Section 236 of Insolvency and Bankruptcy Code 2016: Trial of Offences by Special Court

Section 236 of the Insolvency and Bankruptcy Code, 2016 (IBC) deals with the court competent to try offences under the Code, the persons or authorities who may institute a complaint, and the criminal procedure applicable before the Special Court.

Text of Section 236 - Trial of offences by Special Court

(1) Notwithstanding anything in the Code of Criminal Procedure, 1973, offences under this Code shall be tried by the Special Court established under Chapter XXVIII of the Companies Act, 2013.

(2) No Court shall take cognizance of any offence punishable under this Act, save on a complaint made by the Board or the Central Government or any person authorised by the Central Government in this behalf.

(3) The provisions of the Code of Criminal Procedure, 1973 shall apply to the proceedings before a Special Court and for the purposes of the said provisions, the Special Court shall be deemed to be a Court of Session and the person conducting a prosecution before a Special Court shall be deemed to be a Public Prosecutor.

(4) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, in case of a complaint under sub-section (2), the presence of the person authorised by the Central Government or the Board before the Court trying the offences shall not be necessary unless the Court requires his personal attendance at the trial.

Meaning and scope of Section 236

Section 236 creates the procedural framework for prosecution of offences punishable under the IBC. It does not itself create every substantive offence or prescribe the punishment for each contravention. Instead, it identifies the Special Court that will try IBC offences and specifies the conditions governing cognizance and prosecution.

Special Court under the Companies Act 2013

Under sub-section (1), offences under the IBC are triable by a Special Court established under Chapter XXVIII of the Companies Act, 2013. Chapter XXVIII of that Act contains provisions relating to Special Courts constituted for speedy trial of specified offences. Section 236 therefore connects prosecution under the IBC with the Special Court framework under the Companies Act.

Cognizance only on an authorised complaint

Sub-section (2) restricts the manner in which a court may take cognizance of an offence punishable under the IBC. Cognizance may be taken on a complaint made by the Insolvency and Bankruptcy Board of India, the Central Government, or a person authorised by the Central Government for this purpose. This requirement is important because an IBC prosecution must satisfy the statutory condition concerning the person or authority competent to make the complaint.

Criminal procedure before the Special Court

Sub-section (3) provides that the criminal procedure specified in Section 236 applies to proceedings before the Special Court. For that purpose, the Special Court is deemed to be a Court of Session and the person conducting the prosecution is deemed to be a Public Prosecutor.

Current-law note: Section 236 continues to contain references to the Code of Criminal Procedure, 1973 in the statutory text. The Bharatiya Nagarik Suraksha Sanhita, 2023 came into force on 1 July 2024 and repealed the Code of Criminal Procedure, 1973 subject to its savings and transitional provisions. The applicable procedural law in a particular prosecution should therefore be determined with reference to the commencement and savings provisions and the facts of the proceeding.

Personal attendance of complainant not ordinarily required

Sub-section (4) provides that, for a complaint contemplated by sub-section (2), the presence of the person authorised by the Central Government or the Board is not necessary before the court trying the offence unless the court requires that person's personal attendance at the trial.

Key requirements under Section 236

Offences under the IBC are tried by the Special Court referred to in Section 236(1).
Cognizance is subject to a complaint by the Board, the Central Government, or a person authorised by the Central Government.
The Special Court is treated as a Court of Session for the procedural purposes specified in Section 236(3).
The person conducting the prosecution is treated as a Public Prosecutor for those purposes.
The authorised complainant or the Board need not remain personally present unless the court directs personal attendance.

Related provisions

Section 236 should be read with Section 237 on appeal and revision and Section 238 on the overriding effect of the IBC. The substantive offence and punishment provisions elsewhere in the Code must also be examined to determine the ingredients and consequences of the particular offence alleged.

Official legal resources

For the current statutory framework and amendments, readers should verify the law from the India Code - Insolvency and Bankruptcy Code, 2016 and the Insolvency and Bankruptcy Board of India - Acts and amendments.

Updated for the legal position available as on 30 September 2026. Statutory text and procedural applicability should be verified from the latest official notification and amendment applicable to the particular proceeding.