Insolvency and Bankruptcy Code, 2016 (IBC) – Bare Act

September 13, 2022November 7, 2023by IBC Laws Editor

The Code

Bare Act
Insolvency and Bankruptcy Code, 2016 (IBC)

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Part-I Preliminary

Section-1 Short title, extent and commencement

Section-2 Application

Section-3 Definitions

Part-II Insolvency Resolution and Liquidation for Corporate Persons

Chapter-I Preliminary

Section-4 Application of this Part-II (Insolvency Resolution and Liquidation for Corporate Persons)

Section-5 Definitions under Part-II

Chapter-II Corporate Insolvency Resolution Process

Section-6 Persons who may initiate corporate insolvency resolution process

Section-7 Initiation of corporate insolvency resolution process (CIRP) by financial creditor

Section-8 Insolvency resolution by operational creditor

Section-9 Application for initiation of corporate insolvency resolution process (CIRP) by operational creditor

Section-10 Initiation of corporate insolvency resolution process by corporate applicant

Section-10A Suspension of initiation of corporate insolvency resolution process.

Section-11 Persons not entitled to make application

Section-11A Disposal of applications under section 54C and under section 7 or section 9 or section 10

Section-12 Time limit for completion of insolvency resolution process

Section-12A Withdrawal of application admitted under section 7, 9 or 10

Section-13 Declaration of moratorium and public announcement

Section-14 Moratorium

Section-15 Public announcement of corporate insolvency resolution process

Section-16 Appointment and tenure of interim resolution professional

Section-17 Management of affairs of corporate debtor by interim resolution professional

Section-18 Duties of interim resolution professional

Section-19 Personnel to extend cooperation to interim resolution professional

Section-20 Management of operations of corporate debtor as going concern

Section-21 Committee of creditors

Section-22 Appointment of resolution professional

Section-23 Resolution professional to conduct corporate insolvency resolution process

Section-24 Meeting of committee of creditors

Section-25 Duties of resolution professional

Section-25A Rights and duties of authorised representative of financial creditors

Section-26 Application for avoidance of transactions not to affect proceedings

Section-27 Replacement of resolution professional by committee of creditors

Section-28 Approval of committee of creditors for certain actions

Section-29 Preparation of information memorandum

Section-29A Persons not eligible to be resolution applicant

Section-30 Submission of resolution plan

Section-31 Approval of resolution plan

Section-32 Appeal

Section-32A Liability for prior offences, etc.

Chapter-III Liquidation Process

Section-33 Initiation of liquidation

Section-34 Appointment of liquidator and fee to be paid

Section-35 Powers and duties of liquidator

Section-36 Liquidation estate

Section-37 Powers of liquidator to access information

Section-38 Consolidation of claims

Section-39 Verification of claims

Section-40 Admission or rejection of claims

Section-41 Determination of valuation of claims

Section-42 Appeal against the decision of liquidator

Section-43 Preferential transactions and relevant time

Section-44 Orders in case of preferential transactions

Section-45 Avoidance of undervalued transactions

Section-46 Relevant period for avoidable transactions

Section-47 Application by creditor in cases of undervalued transactions

Section-48 Order in cases of undervalued transactions

Section-49 Transactions defrauding creditors

Section-50 Extortionate credit transactions

Section-51 Orders of Adjudicating Authority in respect of extorionate credit transactions

Section-52 Secured creditor in liquidation proceedings

Section-53 Distribution of assets

Section-54 Dissolution of corporate debtor

Chapter-III-A Pre-Packaged Insolvency Resolution Process

Section-54A Corporate debtors eligible for pre-packaged insolvency resolution process

Section-54B Duties of resolution professional before initiation of pre-packaged insolvency resolution process

Section-54C Application to initiate pre-packaged insolvency resolution process

Section-54D Time-limit for completion of pre-packaged insolvency resolution process

Section-54E Declaration of moratorium and public announcement during pre-packaged insolvency resolution process

