Section 230 Delegation - Insolvency and Bankruptcy Code 2016
Section 230 empowers the Insolvency and Bankruptcy Board of India to delegate specified powers and functions under the Code to a member or officer of the Board through a general or special written order, subject to stated conditions. The power to make regulations under Section 240 is excluded from delegation.
Text of Section 230 - Delegation
The Board may, by general or special order in writing, delegate to any member or officer of the Board, subject to such conditions, if any, as may be specified in the order, such of its powers and functions under this Code, except the powers under Section 240, as it may deem necessary.
Meaning of Section 230
Section 230 is an administrative delegation provision in Part IV of the Insolvency and Bankruptcy Code, 2016. It allows the Insolvency and Bankruptcy Board of India, referred to in the Code as the "Board", to distribute specified statutory powers and functions among its members and officers so that the Board can carry out its regulatory and administrative responsibilities through authorised functionaries.
The "Board" is the Insolvency and Bankruptcy Board of India established under Section 188 of the Code. Section 230 does not permit an unrestricted transfer of authority. A valid delegation under the provision must be made by a general or special order in writing, may be made only to a member or officer of the Board, and remains subject to any conditions stated in the delegation order.
Essential requirements for delegation
- Written order: The delegation must be made by a general or special order in writing.
- Eligible delegate: The power or function may be delegated to a member or officer of the IBBI.
- Conditions: The Board may impose conditions in the delegation order.
- Specified powers and functions: The Board may delegate such powers and functions under the Code as it considers necessary.
- Section 240 exception: The Board cannot delegate its statutory power under Section 240 to make regulations.
General order and special order
A general order may allocate categories of powers and functions across designated members or officers as part of the Board's continuing administrative structure. A special order may be used where authority is delegated for a particular function, matter or circumstance. In either case, Section 230 expressly requires the delegation to be in writing.
Why Section 240 powers cannot be delegated
Section 240 - Power to make regulations
Section 240 empowers the IBBI to make regulations, by notification, consistent with the Insolvency and Bankruptcy Code and the rules made under it, for carrying out the provisions of the Code. Section 230 expressly excludes these regulation-making powers from delegation. Consequently, the Board's statutory regulation-making function must remain with the Board rather than being delegated under Section 230 to an individual member or officer.
IBBI Delegation of Powers and Functions Order
The IBBI has used Section 230 to establish a formal delegation framework. The Insolvency and Bankruptcy Board of India (Delegation of Powers and Functions) Order, 2017 allocates specified powers and functions to designated functionaries of the Board. The delegation framework has been amended from time to time to reflect the Board's organisational and regulatory requirements.
Section 191 and administrative supervision
Section 191 separately provides that, save as otherwise determined by regulations, the Chairperson has powers of general superintendence and direction of the affairs of the Board and may exercise other powers delegated to the Chairperson by the Board. Section 230 is broader in the sense that it expressly authorises written delegation of the Board's powers and functions to any member or officer, subject to the statutory exception for Section 240.
Commencement of Section 230
Section 230 was brought into force with effect from 19 August 2016. It therefore forms part of the institutional framework governing the functioning of the IBBI from the early implementation of the Insolvency and Bankruptcy Code.