The Insolvency and Bankruptcy Code, 2016
Part-I Preliminary
Section 2: Application.
*2. The provisions of this Code shall apply to—
(a) any company incorporated under the Companies Act, 2013 or under any previous company law;
(b) any other company governed by any special Act for the time being in force, except in so far as the said provisions are inconsistent with the provisions of such special Act;
(c) any Limited Liability Partnership incorporated under the Limited Liability Partnership Act, 2008;
(d) such other body incorporated under any law for the time being in force, as the Central Government may, by notification, specify in this behalf; 1[***]
2[(e)J1 personal guarantorsJ2 to corporate debtors;
(f) partnership firms and proprietorship firms; and
(g) individuals, other than persons referred to in clause (e),]
in relation to their insolvency, liquidation, voluntary liquidation or bankruptcy, as the case may be.
Reference
- w.e.f. 01.12.2016, Clause (a) to clause (d) of Section 2 (except with regard to voluntary liquidation or Bankruptcy) [S.O. 3594(E) dated 30.11.2016].
- w.e.f. 01.04.2017, Clause (a) to clause (d) of section 2 relating to voluntary liquidation or bankruptcy [S.O. 1570(E) dated 15.05.2017].
- w.e.f. 01.12.2019, Section 2(e) of the Code only in so far as they relate to personal guarantors to corporate debtors [S.O. 4126(E) dated 15.11.2019].
1. Omitted by the Insolvency and Bankruptcy Code (Amendment) Act, 2018, w.e.f. 23.11.2017, the word “and“.
2. Subs. by the Insolvency and Bankruptcy Code (Amendment) Act, 2018, w.e.f. 23.11.2017, for the clause: “(e) partnership firms and individuals,”.
Judicial Pronouncements:
J1. Section 2(e) would, when it refers to the application of the Code to a personal guarantor of a corporate debtor, apply only for the limited purpose contained in Section 60(2) and (3). [State Bank of India v. V. Ramakrishnan and Anr. (2018) ibclaw.in 29 SC, p21]
J2. The amendment introduced Section 2(e) i.e. personal guarantors to corporate debtors, as a distinct category to whom the Code applied. [Lalit Kumar Jain v. Union of India and Ors. (2021) ibclaw.in 61 SC, p85&88]
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