The 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.2016
List of Chapters & Sections
PRELIMINARY
CHAPTER I PRELIMINARY
CHAPTER II CORPORATE INSOLVENCY RESOLUTION PROCESS
CHAPTER III LIQUIDATION PROCESS
CHAPTER IV FAST TRACK CORPORATE INSOLVENCY RESOLUTION PROCESS
CHAPTER V VOLUNTARY LIQUIDATION OF CORPORATE PERSONS
CHAPTER VI ADJUDICATING AUTHORITY FOR CORPORATE PERSONS
CHAPTER VII OFFENCES AND PENALTIES
CHAPTER I PRELIMINARY
CHAPTER II FRESH START PROCESS
CHAPTER III INSOLVENCY RESOLUTION PROCESS
CHAPTER IV BANKRUPTCY ORDER FOR INDIVIDUALS AND PARTNERSHIP FIRMS
CHAPTER V ADMINISTRATION AND DISTRIBUTION OF THE ESTATE OF THE BANKRUPT
CHAPTER VI ADJUDICATING AUTHORITY FOR INDIVIDUALS AND PARTNERSHIP FIRMS
CHAPTER VII OFFENCES AND PENALTIES
CHAPTER I THE INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
CHAPTER II POWERS AND FUNCTIONS OF THE BOARD
CHAPTER III INSOLVENCY PROFESSIONAL AGENCIES
CHAPTER IV INSOLVENCY PROFESSIONALS
CHAPTER V INFORMATION UTILITIES
CHAPTER VI INSPECTION AND INVESTIGATION
CHAPTER VII FINANCE, ACCOUNTS AND AUDIT
MISCELLANEOUS
PRELIMINARY
CHAPTER I PRELIMINARY
CHAPTER II CORPORATE INSOLVENCY RESOLUTION PROCESS
6Persons who may initiate corporate insolvency resolution process7Initiation of corporate insolvency resolution process by financial creditor8Insolvency resolution by operational creditor9Application for initiation of corporate insolvency resolution process by operational creditor10Initiation of corporate insolvency resolution process by corporate applicant11Persons not entitled to make application12Time-limit for completion of insolvency resolution process12AWithdrawal of application admitted under section 7, 9 or 1013Declaration of moratorium and public announcement14Moratorium15Public announcement of corporate insolvency resolution process16Appointment and tenure of interim resolution professional17Management of affairs of corporate debtor by interim resolution professional18Duties of interim resolution professional19Personnel to extend co-operation to interim resolution professional20Management of operations of corporate debtor as going concern21Committee of creditors22Appointment of resolution professional23Resolution professional to conduct corporate insolvency resolution process24Meeting of committee of creditors25Duties of resolution professional25ARights and duties of authorised representative of financial creditors26Application for avoidance of transactions not to affect proceedings27Replacement of resolution professional by committee of creditors28Approval of committee of creditors for certain actions29Preparation of information memorandum30Submission of resolution plan31Approval of resolution plan32Appeal32ALiability for prior offences, etcCHAPTER III LIQUIDATION PROCESS
33Initiation of liquidation34Appointment of liquidator and fee to be paid35Powers and duties of liquidator36Liquidation estate37Powers of liquidator to access information38Consolidation of claims39Verification of claims40Admission or rejection of claims41Determination of valuation of claims42Appeal against the decision of liquidator43Preferential transactions and relevant time44Orders in case of preferential transactions45Avoidance of undervalued transactions46Relevant period for avoidable transactions47Application by creditor in cases of undervalued transactions48Order in cases of undervalued transactions49Transactions defrauding creditors50Extortionate credit transactions51Orders of Adjudicating Authority in respect of extortionate credit transactions52Secured creditor in liquidation proceedings53Distribution of assets54Dissolution of corporate debtorCHAPTER IV FAST TRACK CORPORATE INSOLVENCY RESOLUTION PROCESS
CHAPTER V VOLUNTARY LIQUIDATION OF CORPORATE PERSONS
CHAPTER VI ADJUDICATING AUTHORITY FOR CORPORATE PERSONS
60Adjudicating Authority for corporate persons61Appeals and Appellate Authority62Appeal to Supreme Court63Civil court not to have jurisdiction64Expeditious disposal of applications65Fraudulent or malicious initiation of proceedings66Fraudulent trading or wrongful trading67Proceedings under section 66CHAPTER VII OFFENCES AND PENALTIES
68Punishment for concealment of property69Punishment for transactions defrauding creditors70Punishment for misconduct in course of corporate insolvency resolution process71Punishment for falsification of books of corporate debtor72Punishment for wilful and material omissions from statements relating to affairs of corporate debtor73Punishment for false representations to creditors74Punishment for contravention of moratorium or the resolution plan75Punishment for false information furnished in application76Punishment for non-disclosure of dispute or payment of debt by operational creditor77Punishment for providing false information in application made by corporate debtorCHAPTER I PRELIMINARY
CHAPTER II FRESH START PROCESS
80Eligibility for making an application81Application for fresh start order82Appointment of resolution professional83Examination of application by resolution professional84Admission or rejection of application by Adjudicating Authority85Effect of admission of application86Objections by creditor and their examination by resolution professional87Application against decision of resolution professional88General duties of debtor89Replacement of resolution professional90Directions for compliances of restrictions, etc91Revocation of order admitting application92Discharge order93Standard of conductCHAPTER III INSOLVENCY RESOLUTION PROCESS
