Insolvency and Bankruptcy Code, 2016

Bare Act · 2016

Act number: 31 of 2016
Enacted: 28 May 2016
Contents: 289 sections · 22 chapters

The first 5 sections are free to read. Sign in free to read the rest.

Contents

Part I — Preliminary

Chapter I — Preliminary

Chapter II — Corporate Insolvency Resolution Process

Chapter III — Liquidation Process

Section 33 – Initiation of liquidation (preview)
Section 34 – Appointment of liquidator and fee to be paid (preview)
Section 34A – Replacement of liquidator by committee of creditors (preview)
Section 35 – Powers and duties of liquidator (preview)
Section 36 – Liquidation estate (preview)
Section 37 – Powers of liquidator to access information (preview)
Section 38 – Consolidation of claims (preview)
Section 39 – Verification of claims (preview)
Section 40 – Admission or rejection of claims (preview)
Section 41 – Determination of valuation of claims (preview)
Section 42 – Appeal against the decision of liquidator (preview)
Section 43 – Preferential transactions and relevant time (preview)
Section 44 – Orders in case of preferential transactions (preview)
Section 45 – Avoidance of undervalued transactions (preview)
Section 46 – Relevant period for avoidable transactions (preview)
Section 47 – Application by creditor in cases of undervalued transactions (preview)
Section 48 – Order in cases of undervalued transactions (preview)
Section 49 – Transactions defrauding creditors (preview)
Section 50 – Extortionate credit transactions (preview)
Section 51 – Orders of Adjudicating Authority in respect of extortionate credit transactions (preview)
Section 52 – Secured creditor in liquidation proceedings (preview)
Section 53 – Distribution of assets (preview)
Section 54 – Dissolution of corporate debtor (preview)

Sections

Chapter III — -A

Chapter V — Voluntary Liquidation Of Corporate Persons

Section 59 – Voluntary liquidation of corporate persons (preview)

Chapter VI — Adjudicating Authority For Corporate Persons

Chapter VII — Offences And Penalties

Chapter II — Fresh Start Process

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

Chapter III — Insolvency Resolution Process

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

Chapter IV — Bankruptcy Order For Individuals And Partnership Firms

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

Chapter V — Administration And Distribution Of The Estate Of The Bankrupt

Section 149 – Functions of bankruptcy trustee (preview)
Section 150 – Duties of bankrupt towards bankruptcy trustee (preview)
Section 151 – Rights of bankruptcy trustee (preview)
Section 152 – General powers of bankruptcy trustee (preview)
Section 153 – Approval of creditors for certain acts (preview)
Section 154 – Vesting of estate of bankrupt in bankruptcy trustee (preview)
Section 155 – Estate of bankrupt (preview)
Section 156 – Delivery of property and documents to bankruptcy trustee (preview)
Section 157 – Acquisition of control by bankruptcy trustee (preview)
Section 158 – Restrictions on disposition of property (preview)
Section 159 – After-acquired property of bankrupt (preview)
Section 160 – Onerous property of bankrupt (preview)
Section 161 – Notice to disclaim onerous property (preview)
Section 162 – Disclaimer of leaseholds (preview)
Section 163 – Challenge against disclaimed property (preview)
Section 164 – Undervalued transactions (preview)
Section 164A – Transactions defrauding creditors (preview)
Section 165 – Preference transactions (preview)
Section 166 – Effect of order (preview)
Section 167 – Extortionate credit transactions (preview)
Section 168 – Obligations under contracts (preview)
Section 169 – Continuance of proceedings on death of bankrupt (preview)
Section 170 – Administration of estate of deceased bankrupt (preview)
Section 171 – Proof of debt (preview)
Section 172 – Proof of debt by secured creditors (preview)
Section 173 – Mutual credit and set-off (preview)
Section 174 – Distribution of interim dividend (preview)
Section 175 – Distribution of property (preview)
Section 176 – Final dividend (preview)
Section 177 – Claims of creditors (preview)
Section 178 – Priority of payment of debts (preview)

Chapter VI — Adjudicating Authority For Individuals And Partnership Firms

Section 179 – Adjudicating authority for individuals and partnership firms (preview)
Section 180 – Civil court not to have jurisdiction (preview)
Section 181 – Appeal to Debt Recovery Appellate Tribunal (preview)
Section 182 – Appeal to Supreme Court (preview)
Section 183 – Expeditious disposal of applications (preview)
Section 183A – Penalty for initiating frivolous or vexatious proceedings under Part III (preview)

Chapter I — The Insolvency And Bankruptcy Board Of India

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

Chapter II — Powers And Functions Of The Board

Section 196 – Powers and functions of Board (preview)
Section 197 – Constitution of advisory committee, executive committee or other committee (preview)
Section 198 – Condonation of delay (preview)

Chapter III — Insolvency Professional Agencies

Chapter IV — Insolvency Professionals

Chapter V — Information Utilities

Chapter VI — Inspection And Investigation

Section 217 – Complaints against service providers (preview)
Section 218 – Investigation of service providers (preview)
Section 219 – Show cause notice to service provider (preview)
Section 220 – Appointment of disciplinary committee (preview)

Chapter VII — Finance, Accounts And Audit

Section 221 – Grants by Central Government (preview)
Section 222 – Board’s Fund (preview)
Section 223 – Accounts and audit (preview)

Part V — Miscellaneous

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