The Insolvency and Bankruptcy Code, 2016.
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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 Number
31
Enactment
2016-05-28
Ministry
Ministry Of Corporate Affairs
PRELIMINARY
CHAPTER I PRELIMINARY
CHAPTER II CORPORATE INSOLVENCY RESOLUTION PROCESS
Section 6Persons who may initiate corporate insolvency resolution process.Section 7Initiation of corporate insolvency resolution process by financial creditor.Section 8Insolvency resolution by operational creditor.Section 9Application for initiation of corporate insolvency resolution process by operational creditor.Section 10Initiation of corporate insolvency resolution process by corporate applicant.Section 11Persons not entitled to make application.Section 11ADisposal of applications under section 54C and under section 7 or section 9 or section 10.Section 12Time-limit for completion of insolvency resolution process.Section 12AWithdrawal of application admitted under section 7, 9 or 10.Section 13Declaration of moratorium and public announcement.Section 14Moratorium.Section 15Public announcement of corporate insolvency resolution process.Section 16Appointment and tenure of interim resolution professional.Section 17Management of affairs of corporate debtor by interim resolution professional.Section 18Duties of interim resolution professional.Section 19Personnel to extend co-operation to interim resolution professional.Section 20Management of operations of corporate debtor as going concern.Section 21Committee of creditors.Section 22Appointment of resolution professional.Section 23Resolution professional to conduct corporate insolvency resolution process.Section 24Meeting of committee of creditors.Section 25Duties of resolution professional.Section 25ARights and duties of authorised representative of financial creditors.Section 26Application for avoidance of transactions not to affect proceedings.Section 27Replacement of resolution professional by committee of creditors.Section 28Approval of committee of creditors for certain actions.Section 29Preparation of information memorandum.Section 29APerson not eligible to be resolution applicant.Section 30Submission of resolution plan.Section 31Approval of resolution plan.Section 32Appeal.Section 32ALiability for prior offences, etc.
CHAPTER III LIQUIDATION PROCESS
Section 33Initiation of liquidation.Section 34Appointment of liquidator and fee to be paid.Section 35Powers and duties of liquidator.Section 36Liquidation estate.Section 37Powers of liquidator to access information.Section 38Consolidation of claims.Section 39Verification of claims.Section 40Admission or rejection of claims.Section 41Determination of valuation of claims.Section 42Appeal against the decision of liquidator.Section 43Preferential transactions and relevant time.Section 44Orders in case of preferential transactions.Section 45Avoidance of undervalued transactions.Section 46Relevant period for avoidable transactions.Section 47Application by creditor in cases of undervalued transactions.Section 48Order in cases of undervalued transactions.Section 49Transactions defrauding creditors.Section 50Extortionate credit transactions.Section 51Orders of Adjudicating Authority in respect of extortionate credit transactions.Section 52Secured creditor in liquidation proceedings.Section 53Distribution of assets.Section 54Dissolution of corporate debtor.
CHAPTER III-A PRE-PACKAGED INSOLVENCY RESOLUTION PROCESS
Section 54ACorporate debtors eligible for pre-packaged insolvency resolution process.Section 54BDuties of insolvency professional before initiation of pre-packaged insolvency resolution process.Section 54CApplication to initiate pre-packaged insolvency resolution process.Section 54DTime-limit for completion of pre-packaged insolvency resolution processSection 54EDeclaration of moratorium and public announcement during pre-packaged insolvency resolution process.Section 54FDuties and powers of resolution professional during pre-packaged insolvency resolution processSection 54GList of claims and preliminary information memorandum.Section 54HManagement of affairs of corporate debtor.Section 54ICommittee of creditors.Section 54JVesting management of corporate debtor with resolution professional.Section 54KConsideration and approval of resolution plan.Section 54LApproval of resolution plan.Section 54MAppeal against order under section 54L.Section 54NTermination of pre-packaged insolvency resolution process.Section 54OInitiation of corporate insolvency resolution process.Section 54PApplication of provisions of Chapters II, III, VI and VII to this Chapter.
