Sections 259 and 260 of Companies Act 2013: Appointment, Powers and Duties of Company Administrator
Sections 259 and 260 of the Companies Act, 2013 originally formed part of Chapter XIX dealing with revival and rehabilitation of sick companies. Section 259 concerned the appointment of an administrator, while Section 260 dealt with the powers and duties of the company administrator.
Section 259 - Appointment of Administrator
What did Section 259 cover?
Section 259 was titled "Appointment of administrator" and formed part of the statutory framework relating to revival and rehabilitation of sick companies.
The section has been omitted from the Companies Act, 2013 by Section 255 and the Eleventh Schedule to the Insolvency and Bankruptcy Code, 2016, with effect from 15 November 2016.
Section 260 - Powers and Duties of Company Administrator
What did Section 260 cover?
Section 260 was titled "Powers and duties of company administrator". It belonged to the same former rehabilitation framework and dealt with the statutory role of the company administrator.
Section 260 was also omitted by Section 255 read with the Eleventh Schedule to the Insolvency and Bankruptcy Code, 2016, with effect from 15 November 2016.
Why Were Sections 259 and 260 Omitted?
The Insolvency and Bankruptcy Code, 2016 introduced a consolidated statutory framework for insolvency resolution and liquidation. As part of the consequential amendments made to the Companies Act, 2013, the Eleventh Schedule to the Code omitted Sections 253 to 269 of the Companies Act.
Sections 259 and 260 fell within this group of omitted provisions. Therefore, references to the appointment of a company administrator under Section 259 and the powers and duties of such administrator under Section 260 should now be read as part of the historical legislative framework rather than as presently operative provisions.
Current Status at a Glance
| Provision | Subject | Current Status |
|---|---|---|
| Section 259 | Appointment of administrator | Omitted with effect from 15 November 2016 |
| Section 260 | Powers and duties of company administrator | Omitted with effect from 15 November 2016 |
| Omitting law | Section 255 and Eleventh Schedule to the Insolvency and Bankruptcy Code, 2016 | |
Legal Effect for Readers
A person researching Sections 259 or 260 should therefore first note that neither provision currently creates an operative power, duty or procedure under the Companies Act, 2013. The provisions remain relevant primarily for understanding the legislative history of the earlier revival and rehabilitation framework.
For current insolvency and corporate resolution matters, the applicable provisions of the Insolvency and Bankruptcy Code, 2016 and the rules and regulations made under it should be examined according to the nature of the proceeding.
Related Companies Act Provisions
For connected provisions of the Companies Act, 2013, readers may also refer to Sections 253 and 254 concerning determination of sickness and application for revival and rehabilitation, Sections 255 and 256 concerning limitation and appointment of interim administrator, and Sections 257 and 258 concerning committee of creditors and orders of the Tribunal. These provisions were also part of the former Chapter XIX framework.
Legal status reviewed: September 2026. Readers should verify the latest statutory text, notifications, rules and judicial decisions before relying on any provision for a particular proceeding.