Section 232 of the Insolvency and Bankruptcy Code, 2016: IBBI Members, Officers and Employees as Public Servants
Section 232 of the Insolvency and Bankruptcy Code, 2016 gives public servant status to the Chairperson, Members, officers and other employees of the Insolvency and Bankruptcy Board of India when they act, or purport to act, under the Code.
Text of Section 232 of the Insolvency and Bankruptcy Code, 2016
The Chairperson, Members, officers and other employees of the Board shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this Code, to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860).
Meaning and scope of Section 232
Section 232 is a deeming provision. It treats specified persons connected with the Insolvency and Bankruptcy Board of India, commonly referred to as the IBBI or the Board, as public servants while they are acting or purporting to act in pursuance of the Insolvency and Bankruptcy Code, 2016.
The provision covers the Chairperson, Members, officers and other employees of the Board. The statutory status is linked to the performance, or purported performance, of functions under the Code. Section 232 therefore connects the official functions of these persons with the legal status attached to a public servant.
- The provision applies to the Chairperson, Members, officers and other employees of the IBBI.
- The deeming status operates when the person is acting or purporting to act under the Insolvency and Bankruptcy Code, 2016.
- The enacted text of Section 232 expressly refers to the meaning of "public servant" in Section 21 of the Indian Penal Code, 1860.
What is a "public servant"?
Section 232 itself does not reproduce the full definition of a public servant. Instead, its enacted wording incorporates the meaning assigned by Section 21 of the Indian Penal Code, 1860. Section 21 IPC contained an inclusive statutory description covering specified categories of persons performing public, judicial, governmental and other legally recognised public functions.
The Bharatiya Nyaya Sanhita, 2023 came into force on 1 July 2024 and replaced the Indian Penal Code, 1860 as the general substantive criminal law for offences governed by the new enactment. Clause (28) of Section 2 of the Bharatiya Nyaya Sanhita, 2023 now contains the BNS definition of "public servant". However, the text of Section 232 of the Insolvency and Bankruptcy Code continues to expressly refer to Section 21 of the Indian Penal Code. The statutory text should therefore be read as enacted, together with applicable repeal, savings, amendment and interpretation provisions when a question arises under current criminal law.
The reference to Section 21 IPC appearing in Section 232 should not be silently substituted in the bare text. For current proceedings, the effect of the transition from the IPC to the Bharatiya Nyaya Sanhita must be determined under the applicable statutory provisions and the facts of the case.
Why Section 232 is important
The IBBI exercises statutory regulatory and supervisory functions under the Insolvency and Bankruptcy Code. By expressly treating the Board's Chairperson, Members, officers and employees as public servants for acts done or purported to be done under the Code, Section 232 identifies their official character for the purposes contemplated by law.
Section 232 should also be read in its statutory setting. It follows Section 231, which deals with bar of jurisdiction, and precedes Section 233, which provides protection for action taken in good faith. These provisions form part of the miscellaneous provisions of the Code.
Official legal resources
For the latest statutory and regulatory position, readers should verify the current text and amendments from official Government of India sources.
Related provisions of the Insolvency and Bankruptcy Code
Readers examining Section 232 may also refer to Section 231 - Bar of jurisdiction, Section 233 - Protection of action taken in good faith, Section 236 - Trial of offences by Special Court, Section 238 - Provisions of this Code to override other laws, Section 239 - Power to make rules and Section 240 - Power to make regulations.
Updated for the legal position reviewed on 30 September 2026. Readers should verify subsequent amendments, notifications and judicial decisions from official sources.