Section 229 Annual Report - Insolvency and Bankruptcy Code 2016
Section 229 of the Insolvency and Bankruptcy Code, 2016 requires the Insolvency and Bankruptcy Board of India to prepare an annual report on its activities, submit it to the Central Government, and enables the report to be laid before both Houses of Parliament.
Text of Section 229 - Annual report
(1) The Board shall prepare, in such form and at such time in each financial year as may be prescribed, its annual report, giving a full account of its activities during the previous financial year, and submit a copy thereof to the Central Government.
(2) A copy of the report received under sub-section (1) shall be laid, as soon as may be after it is received, before each House of Parliament.
Meaning and scope of Section 229
Section 229 creates a statutory reporting and parliamentary accountability mechanism for the Insolvency and Bankruptcy Board of India (IBBI). The expression "Board" refers to the Insolvency and Bankruptcy Board of India established under Section 188 of the Code.
Under sub-section (1), the IBBI must prepare an annual report for each financial year in the prescribed form and according to the prescribed timetable. The report is required to give a full account of the Board's activities during the preceding financial year and must be submitted to the Central Government.
Under sub-section (2), after the Central Government receives the annual report, a copy is required to be laid before each House of Parliament. This places the Board's annual activities within a formal framework of public and parliamentary reporting.
Annual Report Rules under Section 229
The Central Government has prescribed the reporting framework through the Insolvency and Bankruptcy Board of India (Annual Report) Rules, 2018, made under Section 239(2)(zm) read with Section 229(1) of the Code. The Rules prescribe the form and reporting requirements for the IBBI annual report.
Current submission timetable
The Insolvency and Bankruptcy Board of India (Annual Report) Amendment Rules, 2020 substituted Rule 4 and prescribe a timetable linked with audit and submission of the annual report and audited accounts. The timetable includes making approved and authenticated annual accounts available to the concerned Audit Office by 30 June, issue of the final Separate Audit Report with Audit Certificate by 31 October, and submission of the annual report and audited accounts to the Ministry of Corporate Affairs by 31 December for laying before Parliament.
Key legal points
- Who prepares the report: The Insolvency and Bankruptcy Board of India.
- Reporting period: The report gives a full account of the Board's activities during the previous financial year.
- Recipient: A copy is submitted to the Central Government.
- Parliamentary requirement: The report is to be laid before each House of Parliament after receipt by the Central Government.
- Rule-making power: Section 239(2)(zm) empowers the Central Government to prescribe the form and time for preparation of the annual report under Section 229(1).
- Commencement: Sections 227 to 229 of the Code were brought into force with effect from 1 May 2018.
Purpose of the provision
Section 229 supports transparency and institutional accountability by requiring the insolvency regulator to document its work annually. Read with the Annual Report Rules, the provision creates a structured process for reporting the Board's activities and placing the report before Parliament.