Section-54F Duties and powers of resolution professional during pre-packaged insolvency resolution process

Section-54G List of claims and preliminary information memorandum

Section-54H Management of affairs of corporate debtor

Section-54-I Committee of creditors

Section-54J Vesting management of corporate debtor with resolution professional

Section-54K Consideration and approval of resolution plan

Section-54L Approval of resolution plan

Section-54M Appeal against order under section 54L

Section-54N Termination of pre-packaged insolvency resolution process

Section-54-O Initiation of corporate insolvency resolution process

Section-54P Application of provisions of Chapters II, III, VI, and VII to this Chapter

Chapter-IV Fast Track Corporate Insolvency Resolution Process

Section-55 Fast track corporation insolvency resolution process

Section-56 Time period for completion of fast track corporate insolvency resolution process

Section-57 Manner of initiating fast track corporate insolvency resolution process

Section-58 Applicability of Chapter II to this Chapter

Chapter-V Voluntary Liquidation of Corporate Persons

Section-59 Voluntary liquidation of corporate persons

Chapter-VI Adjudicating Authority for Corporate Persons

Section-60 Adjudicating Authority for corporate persons

Section-61 Appeals and Appellate Authority

Section-62 Appeal to Supreme Court

Section-63 Civil court not to have jurisdiction

Section-64 Expeditious disposal of applications

Section-65 Fraudulent or malicious initiation of proceedings

Section-66 Fraudulent trading or wrongful trading

Section-67 Proceedings under section 66

Section-67A Fraudulent management of corporate debtor during pre-packaged insolvency resolution process

Chapter-VII Offences and Penalties

Section-68 Punishment for concealment of property

Section-69 Punishment for transactions defrauding creditors

Section-70 Punishment for misconduct in course of corporate insolvency resolution process

Section-71 Punishment for falsification of books of corporate debtor

Section-72 Punishment for wilful and material omissions from statements relating to affairs of corporate debtor

Section-73 Punishment for false representations to creditors

Section-74 Punishment for contravention of moratorium or the resolution plan

Section-75 Punishment for false information furnished in application

Section-76 Punishment for non-disclosure of dispute or payment of debt by operational creditor

Section-77 Punishment for providing false information in application made by corporate debtor

Section-77A Punishment for offences related to pre-packaged insolvency resolution process

Part-III Insolvency Resolution and Bankruptcy for Individuals and Partnership Firms

Chapter-I Preliminary

Section-78 Application of Part-III

Section-79 Definitions of Part-III

Chapter-II Fresh Start Process

Section-80 Eligibility for making an application

Section-81 Application for fresh start order

Section-82 Appointment of resolution professional

Section-83 Examination of application by resolution professional

Section-84 Admission or rejection of application by Adjudicating Authority

Section-85 Effect of admission of application

Section-86 Objections by creditor and their examination by resolution professional

Section-87 Application against decision of resolution professional

Section-88 General duties of debtor

Section-89 Replacement of resolution professional

Section-90 Directions for compliances of restrictions, etc.