CHAPTER IV FAST TRACK CORPORATE INSOLVENCY RESOLUTION PROCESS
CHAPTER V VOLUNTARY LIQUIDATION OF CORPORATE PERSONS
CHAPTER VII OFFENCES AND PENALTIES
Section 68Punishment for concealment of property.Section 69Punishment for transactions defrauding creditors.Section 70Punishment for misconduct in course of corporate insolvency resolution process.Section 71Punishment for falsification of books of corporate debtor.Section 72Punishment for wilful and material omissions from statements relating to affairs of corporate debtor.Section 73Punishment for false representations to creditors.Section 74Punishment for contravention of moratorium or the resolution plan.Section 75Punishment for false information furnished in application.Section 76Punishment for non-disclosure of dispute or payment of debt by operational creditor.Section 77Punishment for providing false information in application made by corporate debtor.Section 77APunishment for offences related to pre-packaged insolvency resolution process.
CHAPTER VI ADJUDICATING AUTHORITY FOR CORPORATE PERSONS
Section 60Adjudicating Authority for corporate persons.Section 61Appeals and Appellate Authority.Section 62Appeal to Supreme Court.Section 63Civil court not to have jurisdiction.Section 64Expeditious disposal of applications.Section 65Fraudulent or malicious initiation of proceedings.Section 66Fraudulent trading or wrongful trading.Section 67Proceedings under section 66.Section 67AFraudulent management of corporate debtor during pre-packaged insolvency resolution process
CHAPTER I PRELIMINARY
CHAPTER II FRESH START PROCESS
Section 80Eligibility for making an application.Section 81Application for fresh start order.Section 82Appointment of resolution professional.Section 83Examination of application by resolution professional.Section 84Admission or rejection of application by Adjudicating Authority.Section 85Effect of admission of application.Section 86Objections by creditor and their examination by resolution professional.Section 87Application against decision of resolution professional.Section 88General duties of debtor.Section 89Replacement of resolution professional.Section 90Directions for compliances of restrictions, etc.Section 91Revocation of order admitting application.Section 92Discharge order.Section 93Standard of conduct.
CHAPTER III INSOLVENCY RESOLUTION PROCESS
Section 94Application by debtor to initiate insolvency resolution process.Section 95Application by creditor to initiate insolvency resolution process.Section 96Interim moratorium.Section 97Appointment of resolution professional.Section 98Replacement of resolution professional.Section 99Submission of report by resolution professional.Section 100Admission or rejection of application.Section 101Moratorium.Section 102Public notice and claims from creditors.Section 103Registering of claims by creditors.Section 104Preparation of list of creditors.Section 105Repayment plan.Section 106Report of resolution professional on repayment plan.Section 107Summoning of meeting of creditors.Section 108Conduct of meeting of creditors.Section 109Voting rights in meeting of creditors.Section 110Rights of secured creditors in relation to repayment plan.Section 111Approval of repayment plan by creditors.Section 112Report of meeting of creditors on repayment plan.Section 113Notice of decisions taken at meeting of creditors.Section 114Order of Adjudicating Authority on repayment plan.Section 115Effect of order of Adjudicating Authority on repayment plan.Section 116Implementation and supervision of repayment plan.Section 117Completion of repayment plan.Section 118Repayment plan coming to end prematurely.Section 119Discharge order.Section 120Standard of conduct.
CHAPTER IV BANKRUPTCY ORDER FOR INDIVIDUALS AND PARTNERSHIP FIRMS
Section 121Application for bankruptcy.Section 122Application by debtor.Section 123Application by creditor.Section 124Effect of application.Section 125Appointment of insolvency professional as bankruptcy trustee.Section 126Bankruptcy order.Section 127Validity of bankruptcy order.Section 128Effect of bankruptcy order.Section 129Statement of financial position.Section 130Public notice inviting claims from creditors.Section 131Registration of claims.Section 132Preparation of list of creditors.Section 133Summoning of meeting of creditors.Section 134Conduct of meeting of creditors.Section 135Voting rights of creditors.Section 136Administration and distribution of estate of bankruptcy.Section 137Completion of administration.Section 138Discharge order.Section 139Effect of discharge.Section 140Disqualification of bankrupt.Section 141Restrictions on bankrupt.Section 142Modification or recall of bankruptcy order.Section 143Standard of conduct.Section 144Fees of bankruptcy trustee.Section 145Replacement of bankruptcy trustee.Section 146Resignation by bankruptcy trustee.Section 147Vacancy in office of bankruptcy trustee.Section 148Release of bankruptcy trustee.
