Section List

31/2016 - The Insolvency and Bankruptcy Code, 2016. ▶

Act Number: 31

Act Name: The Insolvency and Bankruptcy Code, 2016.

Year: 2016

Enactment Date: 2016-05-28

Long Title: 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.

Ministry: Ministry of Corporate Affairs

Department:

Section Number	Title	Actions
1	Short title, extent and commencement.
2	Application.
3	Definitions.
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.
11	Persons not entitled to make application.
12	Time-limit for completion of insolvency resolution process.
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	Personnel to extend co-operation 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.
26	Application for avoidance of transactions not to affect proceedings.
27	Replacement of resolution professional by committee of creditors.
28	Approval of committee of creditors for certain actions.
29	Preparation of information memorandum.
30	Submission of resolution plan.
31	Approval of resolution plan.
32	Appeal.
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	Orders of Adjudicating Authority in respect of extortionate credit transactions.
52	Secured creditor in liquidation proceedings.
53	Distribution of assets.
54	Dissolution of corporate debtor.
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.
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.
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.
78	Application.
79	Definitions.
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.
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.
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 bankruptcy.
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.
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	Obligations 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.
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.
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.
196	Powers and functions of Board.
197	Constitution of advisory committee, executive committee or other committee.
198	Condonation of delay.
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.
206	Enrolled and registered persons to act as insolvency professionals.
207	Registration of insolvency professionals.
208	Functions and obligations of insolvency professionals.
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	Obligations of information utility.
215	Procedure for submission, etc., of financial information.
216	Rights and obligations of persons submitting financial information.
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.
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.
236	Trial of offences by Special Court.
237	Appeal and revision.
238	Provisions of this Code to override other laws.
239	Power to make rules.
240	Power to make regulations.
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.
12A	Withdrawal of application admitted under section 7, 9 or 10.
25A	Rights and duties of authorised representative of financial creditors.
235A	Punishment where no specific penalty or punishment is provided.
240A	Application of this Code to micro, small and medium enterprises.
238A	Limitation.
29A	Person not eligible to be resolution applicant.
32A	Liability for prior offences, etc.
10A	Suspension of initiation of corporate insolvency resolution process.
11A	Disposal of applications under section 54C and under section 7 or section 9 or section 10.
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.
54-I	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.
54-O	Initiation of corporate insolvency resolution process.
54P	Application of provisions of Chapters II, III, VI and VII to this Chapter.
67A	Fraudulent management of corporate debtor during pre-packaged insolvency resolution process
77A	Punishment for offences related to pre-packaged insolvency resolution process.