67AFraudulent management of corporate debtor during pre-packaged insolvency resolution process or creditor
Section 67BContravention of moratorium or resolution plan
Section 67CContravention for non-disclosure of dispute or payment of debt by operational creditor
Section 68Punishment for concealment of property
Section 69Punishment for transactions defrauding creditors
Section 70Punishment for misconduct in course of corporate insolvency resolution process
Section 71Punishment for falsification of books of corporate debtor
Section 72Punishment for wilful and material omissions from statements relating to affairs of corporate debtor
Section 73Punishment for false representations to creditors
Section 74Omitted.]162
Section 75Punishment for false information furnished in application
Section 76Omitted
Section 77Punishment for providing false information in application made by corporate debtor
Section 77APunishment for offences related to pre-packaged insolvency resolution process
Section 78Application
Section 79Definitions
Section 80Eligibility for making an application
Section 81Application for fresh start order
Section 82Appointment of resolution professional
Section 83Examination of application by resolution professional
Section 84Admission or rejection of application by Adjudicating Authority
Section 85Effect of admission of application
Section 86Objections by creditor and their examination by resolution professional
Section 87Application against decision of resolution professional
Section 88General duties of debtor
Section 89Replacement of resolution professional
Section 90Directions for compliances of restrictions, etc
Section 91Revocation of order admitting application
Section 92Discharge order
Section 93Standard of conduct
Section 94Application by debtor to initiate insolvency resolution process
Section 95Application by creditor to initiate insolvency resolution process
Section 96Interim- moratorium
Section 97Appointment of resolution professional
Section 98Replacement of resolution professional
Section 99Submission of report by resolution professional
Section 100Admission or rejection of application
Section 101Moratorium
Section 102Public notice and claims from creditors
Section 103Registering of claims by creditors
Section 104Preparation of list of creditors
Section 105Repayment plan
Section 106Report of resolution professional on repayment plan
Section 107Summoning of meeting of creditors
Section 108Conduct of meeting of creditors
Section 109Voting rights in meeting of creditors
Section 110Rights of secured creditors in relation to repayment plan
Section 111Approval of repayment plan by creditors
Section 112Report of meeting of creditors on repayment plan
Section 113Notice of decisions taken at meeting of creditors
Section 114Order of Adjudicating Authority on repayment plan
Section 115Effect of order of Adjudicating Authority on repayment plan
Section 116Implementation and supervision of repayment plan
Section 117Completion of repayment plan
Section 118Repayment plan coming to end prematurely
Section 119Discharge order
Section 120Standard of conduct
Section 121Application for bankruptcy
Section 122Application by debtor
Section 123Application by creditor
Section 124Effect of application
Section 125Appointment of insolvency professional as bankruptcy trustee
Section 126Bankruptcy order
Section 127Validity of bankruptcy order
Section 128Effect of bankruptcy order
Section 129Statement of financial position
Section 130Public notice inviting claims from creditors
Section 131Registration of claims
Section 132Preparation of list of creditors
Section 133Summoning of meeting of creditors
Section 134Conduct of meeting of creditors
Section 135Voting rights of creditors
Section 136Administration and distribution of estate of bankrupt
Section 137Completion of administration
Section 138Discharge order
Section 139Effect of discharge
Section 140Disqualification of bankrupt
Section 141Restrictions on bankrupt
Section 142Modification or recall of bankruptcy order
Section 143Standard of conduct
Section 144Fees of bankruptcy trustee
Section 145Replacement of bankruptcy trustee
Section 146Resignation by bankruptcy trustee
Section 147Vacancy in office of bankruptcy trustee
Section 148Release of bankruptcy trustee
Section 149Functions of bankruptcy trustee
Section 150Duties of bankrupt towards bankruptcy trustee
Section 151Rights of bankruptcy trustee
Section 152General powers of bankruptcy trustee
Section 153Approval of creditors for certain acts
Section 154Vesting of estate of bankrupt in bankruptcy trustee
Section 155Estate of bankrupt
Section 156Delivery of property and documents to bankruptcy trustee
Section 157Acquisition of control by bankruptcy trustee
Section 158Restrictions on disposition of property
Section 159After-acquired property of bankrupt
Section 160Onerous property of bankrupt
Section 161Notice to disclaim onerous property
Section 162Disclaimer of leaseholds
Section 163Challenge against disclaimed property
Section 164Undervalued transactions
Section 164ATransactions defrauding creditors
Section 165Preference transactions
Section 166Effect of order
Section 167Extortionate credit transactions
