Sections 266 and 267 of Companies Act 2013: Omitted Provisions and Current Legal Status

Sections 266 and 267 originally formed part of Chapter XIX of the Companies Act, 2013. Section 266 concerned the power of the Tribunal to assess damages against delinquent directors and others, while Section 267 dealt with punishment for certain offences. Both sections were omitted with effect from 15 November 2016 as part of the insolvency law reforms introduced through the Insolvency and Bankruptcy Code, 2016.

Current legal status: Sections 266 and 267 are omitted provisions and are not operative provisions of the Companies Act, 2013 today. The omission was made through Section 255 and the Eleventh Schedule to the Insolvency and Bankruptcy Code, 2016, with effect from 15 November 2016.

Provision	Original subject	Present status
Section 266	Power of Tribunal to assess damages against delinquent directors, etc.	Omitted with effect from 15 November 2016
Section 267	Punishment for certain offences	Omitted with effect from 15 November 2016

Section 266 - Power of Tribunal to Assess Damages Against Delinquent Directors, etc.

Meaning of the former provision: The heading of Section 266 identified a power of the Tribunal relating to assessment of damages against delinquent directors and other persons in the former statutory framework for revival and rehabilitation of sick companies.

Present position: Section 266 was omitted by Section 255 read with the Eleventh Schedule to the Insolvency and Bankruptcy Code, 2016, with effect from 15 November 2016. It should therefore be described as a historical or omitted provision rather than as a presently enforceable section.

Section 267 - Punishment for Certain Offences

Meaning of the former provision: Section 267 was titled "Punishment for certain offences" and belonged to the same former Chapter XIX scheme concerning revival and rehabilitation of sick companies.

Present position: Section 267 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 266 and 267 Omitted?

The Insolvency and Bankruptcy Code, 2016 introduced a consolidated insolvency and bankruptcy framework and amended the Companies Act, 2013 through its Eleventh Schedule. Section 255 of the Code provides for amendments to the Companies Act, 2013 in the manner specified in that Schedule. As part of those amendments, the former Chapter XIX provisions on revival and rehabilitation, including Sections 266 and 267, were omitted.

Practical Legal Effect

For present-day research, compliance or litigation, Sections 266 and 267 should not be cited as currently operative powers or offences. Their importance is primarily historical, including for understanding the original structure of Chapter XIX and the transition from the Companies Act revival and rehabilitation framework to the insolvency regime established under the Insolvency and Bankruptcy Code, 2016.

Research note: When dealing with an older transaction, proceeding or cause of action, the applicable law can depend on the relevant dates, commencement provisions, transitional arrangements and other saving provisions. The omitted status of Sections 266 and 267 should therefore be considered together with the facts and dates of the particular matter.

Official Legal Resources

For the current statutory text and amendments, refer to the official Companies Act, 2013 published by the Ministry of Corporate Affairs, the Insolvency and Bankruptcy Code, 2016 published by the Ministry of Corporate Affairs, and the India Code portal.

Related Companies Act Provisions

Readers may also refer to the surrounding provisions and related winding-up material:

Legal status reviewed: 17 September 2026.