Bare Acts

The Insolvency and Bankruptcy Code, 2016

2016 · Ministry of Finance · In force · synced 05 Jul 2026

1.Short title, extent and commencement 2.Application 3.Definitions

I — INSOLVENCY RESOLUTION AND LIQUIDATION FOR CORPORATE PERSONS PRELIMINARY

4.Application of this Part 5.Definitions

6.Persons who may initiate corporate insolvency resolution process 7.Initiation of corporate insolvency resolution process by financial creditor 8.Insolvency resolution by operational creditor 9.Application for initiation of corporate insolvency resolution process by operational creditor 10.Initiation of corporate insolvency resolution process by corporate applicant 10A.Suspension of initiation of corporate insolvency resolution process 11.Persons not entitled to make application

III

III — LIQUIDATION PROCESS

33.Initiation of liquidation 34.Appointment of liquidator and fee to be paid 35.Powers and duties of liquidator 36.Liquidation estate 37.Powers of liquidator to access information 38.Consolidation of claims 39.Verification of claims 40.Admission or rejection of claims 41.Determination of valuation of claims 42.Appeal against the decision of liquidator 43.Preferential transactions and relevant time 44.Orders in case of preferential transactions 45.Avoidance of undervalued transactions 46.Relevant period for avoidable transactions 47.Application by creditor in cases of undervalued transactions 48.Order in cases of undervalued transactions 49.Transactions defrauding creditors 50.Extortionate credit transactions 51.Order of Adjudicating Authority in respect of extortionate credit transactions 52.Second creditor in liquidation proceedings 53.Distribution of assets 54.Dissolution of corporate debtor 54A.Corporate debtors eligible for pre-packaged insolvency resolution process 54B.Duties of insolvency professional before initiation of pre-packaged insolvency resolution process 54C.Application to initiate pre-packaged insolvency resolution process 54D.Time-limit for completion of pre-packaged insolvency resolution process 54E.Declaration of moratorium and public announcement during prepackaged insolvency resolution process 54F.Duties and powers of resolution professional during prepackaged insolvency resolution process 54G.List of claims and preliminary information memorandum 54H.Management of affairs of corporate debtor 54J.Vesting management of corporate debtor with resolution professional 54K.Consideration and approval of resolution plan 54L.Approval of resolution plan 54M.Appeal against order under section 54L 54N.Termination of prepackaged insolvency resolution process 54P.Application of provisions of Chapters II, III, VI and VII to this Chapter

55.Fast track corporate insolvency resolution process 56.Time period for completion of fast track corporate insolvency resolution process 57.Manner of initiating fast track corporate insolvency resolution process 58.Applicability of Chapter II to this Chapter

59.Voluntary liquidation of corporate persons

VI — ADJUDICATING AUTHORITY FOR CORPORATE PERSONS

60.Adjudicating authority for corporate persons 61.Appeals and Appellate Authority 62.Appeal to Supreme Court 63.Civil court not to have jurisdiction 64.Expeditious disposal of applications 65.Fraudulent or malicious initiation of proceedings 66.Fraudulent trading or wrongful trading 67.Proceedings under section 66 67A.Fraudulent management of corporate debtor during pre-packaged insolvency resolution process

VII — OFFENCES AND PENALTIES

68.Punishment for concealment of property 69.Punishment for transactions defrauding creditors 70.Punishment for misconduct in course of corporate insolvency resolution process 71.Punishment for falsification of books of corporate debtor 72.Punishment for wilful and material omissions from statements relating to affairs of corporate debtor 73.Punishment for false representations to creditors 74.Punishment for contravention of moratorium or the resolution plan 75.Punishment for false information furnished in application 76.Punishment for non-disclosure of dispute or 1[payment] of debt by operational creditor 77.Punishment for providing false information in application made by corporate debtor 77A.Punishment for offences related to prepackaged insolvency resolution process

I — INSOLVENCY RESOLUTION AND BANKRUPTCY FOR INDIVIDUALS AND PARTNERSHIP FIRMS PRELIMINARY

78.Application 79.Definitions

II — FRESH START PROCESS

80.Eligibility for making an application 81.Application for fresh start order 82.Appointment of resolution professional 83.Examination of application by resolution professional 84.Admission or rejection of application by Adjudicating Authority 85.Effect of admission of application 86.Objections by creditor and their examination by resolution professional 87.Application against decision of resolution professional 88.General duties of debtor 89.Replacement of resolution professional 90.Directions for compliances of restrictions, etc 91.Revocation of order admitting application 92.Discharge order 93.Standard of conduct

III — INSOLVENCY RESOLUTION PROCESS

94.Application by debtor to initiate insolvency resolution process 95.Application by creditor to initiate insolvency resolution process 96.Interim moratorium 97.Appointment of resolution professional 98.Replacement of resolution professional 99.Submission of report by resolution professional 100.Admission or rejection of application 101.Moratorium 102.Public notice and claims from creditors 103.Registering of claims by creditors 104.Preparation of list of creditors 105.Repayment plan 106.Report of resolution professional on repayment plan 107.Summoning of meeting of creditors 108.Conduct of meeting of creditors 109.Voting rights in meeting of creditors 110.Rights of secured creditors in relation to repayment plan 111.Approval of repayment plan by creditors 112.Report of meeting of creditors on repayment plan 113.Notice of decisions taken at meeting of creditors 114.Order of Adjudicating Authority on repayment plan 115.Effect of order of Adjudicating Authority on repayment plan 116.Implementation and supervision of repayment plan 117.Completion of repayment plan 118.Repayment plan coming to end prematurely 119.Discharge order 120.Standard of conduct

