PART II SECTION I

The following Act of Parliament received the assent of the President on the 28th May, 2016, and is hereby published for general information:-

THE INSOLVENCY AND BANKRUPTCY CODE, 2016

NO. 31 OF 2016
[28th May, 2016.]


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.


BE it enacted by Parliament in the Sixty-seventh Year of the Republic of India as follows:-

 

PART I
PRELIMINARY

1. Short title, extent and commencement.

(1) This Code may be called the Insolvency and Bankruptcy Code, 2016.

(2) It extends to the whole of India:

Provided that Part III of this Code shall not extend to the State of Jammu and Kashmir.

(3) It shall come into force on such date as the Central Government may, by notification
in the Official Gazette, appoint: 

 

Provided that different dates may be appointed for different provisions of this Code and any reference in any such provision to the commencement of this Code shall be construed as a reference to the commencement of that provision.

Section 2 Application

Section 3 Definitions

Section 4 Application of Part II

Section 5 Definitions of Part II

Section 6 Persons who may initiate corporate insolvency resolution process

CHAPTER II CORPORATE INSOLVENCY RESOLUTION PROCESS

Section 7 Initiation of corporate insolvency resolution process by financial creditor

Section 8 Insolvency resolution by operational creditor

Section 9 Application for initiation of corporate insolvency resolution process by operational creditor

Section 10 Initiation of corporate insolvency resolution process by corporate applicant

Section 11 Persons not entitled to make application

Section 12 Time-limit for completion of insolvency resolution process

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 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 30 Submission of resolution plan

Section 31 Approval of resolution plan

Section 32 Appeal

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 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

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 nondisclosure of dispute or repayment of debt by operational creditor

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

PART III INSOLVENCY RESOLUTION AND BANKRUPTCY FOR INDIVIDUALS AND PARTNERSHIP FIRMS

CHAPTER I PRELIMINARY

Section 78 Application

Section 79 Definitions

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

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 individuals partnerships

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 Restrictions 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

 

 

 

  

 

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