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Insolvency and Bankruptcy Code
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.
| Act Id | 201631 |
| Act Number | 31 |
| Enactment Date | 2016-05-28 |
| Act Year | 2016 |
| Ministry | Ministry of Corporate Affairs |
| Enforcement Date |
- PRELIMINARY
- 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
- 11 Persons not entitled to make application
- 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 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
- 25A Rights and duties of authorised representative of financial creditors
- 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
- 32A Liability for prior offences, etc
- CHAPTER 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 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
- CHAPTER IV FAST TRACK CORPORATE INSOLVENCY RESOLUTION PROCESS
- 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
- 65 Fraudulent or malicious initiation of proceedings
- 66 Fraudulent trading or wrongful trading
- 67 Proceedings under section 66
- 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
- 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 FIRMS
- 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
- 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
- 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
- CHAPTER VI ADJUDICATING AUTHORITY FOR INDIVIDUALS AND PARTNERSHIP FIRMS
- CHAPTER VII OFFENCES AND PENALTIES
- 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 Obligations of information utility
- 215 Procedure for submission, etc., of financial information
- 216 Rights and obligations of persons submitting financial information
- CHAPTER 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
- CHAPTER VII FINANCE, ACCOUNTS AND AUDIT
- MISCELLANEOUS
- 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
