Complied AIComplied AIBack to law libraryReading nowInsolvency and Bankruptcy Code, 20160 chapters · 285 sections · 12 schedules
Divisions17
Reading nowInsolvency and Bankruptcy CodeAct contents
Law libraryUpdates

Search this Act

Jump directly to a section by number or title.

Insolvency and Bankruptcy Code, 2016

Read the Act by chapter, jump straight to a section, or open the AI companion beside the provision you are reviewing.

Start with Section 1Browse contents

Act No. 31 of 2016 · Act structure

Choose a chapter or schedule

0 chapters · 285 sections · 12 schedules. Tap a division to reveal its provisions.

0 chapters · 285 sections · 12 schedules. Press ⌘K to jump.

1Preliminary3 sections
Part 1 overview
  • 1Short title, extent and commencement
  • 2Application
  • 3Definitions
1

Preliminary

3 sections
  • 1Short title, extent and commencement
  • 2Application
  • Browse 1 more provision
2Insolvency Resolution and Liquidation For Corporate Persons99 sections
Part 2 overview
  • 4Application of this Part
  • 5Definitions
  • 6Persons who may initiate corporate insolvency resolution process
  • 7Initiation of corporate insolvency resolution process by financial creditor
  • 8Insolvency resolution by operational creditor
  • 9Application for initiation of corporate insolvency resolution process by operational creditor
  • 10Initiation of corporate insolvency resolution process by corporate applicant
  • 10ASuspension of initiation of corporate insolvency resolution process
  • 11Persons not entitled to make application
  • 11ADisposal of applications under section 54C and under section 7 or section 9 or section 10
  • 12Time-limit for completion of insolvency resolution process
  • 12AWithdrawal of application admitted under section 7, 9 or 10
  • 13Declaration of moratorium and public announcement
  • 14Moratorium
  • 15Public announcement of corporate insolvency resolution process
  • 16Appointment and tenure of interim resolution professional
  • 17Management of affairs of corporate debtor by interim resolution professional
  • 18Duties of interim resolution professional
  • 19Persons to extend cooperation to interim resolution professional
  • 20Management of operations of corporate debtor as going concern
  • 21Committee of creditors
  • 22Appointment of resolution professional
  • 23Resolution professional to conduct corporate insolvency resolution process
  • 24Meeting of committee of creditors
  • 25Duties of resolution professional
  • 25ARights and duties of authorised representative of financial creditors
  • 26Application in respect of certain transactions or trading not to affect processes
  • 27Replacement of resolution professional by committee of creditors
  • 28Approval of committee of creditors for certain actions
  • 28ATransfer of assets of guarantor of corporate debtor during process
  • 29Preparation of information memorandum
  • 29APerson not eligible to be resolution applicant
  • 30Submission of resolution plan
  • 31Approval of resolution plan
  • 32Appeal
  • 32ALiability for prior offences, etc
  • 33Initiation of liquidation
  • 34Appointment of liquidator and fee to be paid
  • 34AReplacement of liquidator by committee of creditors
  • 35Powers and duties of liquidator
  • 36Liquidation estate
  • 37Powers of liquidator to access information
  • 38Omitted
  • 39Omitted
  • 40Omitted
  • 41Omitted
  • 42Omitted
  • 43Preferential transactions and relevant time
  • 44Orders in case of preferential transactions
  • 45Avoidance of undervalued transactions
  • 46Relevant period for undervalued transactions
  • 47Application by creditors, member or partner in case of certain transactions or trading
  • 48Order in cases of undervalued transactions
  • 49Transactions defrauding creditors
  • 50Extortionate credit transactions
  • 51Order of Adjudicating Authority in respect of extortionate credit transactions
  • 52Secured creditor in liquidation proceedings
  • 53Distribution of assets
  • 54Dissolution of corporate debtor
  • 54ACorporate debtors eligible for pre-packaged insolvency resolution process
  • 54BDuties of insolvency professional before initiation of pre-packaged insolvency resolution process
  • 54CApplication to initiate pre-packaged insolvency resolution process
  • 54DTime-limit for completion of pre-packaged insolvency resolution process
  • 54EDeclaration of moratorium and public announcement during pre-packaged insolvency resolution process
  • 54FDuties and powers of resolution professional during pre-packaged insolvency resolution process
  • 54GList of claims and preliminary information memorandum
  • 54HManagement of affairs of corporate debtor
  • 54ICommittee of creditors
  • 54JVesting management of corporate debtor with resolution professional
  • 54KConsideration and approval of resolution plan
  • 54LApproval of resolution plan
  • 54MAppeal against order under section 54L
  • 54NTermination of pre-packaged insolvency resolution process
  • 54OInitiation of corporate insolvency resolution process
  • 54PApplication of provisions of Chapters II, III, VI and VII to this Chapter
  • 59Voluntary liquidation of corporate persons
  • 60Adjudicating authority for corporate persons
  • 61Appeals and Appellate Authority
  • 62Appeal to Supreme Court
  • 63Civil court not to have jurisdiction
  • 64Expeditious disposal of applications
  • 64APenalty for initiating frivolous or vexatious proceedings under Part II
  • 65Fraudulent or malicious initiation of proceedings
  • 66Fraudulent or wrongful trading
  • 67Proceedings under section 66
  • 67AFraudulent management of corporate debtor during pre-packaged insolvency resolution process
  • 67BContravention of moratorium or resolution plan
  • 67CContravention for non-disclosure of dispute or payment of debt by operational creditor
  • 68Punishment for concealment of property
  • 69Punishment for transactions defrauding creditors
  • 70Punishment for misconduct in course of corporate insolvency resolution process
  • 71Punishment for falsification of books of corporate debtor
  • 72Punishment for wilful and material omissions from statements relating to affairs of corporate debtor
  • 73Punishment for false representations to creditors
  • 74Omitted
  • 75Punishment for false information furnished in application
  • 76Omitted
  • 77Punishment for providing false information in application made by corporate debtor
  • 77APunishment for offences related to prepackaged insolvency resolution process
2