94Application by debtor to initiate insolvency resolution process95Application by creditor to initiate insolvency resolution process96Interim moratorium97Appointment of resolution professional98Replacement of resolution professional99Submission of report by resolution professional100Admission or rejection of application101Moratorium102Public notice and claims from creditors103Registering of claims by creditors104Preparation of list of creditors105Repayment plan106Report of resolution professional on repayment plan107Summoning of meeting of creditors108Conduct of meeting of creditors109Voting rights in meeting of creditors110Rights of secured creditors in relation to repayment plan111Approval of repayment plan by creditors112Report of meeting of creditors on repayment plan113Notice of decisions taken at meeting of creditors114Order of Adjudicating Authority on repayment plan115Effect of order of Adjudicating Authority on repayment plan116Implementation and supervision of repayment plan117Completion of repayment plan118Repayment plan coming to end prematurely119Discharge order120Standard of conductCHAPTER IV BANKRUPTCY ORDER FOR INDIVIDUALS AND PARTNERSHIP FIRMS
121Application for bankruptcy122Application by debtor123Application by creditor124Effect of application125Appointment of insolvency professional as bankruptcy trustee126Bankruptcy order127Validity of bankruptcy order128Effect of bankruptcy order129Statement of financial position130Public notice inviting claims from creditors131Registration of claims132Preparation of list of creditors133Summoning of meeting of creditors134Conduct of meeting of creditors135Voting rights of creditors136Administration and distribution of estate of bankruptcy137Completion of administration138Discharge order139Effect of discharge140Disqualification of bankrupt141Restrictions on bankrupt142Modification or recall of bankruptcy order143Standard of conduct144Fees of bankruptcy trustee145Replacement of bankruptcy trustee146Resignation by bankruptcy trustee147Vacancy in office of bankruptcy trustee148Release of bankruptcy trusteeCHAPTER V ADMINISTRATION AND DISTRIBUTION OF THE ESTATE OF THE BANKRUPT
149Functions of bankruptcy trustee150Duties of bankrupt towards bankruptcy trustee151Rights of bankruptcy trustee152General powers of bankruptcy trustee153Approval of creditors for certain acts154Vesting of estate of bankrupt in bankruptcy trustee155Estate of bankrupt156Delivery of property and documents to bankruptcy trustee157Acquisition of control by bankruptcy trustee158Restrictions on disposition of property159After-acquired property of bankrupt160Onerous property of bankrupt161Notice to disclaim onerous property162Disclaimer of leaseholds163Challenge against disclaimed property164Undervalued transactions165Preference transactions166Effect of order167Extortionate credit transactions168Obligations under contracts169Continuance of proceedings on death of bankrupt170Administration of estate of deceased bankrupt171Proof of debt172Proof of debt by secured creditors173Mutual credit and set-off174Distribution of interim dividend175Distribution of property176Final dividend177Claims of creditors178Priority of payment of debtsCHAPTER VI ADJUDICATING AUTHORITY FOR INDIVIDUALS AND PARTNERSHIP FIRMS
CHAPTER VII OFFENCES AND PENALTIES
CHAPTER I THE INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
188Establishment and incorporation of Board189Constitution of Board190Removal of member from office191Powers of Chairperson192Meetings of Board193Member not to participate in meetings in certain cases194Vacancies, etc., not to invalidate proceedings of Board, Officers and employees of Board195Power to designate financial sector regulatorCHAPTER II POWERS AND FUNCTIONS OF THE BOARD
CHAPTER III INSOLVENCY PROFESSIONAL AGENCIES
199No person to function as insolvency professional agency without valid certificate of registration200Principles governing registration of insolvency professional agency201Registration of insolvency professional agency202Appeal to National Company Law Appellate Tribunal203Governing Board of insolvency professional agency204Functions of insolvency professional agencies205Insolvency professional agencies to make bye-lawsCHAPTER IV INSOLVENCY PROFESSIONALS
CHAPTER V INFORMATION UTILITIES
209No person to function as information utility without certificate of registration210Registration of information utility211Appeal to National Company Law Appellate Tribunal212Governing Board of information utility213Core services, etc., of information utilities214Obligations of information utility215Procedure for submission, etc., of financial information216Rights and obligations of persons submitting financial informationCHAPTER VI INSPECTION AND INVESTIGATION
217Complaints against insolvency professional agency or its member or information utility218Investigation of insolvency professional agency or its member or information utility219Show cause notice to insolvency professional agency or its member or information utility220Appointment of disciplinary committeeCHAPTER VII FINANCE, ACCOUNTS AND AUDIT
MISCELLANEOUS
224Insolvency and Bankruptcy Fund225Power of Central Government to issue directions226Power of Central Government to supersede Board227Power of Central Government to notify financial service providers, etc228Budget229Annual report230Delegation231Bar of jurisdiction232Members, officers and employees of Board to the public servants233Protection of action taken in good faith234Agreements with foreign countries235Letter of request to a country outside India in certain cases235APunishment where no specific penalty or punishment is provided236Trial of offences by Special Court237Appeal and revision238Provisions of this Code to override other laws238ALimitation239Power to make rules240Power to make regulations240AApplication of this Code to micro, small and medium enterprises241Rules and regulations to be laid before Parliament242Power to remove difficulties243Repeal of certain enactments and savings244Transitional provisions245Amendments of Act 9 of 1932246Amendments of Act 1 of 1944247Amendments of Act 43 of 1961248Amendments of Act 52 of 1962249Amendments of Act 51 of 1993250Amendments of Act 32 of 1994251Amendments of Act 54 of 2002252Amendments of Act 1 of 2004253Amendments of Act 51 of 2007254Amendments of Act 6 of 2009255Amendments of Act 18 of 2013