Section-91 Revocation of order admitting application

Section-92 Discharge order

Section-93 Standard of conduct

Chapter-III Insolvency Resolution Process

Section-94 Application by debtor to initiate insolvency resolution process

Section-95 Application by creditor to initiate insolvency resolution process

Section-96 Interim-moratorium

Section-97 Appointment of resolution professional

Section-98 Replacement of resolution professional

Section-99 Submission of report by resolution professional

Section-100 Admission or rejection of application

Section-101 Moratorium

Section-102 Public notice and claims from creditors

Section-103 Registering of claims by creditors

Section-104 Preparation of list of creditors

Section-105 Repayment plan

Section-106 Report of resolution professional on repayment plan

Section-107 Summoning of meeting of creditors

Section-108 Conduct of meeting of creditors

Section-109 Voting rights in meeting of creditors

Section-110 Rights of secured creditors in relation to repayment plan

Section-111 Approval of repayment plan by creditors

Section-112 Report of meeting of creditors on repayment plan

Section-113 Notice of decisions taken at meeting of creditors

Section-114 Order of Adjudicating Authority on repayment plan

Section-115 Effect of order of Adjudicating Authority on repayment plan

Section-116 Implementation and supervision of repayment plan

Section-117 Completion of repayment plan

Section-118 Repayment plan coming to end prematurely

Section-119 Discharge order

Section-120 Standard of conduct

Chapter-IV Bankruptcy Order for Individuals and Partnership Firms

Section-121 Application for bankruptcy

Section-122 Application by debtor

Section-123 Application by creditor

Section-124 Effect of application

Section-125 Appointment of insolvency professional as bankruptcy trustee

Section-126 Bankruptcy order

Section-127 Validity of bankruptcy order

Section-128 Effect of bankruptcy order

Section-129 Statement of financial position

Section-130 Public notice inviting claims from creditors

Section-131 Registration of claims

Section-132 Preparation of list of creditors

Section-133 Summoning of meeting of creditors

Section-134 Conduct of meeting of creditors

Section-135 Voting rights of creditors

Section-136 Administration and distribution of estate of bankrupt

Section-137 Completion of administration

Section-138 Discharge order

Section-139 Effect of discharge

Section-140 Disqualification of bankrupt

Section-141 Rest r ictions on bankrupt

Section-142 Modification or recall of bankruptcy order

Section-143 Standard of conduct

Section-144 Fees of bankruptcy trustee

Section-145 Replacement of bankruptcy trustee

Section-146 Resignation by bankruptcy trustee

Section-147 Vacancy in office of bankruptcy trustee

Section-148 Release of bankruptcy trustee

Chapter-V Administration and Distribution of the Estate of the Bankrupt

Section-149 Functions of bankruptcy trustee

Section-150 Duties of bankrupt towards bankruptcy trustee

Section-151 Rights of bankruptcy trustee

Section-152 General powers of bankruptcy trustee

Section-153 Approval of creditors for certain acts

Section-154 Vesting of estate of bankrupt in bankruptcy trustee

Section-155 Estate of bankrupt

Section-156 Delivery of property and documents to bankruptcy trustee

Section-157 Acquisition of control by bankruptcy trustee

Section-158 Restrictions on disposition of property

Section-159 After-acquired property of bankrupt

Section-160 Onerous property of bankrupt

Section-161 Notice to disclaim onerous property

Section-162 Disclaimer of leaseholds

Section-163 Challenge against disclaimed property

Section-164 Undervalued transactions

Section-165 Preference transactions

Section-166 Effect of order

Section-167 Extortionate credit transactions

Section-168 Obligations under contracts

Section-169 Continuance of proceedings on death of bankrupt

Section-170 Administration of estate of deceased bankrupt

Section-171 Proof of debt

Section-172 Proof of debt by secured creditors

Section-173 Mutual credit and set-off

Section-174 Distribution of interim dividend

Section-175 Distribution of property

Section-176 Final dividend

Section-177 Claims of creditors

Section-178 Priority of payment of debts

Chapter-VI Adjudicating Authority for Individuals and Partnership Firms

Section-179 Adjudicating Authority for individuals and partnership firms

Section-180 Civil court not to have jurisdiction

Section-181 Appeal to Debt Recovery Appellate Tribunal

Section-182 Appeal to Supreme Court

Section-183 Expeditious disposal of applications

Chapter-VII Offences and Penalties

Section-184 Punishment for false information, etc., by creditor in insolvency resolution process

Section-185 Punishment for contravention of provisions

Section-186 Punishment for false information, concealment, etc., by bankrupt

Section-187 Punishment for certain actions

Part-IV Regulation of Insolvency Professionals, Agencies and Information Utilities