Insolvency Resolution and Liquidation For Corporate Persons

99 sections
  • 4Application of this Part
  • 5Definitions
  • Browse 97 more provisions
3Insolvency Resolution and Bankruptcy For Individuals and Partnership Firms112 sections
Part 3 overview
  • 78Application
  • 79Definitions
  • 80Eligibility for making an application
  • 81Application for fresh start order
  • 82Appointment of resolution professional
  • 83Examination of application by resolution professional
  • 84Admission or rejection of application by Adjudicating Authority
  • 85Effect of admission of application
  • 86Objections by creditor and their examination by resolution professional
  • 87Application against decision of resolution professional
  • 88General duties of debtor
  • 89Replacement of resolution professional
  • 90Directions for compliances of restrictions, etc
  • 91Revocation of order admitting application
  • 92Discharge order
  • 93Standard of conduct
  • 94Application by debtor to initiate insolvency resolution process
  • 95Application by creditor to initiate insolvency resolution process
  • 96Interim moratorium
  • 97Appointment of resolution professional
  • 98Replacement of resolution professional
  • 99Submission of report by resolution professional
  • 100Admission or rejection of application
  • 101Moratorium
  • 102Public notice and claims from creditors
  • 103Registering of claims by creditors
  • 104Preparation of list of creditors
  • 105Repayment plan
  • 106Report of resolution professional on repayment plan
  • 107Summoning of meeting of creditors
  • 108Conduct of meeting of creditors
  • 109Voting rights in meeting of creditors
  • 110Rights of secured creditors in relation to repayment plan
  • 111Approval of repayment plan by creditors
  • 112Report of meeting of creditors on repayment plan
  • 113Notice of decisions taken at meeting of creditors
  • 114Order of Adjudicating Authority on repayment plan
  • 115Effect of order of Adjudicating Authority on repayment plan
  • 116Implementation and supervision of repayment plan
  • 117Completion of repayment plan
  • 118Repayment plan coming to end prematurely
  • 119Discharge order
  • 120Standard of conduct
  • 121Application for bankruptcy
  • 122Application by debtor
  • 123Application by creditor
  • 124Effect of application
  • 125Appointment of insolvency professional as bankruptcy trustee
  • 126Bankruptcy order
  • 127Validity of bankruptcy order
  • 128Effect of bankruptcy order
  • 129Statement of financial position
  • 130Public notice inviting claims from creditors
  • 131Registration of claims
  • 132Preparation of list of creditors
  • 133Summoning of meeting of creditors
  • 134Conduct of meeting of creditors
  • 135Voting rights of creditors
  • 136Administration and distribution of estate of bankrupt
  • 137Completion of administration
  • 138Discharge order
  • 139Effect of discharge
  • 140Disqualification of bankrupt
  • 141Restrictions on bankrupt
  • 142Modification or recall of bankruptcy order
  • 143Standard of conduct
  • 144Fees of bankruptcy trustee
  • 145Replacement of bankruptcy trustee
  • 146Resignation by bankruptcy trustee
  • 147Vacancy in office of bankruptcy trustee
  • 148Release of bankruptcy trustee
  • 149Functions of bankruptcy trustee
  • 150Duties of bankrupt towards bankruptcy trustee
  • 151Rights of bankruptcy trustee
  • 152General powers of bankruptcy trustee
  • 153Approval of creditors for certain acts
  • 154Vesting of estate of bankrupt in bankruptcy trustee
  • 155Estate of bankrupt
  • 156Delivery of property and documents to bankruptcy trustee
  • 157Acquisition of control by bankruptcy trustee
  • 158Restrictions on disposition of property
  • 159After-acquired property of bankrupt
  • 160Onerous property of bankrupt
  • 161Notice to disclaim onerous property
  • 162Disclaimer of leaseholds
  • 163Challenge against disclaimed property
  • 164Undervalued transactions
  • 164ATransactions defrauding creditors
  • 165Preference transactions
  • 166Effect of order
  • 167Extortionate credit transactions
  • 168Obligation under contracts
  • 169Continuance of proceedings on death of bankrupt
  • 170Administration of estate of deceased bankrupt
  • 171Proof of debt
  • 172Proof of debt by secured creditors
  • 173Mutual credit and set-off
  • 174Distribution of interim dividend
  • 175Distribution of property
  • 176Final dividend
  • 177Claims of creditors
  • 178Priority of payment of debts
  • 179Adjudicating authority for individuals and partnership firms
  • 180Civil court not to have jurisdiction
  • 181Appeal to Debt Recovery Appellate Tribunal
  • 182Appeal to Supreme Court
  • 183Expeditious disposal of applications
  • 183APenalty for initiating frivolous or vexatious proceedings under Part III
  • 184Punishment for false information, etc., by creditor in insolvency resolution process
  • 185Punishment for contravention of provisions
  • 186Punishment for false information, concealment, etc., by bankrupt
  • 187Punishment for certain actions
3

