Sections 255 and 256 of Companies Act 2013: Omitted Provisions

Sections 255 and 256 originally formed part of Chapter XIX of the Companies Act, 2013 dealing with revival and rehabilitation of sick companies. Both provisions were omitted with effect from 15 November 2016 following changes made by the Insolvency and Bankruptcy Code, 2016.

Current legal status: Sections 255 and 256 of the Companies Act, 2013 are omitted provisions. They should not be presented as operative procedures under the current Companies Act framework.

Section 255 - Exclusion of Certain Time in Computing Period of Limitation

Meaning of the former provision: Section 255 was titled "Exclusion of certain time in computing period of limitation." In its original statutory setting, it concerned the exclusion of specified time while computing limitation in proceedings connected with the former revival and rehabilitation framework for sick companies.

Present position: Section 255 was omitted by section 255 and the Eleventh Schedule to the Insolvency and Bankruptcy Code, 2016, with effect from 15 November 2016.

Section 256 - Appointment of Interim Administrator

Meaning of the former provision: Section 256 was titled "Appointment of interim administrator." It belonged to the former statutory mechanism for revival and rehabilitation of sick companies and dealt with appointment of an interim administrator in that framework.

Present position: Section 256 was also omitted by section 255 and the Eleventh Schedule to the Insolvency and Bankruptcy Code, 2016, with effect from 15 November 2016.

Why Were Sections 255 and 256 Omitted?

The Insolvency and Bankruptcy Code, 2016 introduced a consolidated insolvency and bankruptcy framework and amended the Companies Act, 2013 through its Eleventh Schedule. As part of that restructuring, the Companies Act provisions in Chapter XIX concerning revival and rehabilitation of sick companies, including Sections 255 and 256, were omitted.

Practical note: For a current corporate insolvency or resolution issue, the applicable provisions should be identified under the presently operative Companies Act, 2013 and the Insolvency and Bankruptcy Code, 2016, as amended, rather than relying on the omitted Sections 255 and 256.

Official Legal Resources

Last reviewed: 17 September 2026.