Section 185: Punishment for Contravention of Provisions under the Insolvency and Bankruptcy Code, 2016

Section 185 of the Insolvency and Bankruptcy Code, 2016 is an offence and penalty provision in Part III. It prescribes punishment where an insolvency professional deliberately contravenes the provisions of Part III of the Code.

Text of Section 185

185. Punishment for contravention of provisions.

If an insolvency professional deliberately contravenes the provisions of this Part, he shall be punishable with imprisonment for a term which may extend to six months, or with fine, which shall not be less than one lakh rupees, but may extend to five lakhs rupees, or with both.

Meaning and scope of Section 185

Section 185 applies to an insolvency professional who deliberately contravenes provisions of Part III of the Code. Part III concerns insolvency resolution and bankruptcy for individuals and partnership firms, subject to the extent to which its provisions have been brought into force and made applicable.

The word deliberately is important to the structure of the offence. The statutory provision is directed at a deliberate contravention, rather than merely stating that every breach of Part III automatically attracts the criminal punishment prescribed by Section 185.

Who is an insolvency professional?

Section 3(19) of the Code defines an insolvency professional as a person enrolled under Section 206 with an insolvency professional agency as its member and registered with the Insolvency and Bankruptcy Board of India as an insolvency professional under Section 207.

Section 206 provides that no person shall render services as an insolvency professional under the Code without being enrolled as a member of an insolvency professional agency and registered with the Board. Section 207 deals with registration of insolvency professionals.

Punishment prescribed by Section 185

Element	Section 185 provision
Person covered	Insolvency professional
Conduct	Deliberate contravention of provisions of Part III
Imprisonment	May extend to six months
Minimum fine	One lakh rupees
Maximum fine	Five lakh rupees
Combined punishment	Imprisonment and fine may both be imposed

Part III and present application

Part III of the Code contains the framework for insolvency resolution and bankruptcy of individuals and partnership firms. The Central Government has brought Sections 94 to 187 into force, from 1 December 2019, insofar as they relate to personal guarantors to corporate debtors. Accordingly, the practical application of Section 185 must be considered together with the relevant commencement notification and the category of debtor or proceeding involved.

Current law note: The Insolvency and Bankruptcy Code (Amendment) Act, 2026 received Presidential assent on 6 April 2026. The IBBI records the Amendment Act in its current legal framework, and a Central Government commencement notification under Section 1(2) of the Amendment Act was issued on 25 May 2026. Section 185 should therefore be read with the Code as currently in force and with the applicable commencement notifications for the particular proceeding.

Related offence and penalty provisions

Section 185 appears in Chapter VII of Part III, titled "Offences and Penalties". The surrounding provisions include Section 184 - Punishment for false information by creditor in insolvency resolution process, Section 186 - Punishment for false information and concealment by bankrupt and Section 187 - Punishment for certain actions.

Official legal resources

For the authoritative statutory text and current legal framework, refer to the Insolvency and Bankruptcy Code, 2016 on India Code and the IBBI Legal Framework. Amendments are available through the IBBI Acts page, while commencement and other notifications are available from the IBBI Notifications page.

Last reviewed: 30 September 2026. Verify subsequent amendments, notifications and the applicability of Part III before relying on this provision in a particular matter.