Insolvency Resolution and Bankruptcy For Individuals and Partnership Firms

112 sections
  • 78Application
  • 79Definitions
  • Browse 110 more provisions
4Regulation of Insolvency Professionals, Agencies and Information Utilities36 sections
Part 4 overview
  • 188Establishment and incorporation of Board
  • 189Constitution of Board
  • 190Removal of member from office
  • 191Powers of Chairperson
  • 192Meetings of Board
  • 193Member not to participate in meetings in certain cases
  • 194Vacancies, etc., not to invalidate proceedings of Board, Officers and employees of Board
  • 195Power to designate financial sector regulator
  • 196Powers and functions of Board
  • 197Constitution of advisory committee, executive committee or other committee
  • 198Condonation of delay
  • 199No person to function as insolvency professional agency without valid certificate of registration
  • 200Principles governing registration of insolvency professional agency
  • 201Registration of insolvency professional agency
  • 202Appeal to National Company Law Appellate Tribunal
  • 203Governing Board of insolvency professional agency
  • 204Functions of insolvency professional agencies
  • 205Insolvency professional agencies to make bye-laws
  • 206Enrolled and registered persons to act as insolvency professionals
  • 207Registration of insolvency professionals
  • 208Functions and obligations of insolvency professionals
  • 209No person to function as information utility without certificate of registration
  • 210Registration of information utility
  • 211Appeal to National Company Law Appellate Tribunal
  • 212Governing Board of information utility
  • 213Core services, etc., of information utilities
  • 214Obligation of information utility
  • 215Submission and authentication of financial information to information utilities
  • 216Rights and obligations of persons submitting financial information
  • 217Complaints against service providers
  • 218Investigation of service providers
  • 219Show cause notice to service provider
  • 220Appointment of disciplinary committee
  • 221Grants by Central Government
  • 222Board’s Fund
  • 223Accounts and audit
4

Regulation of Insolvency Professionals, Agencies and Information Utilities

36 sections
  • 188Establishment and incorporation of Board
  • 189Constitution of Board
  • Browse 34 more provisions
5Miscellaneous35 sections
Part 5 overview
  • 224Insolvency and Bankruptcy Fund
  • 225Power of Central Government to issue directions
  • 226Power of Central Government to supersede Board
  • 227Power of Central Government to notify financial service providers, etc
  • 228Budget
  • 229Annual report
  • 230Delegation
  • 231Bar of jurisdiction
  • 232Members, officers and employees of Board to the public servants
  • 233Protection of action taken in good faith
  • 234Agreements with foreign countries
  • 235Letter of request to a country outside India in certain cases
  • 235APower of Adjudicating Authority to impose penalties
  • 236Trial of offences by Special Court
  • 237Appeal and revision
  • 238Provisions of this Code to override other laws
  • 238ALimitation
  • 239Power to make rules
  • 240Power to make regulations
  • 240AApplication of this Code to micro, small and medium enterprises
  • 241Rules and regulations to be laid before Parliament
  • 242Power to remove difficulties
  • 243Repeal of certain enactments and savings
  • 244Transitional provisions
  • 245Amendments of Act 9 of 1932
  • 246Amendments of Act 1 of 1944
  • 247Amendments of Act 43 of 1961
  • 248Amendments of Act 52 of 1962
  • 249Amendments of Act 51 of 1993
  • 250Amendments of Act 32 of 1994
  • 251Amendments of Act 54 of 2002
  • 252Amendments of Act 1 of 2004
  • 253Amendments of Act 51 of 2007
  • 254Amendments of Act 6 of 2009
  • 255Amendments of Act 18 of 2013
5

