Corporate, Banking and Tax
The Insolvency and Bankruptcy Code, 2016
Act 31 of 2016 · 285 sections
The Insolvency and Bankruptcy Code (Amendment) Act, 2026 (6 of 2026) also inserts a Chapter IVA on creditor-initiated insolvency resolution (sections 58A to 58K), a Chapter VA on group insolvency (section 59A) and sections 240B and 240C, with related changes to sections 11, 65, 208 and 224. The India Code file shown here does not yet include those provisions; we could not confirm from an official source whether they have been brought into force. Read them in the Amendment Act itself.
Practise questions on Insolvency and Bankruptcy Code
Title, date and preamble
[28th May, 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:—
Contents
PART I PRELIMINARY
PART II INSOLVENCY RESOLUTION AND LIQUIDATION FOR CORPORATE PERSONS
CHAPTER I PRELIMINARY
CHAPTER II CORPORATE INSOLVENCY RESOLUTION PROCESS
- 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
- 11A.Disposal of applications under section 54C and under section 7 or section 9 or section 10
- 12.Time-limit for completion of insolvency resolution process
- 12A.Withdrawal of application admitted under section 7, 9 or 10
- 13.Declaration of moratorium and public announcement
- 14.Moratorium
- 15.Public announcement of corporate insolvency resolution process
- 16.Appointment and tenure of interim resolution professional
- 17.Management of affairs of corporate debtor by interim resolution professional
- 18.Duties of interim resolution professional
- 19.[Persons] to extend cooperation to interim resolution professional
- 20.Management of operations of corporate debtor as going concern
- 21.Committee of creditors
- 22.Appointment of resolution professional
- 23.Resolution professional to conduct corporate insolvency resolution process
- 24.Meeting of committee of creditors
- 25.Duties of resolution professional
- 25A.Rights and duties of authorised representative of financial creditors
- 26.Application in respect of certain transactions or trading not to affect processes
- 27.Replacement of resolution professional by committee of creditors
- 28.Approval of committee of creditors for certain actions
- 28A.Transfer of assets of guarantor of corporate debtor during process
- 29.Preparation of information memorandum
- 29A.Person not eligible to be resolution applicant
- 30.Submission of resolution plan
- 31.Approval of resolution plan
- 32.Appeal
- 32A.Liability for prior offences, etc
CHAPTER III LIQUIDATION PROCESS
- 33.Initiation of liquidation
- 34.Appointment of liquidator and fee to be paid
- 34A.Replacement of liquidator by committee of creditors
- 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 [undervalued] transactions
- 47.Application by creditors, member or partner in case of certain transactions or trading
- 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.Secured creditor in liquidation proceedings
- 53.Distribution of assets
- 54.Dissolution of corporate debtor
CHAPTER III-A PRE-PACKAGED INSOLVENCY RESOLUTION PROCESS
- 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 pre-packaged insolvency resolution process
- 54F.Duties and powers of resolution professional during pre-packaged insolvency resolution process
- 54G.List of claims and preliminary information memorandum
- 54H.Management of affairs of corporate debtor
- 54I.Committee of creditors
- 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 pre-packaged insolvency resolution process
- 54O.Initiation of corporate insolvency resolution process
- 54P.Application of provisions of Chapters II, III, VI and VII to this Chapter
CHAPTER V VOLUNTARY LIQUIDATION OF CORPORATE PERSONS
CHAPTER 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
- 64A.Penalty for initiating frivolous or vexatious proceedings under Part II
- 65.Fraudulent or malicious initiation of proceedings
- 66.Fraudulent or wrongful trading
- 67.Proceedings under section 66
- 67A.Fraudulent management of corporate debtor during pre-packaged insolvency resolution process
- 67B.Contravention of moratorium or resolution plan
- 67C.Contravention for non-disclosure of dispute or payment of debt by operational creditor
CHAPTER 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 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
PART III INSOLVENCY RESOLUTION AND BANKRUPTCY FOR INDIVIDUALS AND PARTNERSHIP FIRMS
CHAPTER I PRELIMINARY
CHAPTER 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
CHAPTER 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
CHAPTER 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 trustee
- 145.Replacement of bankruptcy trustee
- 146.Resignation by bankruptcy trustee
- 147.Vacancy in office of bankruptcy trustee
- 148.Release of bankruptcy trustee
CHAPTER V ADMINISTRATION AND DISTRIBUTION OF THE ESTATE OF THE BANKRUPT
- 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
- 164A.Transactions defrauding creditors
- 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
CHAPTER VI ADJUDICATING AUTHORITY FOR INDIVIDUALS AND PARTNERSHIP FIRMS
CHAPTER VII OFFENCES AND PENALTIES
PART IV REGULATION OF INSOLVENCY PROFESSIONALS, AGENCIES AND INFORMATION UTILITIES
CHAPTER I THE INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
- 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
CHAPTER II POWERS AND FUNCTIONS OF THE BOARD
CHAPTER 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
CHAPTER IV INSOLVENCY PROFESSIONALS
CHAPTER 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.Submission and authentication of financial information to information utilities
- 216.Rights and obligations of persons submitting financial information
CHAPTER VI INSPECTION AND INVESTIGATION
CHAPTER VII FINANCE, ACCOUNTS AND AUDIT
PART V MISCELLENEOUS
- 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.Power of Adjudicating Authority to impose penalties
- 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
Schedules and appendices
Schedules are not yet reproduced here. Read them in the official file; each link opens the page where the Schedule begins.