CHAPTER V ADMINISTRATION AND DISTRIBUTION OF THE ESTATE OF THE BANKRUPT
Section 149Functions of bankruptcy trustee.Section 150Duties of bankrupt towards bankruptcy trustee.Section 151Rights of bankruptcy trustee.Section 152General powers of bankruptcy trustee.Section 153Approval of creditors for certain acts.Section 154Vesting of estate of bankrupt in bankruptcy trustee.Section 155Estate of bankrupt.Section 156Delivery of property and documents to bankruptcy trustee.Section 157Acquisition of control by bankruptcy trustee.Section 158Restrictions on disposition of property.Section 159After-acquired property of bankrupt.Section 160Onerous property of bankrupt.Section 161Notice to disclaim onerous property.Section 162Disclaimer of leaseholds.Section 163Challenge against disclaimed property.Section 164Undervalued transactions.Section 165Preference transactions.Section 166Effect of order.Section 167Extortionate credit transactions.Section 168Obligations under contracts.Section 169Continuance of proceedings on death of bankrupt.Section 170Administration of estate of deceased bankrupt.Section 171Proof of debt.Section 172Proof of debt by secured creditors.Section 173Mutual credit and set-off.Section 174Distribution of interim dividend.Section 175Distribution of property.Section 176Final dividend.Section 177Claims of creditors.Section 178Priority 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
Section 188Establishment and incorporation of Board.Section 189Constitution of Board.Section 190Removal of member from office.Section 191Powers of Chairperson.Section 192Meetings of Board.Section 193Member not to participate in meetings in certain cases.Section 194Vacancies, etc., not to invalidate proceedings of Board, Officers and employees of Board.Section 195Power to designate financial sector regulator.
CHAPTER II POWERS AND FUNCTIONS OF THE BOARD
CHAPTER III INSOLVENCY PROFESSIONAL AGENCIES
Section 199No person to function as insolvency professional agency without valid certificate of registration.Section 200Principles governing registration of insolvency professional agency.Section 201Registration of insolvency professional agency.Section 202Appeal to National Company Law Appellate Tribunal.Section 203Governing Board of insolvency professional agency.Section 204Functions of insolvency professional agencies.Section 205Insolvency professional agencies to make bye-laws.
CHAPTER IV INSOLVENCY PROFESSIONALS
CHAPTER V INFORMATION UTILITIES
Section 209No person to function as information utility without certificate of registration.Section 210Registration of information utility.Section 211Appeal to National Company Law Appellate Tribunal.Section 212Governing Board of information utility.Section 213Core services, etc., of information utilities.Section 214Obligations of information utility.Section 215Procedure for submission, etc., of financial information.Section 216Rights and obligations of persons submitting financial information.
CHAPTER VI INSPECTION AND INVESTIGATION
Section 217Complaints against insolvency professional agency or its member or information utility.Section 218Investigation of insolvency professional agency or its member or information utility.Section 219Show cause notice to insolvency professional agency or its member or information utility.Section 220Appointment of disciplinary committee.
CHAPTER VII FINANCE, ACCOUNTS AND AUDIT
MISCELLANEOUS
Section 224Insolvency and Bankruptcy Fund.Section 225Power of Central Government to issue directions.Section 226Power of Central Government to supersede Board.Section 227Power of Central Government to notify financial service providers, etc.Section 228Budget.Section 229Annual report.Section 230Delegation.Section 231Bar of jurisdiction.Section 232Members, officers and employees of Board to the public servants.Section 233Protection of action taken in good faith.Section 234Agreements with foreign countries.Section 235Letter of request to a country outside India in certain cases.Section 235APunishment where no specific penalty or punishment is provided.Section 236Trial of offences by Special Court.Section 237Appeal and revision.Section 238Provisions of this Code to override other laws.Section 238ALimitation.Section 239Power to make rules.Section 240Power to make regulations.Section 240AApplication of this Code to micro, small and medium enterprises.Section 241Rules and regulations to be laid before Parliament.Section 242Power to remove difficulties.Section 243Repeal of certain enactments and savings.Section 244Transitional provisions.Section 245Amendments of Act 9 of 1932.Section 246Amendments of Act 1 of 1944.Section 247Amendments of Act 43 of 1961.Section 248Amendments of Act 52 of 1962.Section 249Amendments of Act 51 of 1993.Section 250Amendments of Act 32 of 1994.Section 251Amendments of Act 54 of 2002.Section 252Amendments of Act 1 of 2004.Section 253Amendments of Act 51 of 2007.Section 254Amendments of Act 6 of 2009.Section 255Amendments of Act 18 of 2013.