Section 223: Accounts and Audit under the Insolvency and Bankruptcy Code, 2016
Section 223 of the Insolvency and Bankruptcy Code, 2016 governs the maintenance, audit and annual reporting of the accounts of the Insolvency and Bankruptcy Board of India. It forms part of Chapter VII, dealing with finance, accounts and audit of the Board.
Text of Section 223 - Accounts and audit
(1) The Board shall maintain proper accounts and other relevant records and prepare an annual statement of accounts in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India.
(2) The accounts of the Board shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Board to the Comptroller and Auditor-General of India.
(3) The Comptroller and Auditor-General of India and any other person appointed by him in connection with the audit of the accounts of the Board shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General generally has in connection with the audit of the Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Board.
(4) The accounts of the Board as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament.
Meaning and scope of Section 223
For Section 223, the expression "Board" refers to the Insolvency and Bankruptcy Board of India (IBBI), the statutory body established under the Code. The section creates a public accountability framework for the Board's finances rather than regulating the accounts of a corporate debtor, creditor, resolution professional or other participant in an insolvency proceeding.
1. Maintenance of accounts and annual statement
Sub-section (1) places a statutory duty on the Board to maintain proper accounts and other relevant records. It must also prepare an annual statement of accounts in the form prescribed by the Central Government after consultation with the Comptroller and Auditor-General of India.
2. Audit by the Comptroller and Auditor-General of India
Under sub-section (2), the Board's accounts are subject to audit by the Comptroller and Auditor-General of India (CAG) at intervals specified by the CAG. The expenditure connected with that audit is payable by the Board.
3. Powers for conducting the audit
Sub-section (3) gives the CAG, and a person appointed by the CAG for the audit, the rights, privileges and authority ordinarily available in the audit of Government accounts. This expressly includes the power to require production of books, accounts, vouchers, documents and papers and to inspect offices of the Board.
4. Annual reporting to Parliament
Sub-section (4) requires the certified accounts and the accompanying audit report to be sent annually to the Central Government. The Central Government must then cause them to be laid before each House of Parliament.
Key legal points
- Section 223 concerns the financial accountability and statutory audit of IBBI itself.
- The annual statement of accounts is prepared in the prescribed form.
- The CAG is the statutory auditor contemplated by the section and determines the audit intervals.
- The audit authority includes access to relevant financial records, supporting documents and offices of the Board.
- The final certified accounts and audit report are subject to parliamentary oversight through annual laying before both Houses of Parliament.
Related provisions
Section 223 should be read in the context of Chapter VII of the Code. Section 221 deals with grants by the Central Government, Section 222 deals with the Board's Fund, and Section 224 provides for the Insolvency and Bankruptcy Fund.
This page is an informational presentation of Section 223. For the authoritative statutory text and current legal framework, refer to the official sources linked on this page.