Insolvency and Bankruptcy Code, 2016

Part: I
PRELIMINARY
Section 1	:	Short title, extent and commencement.
Section 2	:	Application
Section 3	:	Definition
Chapter: I (of Part II)
PRELIMINARY
Section 4	:	Application of this Part.
Section 5	:	Definition.
Chapter: II (of Part 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 10A	:	Suspension of initiation of corporate insolvency resolution process
Section 11	:	Persons not entitled to make application.
Section 11A	:	Disposal of applications under section 54C and under section 7 or section 9 or section 10
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 cooperation 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	:	Persons 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 (of Part II)
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	:	Order 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: III-A (of Part II)
PRE-PACKAGED INSOLVENCY RESOLUTION PROCESS
Section 54A	:	Corporate debtors eligible for pre-packaged insolvency resolution process
Section 54B	:	Duties of resolution professional before initiation of pre-packaged insolvency resolution process
Section 54C	:	Application to initiate prepackaged insolvency resolution process
Section 54D	:	Time-limit for completion of pre-packaged insolvency resolution process
Section 54E	:	Declaration of moratorium and public announcement during prepackaged insolvency resolution process
Section 54F	:	Duties and powers of resolution professional during prepackaged insolvency resolution process
Section 54G	:	List of claims and preliminary information memorandum
Section 54H	:	Management of affairs of corporate debtor
Section 54I	:	Committee of creditors
Section 54J	:	Vesting management of corporate debtor with resolution professional
Section 54K	:	Consideration and approval of resolution plan
Section 54L	:	Approval of resolution plan
Section 54M	:	Appeal against order under section 54L
Section 54N	:	Termination of pre-packaged insolvency resolution process
Section 54O	:	Initiation of corporate insolvency resolution process
Section 54P	:	Application of provisions of Chapters II, III, VI, and VII to this Chapter
Chapter: IV (of Part II)
FAST TRACK CORPORATE INSOLVENCY RESOLUTION PROCESS
Section 55	:	Fast track corporation insolvency resolution process.
Section 56	:	Time period for completion of fast track corporate insolvency resolution process.
Section 57	:	Manner of initiating fact track corporate insolvency resolution process.
Section 58	:	Applicability of Chapter II to this Chapter.
Chapter: V (of Part II)
VOLUNTARY LIQUIDATION OF CORPORATE PERSONS
Section 59	:	Voluntary Liquidation of corporate persons.
Chapter: VI (of Part II)
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.
Section 67A	:	Fraudulent management of corporate debtor during prepackaged insolvency resolution process
Chapter: VII (of Part II)
OFFENCES AND PENALTIES
Section 68	:	Punishment for concealment or property.
Section 69	:	Punishment for transactions defrauding creditors.
Section 70	:	Punishment for misconduct in courses 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 payment of debt by operational creditor.
Section 77	:	Punishment for providing false information in application made by corporate debtor.
Section 77A	:	Punishment for offences related to pre-packaged insolvency resolution process
Chapter: I (of Part III)
PRELIMINARY
Section 78	:	Application.
Section 79	:	Definitions.
Chapter: II (of Part III)
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 (of Part 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 form 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 (of Part III)
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 bankrupt.
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 (of Part III)
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 (of Part III)
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: VII (of Part III)
OFFENCES AND PENALTIES
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: I (of Part IV)
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 (of Part IV)
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 (of Part IV)
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 (of Part 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 (of Part IV)
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 (of Part IV)
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 (of Part IV)
FINANCE, ACCOUNTS AND AUDIT
Section 221	:	Grants by Central Government.
Section 222	:	Board's Fund.
Section 223	:	Accounts and audit.
Part: V
MISCELLENEOUS
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.
Schedules
SCH 01	:	AMENDMENT TO THE INDIAN PARTNERSHIP ACT, 1932 (9 of 1932)
SCH 02	:	AMENDMENT TO THE CENTRAL EXCISE ACT, 1944 (1 of 1944)
SCH 03	:	AMENDMENT TO THE INCOME-TAX ACT, 1961 (43 of 1961)
SCH 04	:	AMENDMENT TO THE CUSTOMS ACT, 1962 (52 of 1962)
SCH 05	:	AMENDMENTS TO RECOVERY OF DEBTS DUE TO BANKS AND FINANCIAL INSTITUTIONS ACT, 1993 (51 of 1993)
SCH 06	:	AMENDMENT TO THE FINANCE ACT, 1994 (32 OF 1994)
SCH 07	:	AMENDMENT TO THE SECURITIZATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT, 2002 (54 OF 2002)
SCH 08	:	AMENDMENT TO THE SICK INDUSTRIAL COMPANIES (SPECIAL PROVISIONS) REPEAL ACT, 2003 (1 OF 2004)
SCH 09	:	AMENDMENT TO PAYMENT AND SETTLEMENT SYSTEMS ACT, 2007 (51 OF 2007)
SCH 10	:	AMENDMENT TO THE LIMITED LIABILITY PARTNERSHIP ACT, 2008 (6 OF 2009)
SCH 11	:	AMENDMENTS TO THE COMPANIES ACT, 2013 (18 OF 2013)
SCH 12	:	ACTS FOR THE PURPOSES OF CLAUSE (d) OF SECTION 29A