IV — BANKRUPTCY ORDER FOR INDIVIDUALS AND PARTNERSHIP FIRM

121.Application for bankruptcy 122.Application by debtor 123.Application by creditor 124.Effect of application 125.Appointment of insolvency professional as bankruptcy trustee 126.Bankruptcy order 127.Validity of bankruptcy order 128.Effect of bankruptcy order 129.Statement of financial position 130.Public notice inviting claims from creditors 131.Registration of claims 132.Preparation of list of creditors 133.Summoning of meeting of creditors 134.Conduct of meeting of creditors 135.Voting rights of creditors 136.Administration and distribution of estate of bankrupt 137.Completion of administration 138.Discharge order 139.Effect of discharge 140.Disqualification of bankrupt 141.Restrictions on bankrupt 142.Modification or recall of bankruptcy order 143.Standard of conduct 144.Fees of bankruptcy order 145.Replacement of bankruptcy order 146.Resignation by bankruptcy trustee 147.Vacancy in office of bankruptcy trustee 148.Release of bankruptcy trustee

149.Functions of bankruptcy trustee 150.Duties of bankrupt towards bankruptcy trustee 151.Rights of bankruptcy trustee 152.General powers of bankruptcy trustee 153.Approval of creditors for certain acts

154.Vesting of estate of bankrupt in bankruptcy trustee 155.Estate of bankrupt 156.Delivery of property and documents to bankruptcy trustee 157.Acquisition of control by bankruptcy trustee 158.Restrictions on disposition of property 159.After-acquired property of bankrupt 160.Onerous property of bankrupt 161.Notice to disclaim onerous property 162.Disclaimer of leaseholds 163.Challenge against disclaimed property 164.Undervalued transactions 165.Preference transactions 166.Effect of order 167.Extortionate credit transactions 168.Obligation under contracts 169.Continuance of proceedings on death of bankrupt 170.Administration of estate of deceased bankrupt 171.Proof of debt 172.Proof of debt by secured creditors 173.Mutual credit and set-off 174.Distribution of interim dividend 175.Distribution of property 176.Final dividend 177.Claims of creditors 178.Priority of payment of debts

VI — ADJUDICATING AUTHORITY FOR INDIVIDUALS AND PARTNERSHIP FIRMS

179.Adjudicating authority for individuals and partnership firms 180.Civil court not to have jurisdiction 181.Appeal to Debt Recovery Appellate Tribunal 182.Appeal to Supreme Court 183.Expeditious disposal of applications

VII

184.Punishment for false information, etc., by creditor in insolvency resolution process 185.Punishment for contravention of provisions 186.Punishment for false information, concealment, etc., by bankrupt 187.Punishment for certain actions

188.Establishment and incorporation of Board 189.Constitution of Board 190.Removal of member from office 191.Powers of Chairperson 192.Meetings of Board 193.Member not to participate in meetings in certain cases 194.Vacancies, etc., not to invalidate proceedings of Board, Officers and employees of Board 195.Power to designate financial sector regulator

II — POWERS AND FUNCTIONS OF THE BOARD

196.Powers and functions of Board 197.Constitution of advisory committee, executive committee or other committee 198.Condonation of delay

III — INSOLVENCY PROFESSIONAL AGENCIES

199.No person to function as insolvency professional agency without valid certificate of registration 200.Principles governing registration of insolvency professional agency 201.Registration of insolvency professional agency 202.Appeal to National Company Law Appellate Tribunal 203.Governing Board of insolvency professional agency 204.Functions of insolvency professional agencies 205.Insolvency professional agencies to make bye-laws

IV — INSOLVENCY PROFESSIONALS

206.Enrolled and registered persons to act as insolvency professionals 207.Registration of insolvency professionals 208.Functions and obligations of insolvency professionals

V — INFORMATION UTILITIES

209.No person to function as information utility without certificate of registration 210.Registration of information utility 211.Appeal to National Company Law Appellate Tribunal 212.Governing Board of information utility 213.Core services, etc., of information utilities 214.Obligation of information utility 215.Procedure for submission, etc., of financial information 216.Rights and obligations of persons submitting financial information

VI — INSPECTION AND INVESTIGATION

217.Complaints against insolvency professional agency or its member or information utility 218.Investigation of insolvency professional agency or its member or information utility 219.Show cause notice to insolvency professional agency or its member or information utility 220.Appointment of disciplinary committee

VII

221.Grants by Central Government 222.Board’s Fund 223.Accounts and audit

224.Insolvency and Bankruptcy Fund 225.Power of Central Government to issue directions 226.Power of Central Government to supersede Board 227.Power of Central Government to notify financial service providers, etc 228.Budget 229.Annual report 230.Delegation 231.Bar of jurisdiction 232.Members, officers and employees of Board to the public servants 233.Protection of action taken in good faith 234.Agreements with foreign countries 235.Letter of request to a country outside India in certain cases 235A.Punishment where no specific penalty or punishment is provided 236.Trial of offences by Special Court 237.Appeal and revision 238.Provisions of this Code to override other laws 238A.Limitation 239.Power to make rules 240.Power to make regulations 240A.Application of this Code to micro, small and medium enterprises 241.Rules and regulations to be laid before Parliament 242.Power to remove difficulties 243.Repeal of certain enactments and savings 244.Transitional provisions 245.Amendments of Act 9 of 1932 246.Amendments of Act 1 of 1944 247.Amendments of Act 43 of 1961 248.Amendments of Act 52 of 1962 249.Amendments of Act 51 of 1993 250.Amendments of Act 32 of 1994 251.Amendments of Act 54 of 2002 252.Amendments of Act 1 of 2004 253.Amendments of Act 51 of 2007 254.Amendments of Act 6 of 2009 255.Amendments of Act 18 of 2013

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