Section 190 of the Insolvency and Bankruptcy Code, 2016: Removal of Member from Office
Section 190 specifies the statutory grounds on which the Central Government may remove a member of the Insolvency and Bankruptcy Board of India from office. It also expressly protects the right to a reasonable opportunity of being heard where removal is proposed for abuse of position detrimental to the public interest.
Section 190 - Statutory Provision
The Central Government may remove a member from office if he-
(a) is an undischarged bankrupt as defined under Part III;
(b) has become physically or mentally incapable of acting as a member;
(c) has been convicted of an offence, which in the opinion of the Central Government involves moral turpitude;
(d) has, so abused his position as to render his continuation in office detrimental to the public interest:
Provided that no member shall be removed under clause (d) unless he has been given a reasonable opportunity of being heard in the matter.
Meaning and Scope of Section 190
Section 190 deals with removal from office of a member of the Insolvency and Bankruptcy Board of India. The constitution of the Board, including its Chairperson and members, is governed by Section 189 of the Insolvency and Bankruptcy Code, 2016.
Grounds for Removal
| Clause | Ground | Legal Effect |
|---|---|---|
| Section 190(a) | Undischarged bankrupt as defined under Part III of the Code. | The Central Government may remove the member from office. |
| Section 190(b) | Physical or mental incapacity to act as a member. | The Central Government may remove the member from office. |
| Section 190(c) | Conviction for an offence which, in the opinion of the Central Government, involves moral turpitude. | The Central Government may remove the member from office. |
| Section 190(d) | Abuse of position making continuation in office detrimental to the public interest. | Removal may occur only after giving the member a reasonable opportunity of being heard. |
Undischarged Bankrupt
Clause (a) expressly refers to an undischarged bankrupt as defined under Part III of the Code. Part III of the Insolvency and Bankruptcy Code contains provisions relating to insolvency resolution and bankruptcy for individuals and partnership firms.
Physical or Mental Incapacity
Clause (b) permits removal where a member has become physically or mentally incapable of acting as a member. The statutory test is incapacity to perform the role of a member.
Conviction Involving Moral Turpitude
Under clause (c), removal may follow where the member has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude. The provision therefore requires a conviction and the Central Government's opinion regarding the character of the offence.
Abuse of Position and Public Interest
Clause (d) applies where a member has abused his position to such an extent that continuation in office would be detrimental to the public interest. The proviso creates an express procedural safeguard: removal on this ground cannot take place unless the member has first been given a reasonable opportunity of being heard.
Reasonable Opportunity of Being Heard
The hearing requirement is specifically attached to removal under Section 190(d). It reflects a statutory requirement of procedural fairness before the Central Government removes a member on the ground of abuse of position detrimental to the public interest.
Related IBC Provisions
Section 188: Establishes and incorporates the Insolvency and Bankruptcy Board of India.
Section 189: Provides for the constitution, membership, qualifications, selection, tenure and service conditions of the Board.
Section 191: Deals with the powers of the Chairperson.
Section 192: Deals with meetings of the Board.
Section 196: Sets out the powers and functions of the Board.
Official Legal Resources
India Code - Central Acts and Legislation