Sections 253 and 254 of Companies Act 2013: Determination of Sickness and Revival and Rehabilitation
Sections 253 and 254 of the Companies Act, 2013 originally formed part of Chapter XIX dealing with revival and rehabilitation of sick companies. These provisions are no longer operative. They were omitted by section 255 and the Eleventh Schedule to the Insolvency and Bankruptcy Code, 2016 with effect from 15 November 2016.
Section 253 - Determination of sickness
Section 253 was titled "Determination of sickness". In the current Companies Act text, the provision stands omitted with effect from 15 November 2016 by the Insolvency and Bankruptcy Code, 2016.
Historically, the provision belonged to the statutory framework intended to determine whether a company was a sick company. That Companies Act mechanism should now be read only as historical background because the provision itself has been omitted.
Section 254 - Application for revival and rehabilitation
Section 254 was titled "Application for revival and rehabilitation". It also stands omitted with effect from 15 November 2016 under section 255 and the Eleventh Schedule to the Insolvency and Bankruptcy Code, 2016.
Historically, Section 254 contemplated an application for revival and rehabilitation after determination of sickness under the former Section 253 framework. Since both provisions were omitted, this is not the present statutory route for corporate insolvency resolution.
Present legal position
| Provision | Former subject | Current status |
|---|---|---|
| Section 253 | Determination of sickness | Omitted with effect from 15 November 2016 |
| Section 254 | Application for revival and rehabilitation | Omitted with effect from 15 November 2016 |
What law now governs corporate insolvency and resolution?
The Insolvency and Bankruptcy Code, 2016 provides the principal modern framework for insolvency resolution and liquidation of corporate persons. The Insolvency and Bankruptcy Board of India issues and updates regulations governing processes under the Code. The National Company Law Tribunal functions as the adjudicating authority for corporate insolvency matters under the Code, subject to the statutory scheme.
Official legal resources
- Ministry of Corporate Affairs - Companies Act, 2013
- Insolvency and Bankruptcy Board of India
- IBBI - Updated Regulations
- India Code - Central Acts and statutory material
Practical takeaway
Sections 253 and 254 remain useful for understanding the legislative history of sick-company rehabilitation under the Companies Act, 2013, but they do not provide a current remedy. For a present corporate insolvency or resolution issue, the applicable provisions of the Insolvency and Bankruptcy Code, 2016, the rules and regulations made under it, and current judicial decisions should be examined.
Last reviewed: 17 September 2026. This page is a general legal information resource and should be read with the latest statutory text, notifications, regulations and judicial decisions applicable to the facts of a particular matter.