Section 168Obligations under contracts
Section 169Continuance of proceedings on death of bankrupt
Section 170Administration of estate of deceased bankrupt
Section 171Proof of debt
Section 172Proof of debt by secured creditors
Section 173Mutual credit and set-off
Section 174Distribution of interim dividend
Section 175Distribution of property
Section 176Final dividend
Section 177Claims of creditors
Section 178Priority of payment of debts
Section 179Adjudicating Authority for individuals and partnership firms
Section 180Civil court not to have jurisdiction
Section 181Appeal to Debt Recovery Appellate Tribunal
Section 182Appeal to Supreme Court
Section 183Expeditious disposal of applications
Section 183APenalty for initiating frivolous or vexatious proceedings under Part III
Section 184Punishment for false information etc
Section 185Punishment for contravention of provisions
Section 186Punishment for false information, concealment, etc., by bankrupt
Section 187Punishment for certain actions
Section 188Establishment and incorporation of Board
Section 189Constitution of Board
Section 190Removal of member from office
Section 191Powers of Chairperson
Section 192Meetings of Board
Section 193Member not to participate in meetings in certain cases
Section 194Vacancies etc., not to invalidate proceedings of Board, and Officers and employees of Board
Section 195Power to designate financial sector regulator
Section 196Powers and functions of Board
Section 197Constitution of advisory committee, executive committee or other committee
Section 198Condonation of delay
Section 199No person to function as insolvency professional agency without valid certificate of registration
Section 200Principles governing registration of insolvency professional agency
Section 201Registration of insolvency professional agency
Section 202Appeal to National Company Law Appellate Tribunal
Section 203Governing Board of insolvency professional agency
Section 204Functions of insolvency professional agencies
Section 205Insolvency professional agencies to make bye-laws
Section 206Enrolled and registered persons to act as insolvency professionals
Section 207Registration of insolvency professionals
Section 208Functions and obligations of insolvency professionals
Section 209No person to function as information utility without certificate of registration
Section 210Registration of information utility
Section 211Appeal to National Company Law Appellate Tribunal
Section 212Governing Board of information utility
Section 213Core services, etc
Section 214Obligations of information utility
Section 215Submission and authentication of financial information to information utilities
Section 216Rights and obligations of persons submitting financial information
Section 217Complaints against service providers
Section 218Investigation of service providers
Section 219Show cause notice to service provider
Section 220Appointment of disciplinary committee
Section 221Grants by Central Government
Section 222Board’s Fund
Section 223Accounts and audit
Section 224Insolvency and Bankruptcy Fund
Section 225Power of Central Government to issue directions
Section 226Power of Central Government to supersede Board
Section 227Power of Central Government to notify financial sector providers etc
Section 228Budget
Section 229Annual Report
Section 230Delegation
Section 231Bar of jurisdiction
Section 232Members, officers and employees of the Board to be public servants
Section 233Protection of action taken in good faith
Section 234Agreements with foreign countries
Section 235Letter of request to a country outside India in certain cases
Section 235APower of Adjudicating Authority to impose penalties
Section 236Trial of offences by Special Court
Section 237Appeal and revision
Section 238Provisions of this Code to override other laws
Section 238ALimitation
Section 239Power to make rules
Section 240Power to make regulations
Section 240AApplication of this Code to micro, small and medium enterprises
Section 240BElectronic portal for facilitating procedures
Section 240CPower to make rules for cross-border insolvency
Section 241Rules and Regulations to be laid before Parliament
Section 242Power to remove difficulties
Section 243Repeal of certain enactments and savings
Section 244Transitional provisions
Section 245Amendments of Act 9 of 1932
Section 246Amendments of Act 1 of 1944
Section 247Amendments of Act 43 of 1961
Section 248Amendments of Act 52 of 1962
Section 249Amendments of Act 51 of 1993
Section 250Amendments of Act 32 of 1994
Section 251Amendments of Act 54 of 2002
Section 252Amendments of Act 1of 2004
Section 253Amendments of Act 51of 2007
Section 254Amendments of Act 6 of 2009
Section 255Amendments of Act 18 of 2013
Section Schedule IThe First Schedule
Section Schedule IIThe Second Schedule
Section Schedule IIIThe Third Schedule
Section Schedule IVThe Fourth Schedule
Section Schedule VThe Fifth Schedule
Section Schedule VIThe Sixth Schedule
Section Schedule VIIThe Seventh Schedule
Section Schedule VIIIThe Eighth Schedule
Section Schedule IXThe Ninth Schedule
Section Schedule XThe Tenth Schedule
Section Schedule XIThe Eleventh Schedule
Section Schedule XIIThe Twelfth Schedule