Miscellaneous

35 sections
  • 224Insolvency and Bankruptcy Fund
  • 225Power of Central Government to issue directions
  • Browse 33 more provisions
SAmendment to the Indian Partnership Act, 19321 schedule
Schedule overview
  • SSchedule — Amendment to the Indian Partnership Act, 1932
S

Amendment to the Indian Partnership Act, 1932

1 schedule
  • SSchedule — Amendment to the Indian Partnership Act, 1932
SAmendment to the Central Excise Act, 19441 schedule
Schedule 2 overview
  • SSchedule 2 — Amendment to the Central Excise Act, 1944
S

Amendment to the Central Excise Act, 1944

1 schedule
  • SSchedule 2 — Amendment to the Central Excise Act, 1944
SAmendment to the Income-Tax Act, 19611 schedule
Schedule 3 overview
  • SSchedule 3 — Amendment to the Income-tax Act, 1961
S

Amendment to the Income-Tax Act, 1961

1 schedule
  • SSchedule 3 — Amendment to the Income-tax Act, 1961
SAmendment to the Customs Act, 19621 schedule
Schedule 4 overview
  • SSchedule 4 — Amendment to the Customs Act, 1962
S

Amendment to the Customs Act, 1962

1 schedule
  • SSchedule 4 — Amendment to the Customs Act, 1962
SAmendments to the Recovery of Debts Due to Banks and Financial Institutions Act, 19931 schedule
Schedule 5 overview
  • SSchedule 5 — Amendments to the Recovery of Debts Due to Banks and Financial Institutions Act, 1993
S

Amendments to the Recovery of Debts Due to Banks and Financial Institutions Act, 1993

1 schedule
  • SSchedule 5 — Amendments to the Recovery of Debts Due to Banks and Financial Institutions Act, 1993
SAmendment to the Finance Act, 19941 schedule
Schedule 6 overview
  • SSchedule 6 — Amendment to the Finance Act, 1994
S

Amendment to the Finance Act, 1994

1 schedule
  • SSchedule 6 — Amendment to the Finance Act, 1994
SAmendment to the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 20021 schedule
Schedule 7 overview
  • SSchedule 7 — Amendment to the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
S

Amendment to the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002

1 schedule
  • SSchedule 7 — Amendment to the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
SAmendment to the Sick Industrial Companies (Special Provisions) Repeal Act, 20031 schedule
Schedule 8 overview
  • SSchedule 8 — Amendment to the Sick Industrial Companies (Special Provisions) Repeal Act, 2003
S

Amendment to the Sick Industrial Companies (Special Provisions) Repeal Act, 2003

1 schedule
  • SSchedule 8 — Amendment to the Sick Industrial Companies (Special Provisions) Repeal Act, 2003
SAmendments to the Payment and Settlement Systems Act, 20071 schedule
Schedule 9 overview
  • SSchedule 9 — Amendments to the Payment and Settlement Systems Act, 2007
S

Amendments to the Payment and Settlement Systems Act, 2007

1 schedule
  • SSchedule 9 — Amendments to the Payment and Settlement Systems Act, 2007
SAmendment to the Limited Liability Partnership Act, 20081 schedule
Schedule 10 overview
  • SSchedule 10 — Amendment to the Limited Liability Partnership Act, 2008
S

Amendment to the Limited Liability Partnership Act, 2008

1 schedule
  • SSchedule 10 — Amendment to the Limited Liability Partnership Act, 2008
SAmendments to the Companies Act, 20131 schedule
Schedule 11 overview
  • SSchedule 11 — Amendments to the Companies Act, 2013
S

Amendments to the Companies Act, 2013

1 schedule
  • SSchedule 11 — Amendments to the Companies Act, 2013
SActs For the Purposes of Clause (D) of Section 29a1 schedule
Schedule 12 overview
  • SSchedule 12 — Acts for the purposes of clause (d) of section 29A
S

Acts For the Purposes of Clause (D) of Section 29a

1 schedule
  • SSchedule 12 — Acts for the purposes of clause (d) of section 29A