Chapter-I The Insolvency and Bankruptcy Board of India

Section-188 Establishment and incorporation of Board

Section-189 Constitution of Board

Section-190 Removal of member from office

Section-191 Powers of Chairperson

Section-192 Meetings of Board

Section-193 Member not to participate in meetings in certain cases

Section-194 Vacancies, etc., not to invalidate proceedings of Board, Officers and employees of Board

Section-195 Power to designate financial sector regulator

Chapter-II Powers and Functions of the Board

Section-196 Powers and functions of Board

Section-197 Constitution of advisory committee, executive committee or other committee

Section-198 Condonation of delay

Chapter-III Insolvency Professional Agencies

Section-199 No person to function as insolvency professional agency without valid certificate of registration

Section-200 Principles governing registration of insolvency professional agency

Section-201 Registration of insolvency professional agency

Section-202 Appeal to National Company Law Appellate Tribunal

Section-203 Governing Board of insolvency professional agency

Section-204 Functions of insolvency professional agencies

Section-205 Insolvency professional agencies to make bye-laws

Chapter-IV Insolvency Professionals

Section-206 Enrolled and registered persons to act as insolvency professionals

Section-207 Registration of insolvency professionals

Section-208 Functions and obligations of insolvency professionals

Chapter-V Information Utilities

Section-209 No person to function as information utility without certificate of registration

Section-210 Registration of information utility

Section-211 Appeal to National Company Law Appellate Tribunal

Section-212 Governing Board of information utility

Section-213 Core services, etc., of information utilities

Section-214 Obligations of information utility

Section-215 Procedure for submission, etc., of financial information

Section-216 Rights and obligations of persons submitting financial information

Chapter-VI Inspection and Investigation

Section-217 Complaints against insolvency professional agency or its member or information utility

Section-218 Investigation of insolvency professional agency or its member or information utility

Section-219 Show cause notice to insolvency professional agency or its member or information utility

Section-220 Appointment of disciplinary committee

Chapter-VII Finance, Accounts and Audit

Section-221 Grants by Central Government

Section-222 Board’s Fund

Section-223 Accounts and audit

Part-V Miscellaneous

Section-224 Insolvency and Bankruptcy Fund

Section-225 Power of Central Government to issue directions

Section-226 Power of Central Government to supersede Board

Section-227 Power of Central Government to notify financial service providers, etc.

Section-228 Budget

Section-229 Annual report

Section-230 Delegation

Section-231 Bar of jurisdiction

Section-232 Members, officers and employees of Board to the public servants

Section-233 Protection of action taken in good faith

Section-234 Agreements with foreign countries

Section-235 Letter of request to a country outside India in certain cases

Section-235A Punishment where no specific penalty or punishment is provided

Section-236 Trial of offences by Special Court

Section-237 Appeal and revision

Section-238 Provisions of this Code to override other laws

Section-238A Limitation

Section-239 Power to make rules

Section-240 Power to make regulations

Section-240A Application of this Code to micro, small and medium enterprises

Section-241 Rules and regulations to be laid before Parliament

Section-242 Power to remove difficulties

Section-243 Repeal of certain enactments and savings

Section-244 Transitional provisions

Section-245 Amendments of Act 9 of 1932

Section-246 Amendments of Act 1 of 1944

Section-247 Amendments of Act 43 of 1961

Section-248 Amendments of Act 52 of 1962

Section-249 Amendments of Act 51 of 1993

Section-250 Amendments of Act 32 of 1994

Section-251 Amendments of Act 54 of 2002

Section-252 Amendments of Act 1 of 2004

Section-253 Amendments of Act 51 of 2007

Section-254 Amendments of Act 6 of 2009

Section-255 Amendments of Act 18 of 2013

Schedules

The First Schedule

The Second Schedule

The Third Schedule

The Fourth Schedule

The Fifth Schedule

The Sixth Schedule

The Seventh Schedule

The Eighth Schedule

The Ninth Schedule

The Tenth Schedule

The Eleventh Schedule

The Twelfth Schedule

Access complete Bare Act here and Notification and Circular here.

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