Section 197 of the Insolvency and Bankruptcy Code, 2016: Constitution of Advisory, Executive or Other Committee
Section 197 empowers the Insolvency and Bankruptcy Board of India to constitute advisory committees, executive committees and other committees that it considers appropriate for the efficient discharge of its statutory functions.
Section 197 - Statutory Provision
The Board may, for the efficient discharge of its functions, constitute advisory and executive committees or such other committees, as it may deem fit, consisting of a Chairperson and such other members as may be specified by regulations.
Meaning and Scope of Section 197
The provision gives the IBBI organisational flexibility to obtain specialised assistance and distribute committee-level work where this supports efficient discharge of the Board's functions. The statutory power is broad enough to cover advisory and executive committees as well as other committees considered appropriate by the Board.
Purpose: Efficient Discharge of Functions
The express statutory purpose is the efficient discharge of the Board's functions. Those functions are principally set out in Section 196 and include regulation, registration, monitoring, inspection, investigation, data and research, grievance redressal, governance and regulation-making responsibilities.
Types of Committees
| Committee Type | Section 197 Position |
|---|---|
| Advisory committee | May be constituted by the Board for efficient discharge of its functions. |
| Executive committee | Expressly contemplated by Section 197. |
| Other committee | The Board may constitute such other committee as it deems fit for the statutory purpose. |
Chairperson and Members
Section 197 provides that a committee consists of a Chairperson and such other members as may be specified by regulations. The provision therefore gives the statutory basis for committee constitution while leaving applicable regulatory details to the Board's regulation-making framework.
Relationship with Sections 196 and 240
Section 196(1)(l) expressly authorises the Board to constitute such committees as may be required, including in particular the committees laid down in Section 197. Section 240 empowers the Board to make regulations consistent with the Code and the rules made thereunder, including on matters required to be specified by regulations.
Why Section 197 Matters
The committee mechanism enables the regulator to use focused institutional arrangements for particular subjects or functions without altering the statutory responsibility of the Board. Committees may support expert consultation, internal governance or other functions depending on their constitution and governing framework.
Official Legal Resources
India Code - Central Acts and Legislation