Sections 245 to 255: Amendments to Other Acts under the Insolvency and Bankruptcy Code, 2016
Sections 245 to 255 of the Insolvency and Bankruptcy Code, 2016 form a set of consequential amendment provisions. Each section identifies another Central Act and directs that it be amended in the manner specified in the corresponding Schedule to the Code. Together, these provisions integrate the IBC framework with partnership, tax, customs, debt recovery, secured lending, payment systems, limited liability partnership and company laws.
Updated: 30 September 2026.
Sections 245 to 255 at a Glance
| IBC Section | Act referred to in the IBC | Schedule |
|---|---|---|
| 245 | Indian Partnership Act, 1932 | First Schedule |
| 246 | Central Excise Act, 1944 | Second Schedule |
| 247 | Income-tax Act, 1961 | Third Schedule |
| 248 | Customs Act, 1962 | Fourth Schedule |
| 249 | Recovery of Debts Due to Banks and Financial Institutions Act, 1993 | Fifth Schedule |
| 250 | Finance Act, 1994 | Sixth Schedule |
| 251 | Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 | Seventh Schedule |
| 252 | Sick Industrial Companies (Special Provisions) Repeal Act, 2003 | Eighth Schedule |
| 253 | Payment and Settlement Systems Act, 2007 | Ninth Schedule |
| 254 | Limited Liability Partnership Act, 2008 | Tenth Schedule |
| 255 | Companies Act, 2013 | Eleventh Schedule |
Section-wise Provisions
Section 245 - Amendments of Act 9 of 1932
The Indian Partnership Act, 1932 shall be amended in the manner specified in the First Schedule.
The First Schedule contains the consequential amendment made by the IBC to the Indian Partnership Act, 1932.
Section 246 - Amendments of Act 1 of 1944
The Central Excise Act, 1944 shall be amended in the manner specified in the Second Schedule.
This provision connects the IBC with the Central Excise Act through the amendment specified in that Schedule.
Section 247 - Amendments of Act 43 of 1961
The Income-tax Act, 1961 shall be amended in the manner specified in the Third Schedule.
The section is a consequential amendment provision; the precise statutory change is contained in the Third Schedule to the IBC.
Section 248 - Amendments of Act 52 of 1962
The Customs Act, 1962 shall be amended in the manner specified in the Fourth Schedule.
The Fourth Schedule therefore contains the IBC-related consequential amendment to the Customs Act.
Section 249 - Amendments of Act 51 of 1993
The Recovery of Debts Due to Banks and Financial Institutions Act, 1993 shall be amended in the manner specified in the Fifth Schedule.
The enactment referred to in Section 249 is now commonly reflected in current law under its renamed title, the Recovery of Debts and Bankruptcy Act, 1993. The wording above preserves the title used in the enacted IBC provision.
Section 250 - Amendments of Act 32 of 1994
The Finance Act, 1994 shall be amended in the manner specified in the Sixth Schedule.
The provision directs the consequential amendment through the Sixth Schedule.
Section 251 - Amendments of Act 54 of 2002
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 shall be amended in the manner specified in the Seventh Schedule.
This Act is commonly referred to as the SARFAESI Act, 2002. Section 251 was brought into force on 15 November 2016.
Section 252 - Amendments of Act 1 of 2004
The Sick Industrial Companies (Special Provisions) Repeal Act, 2003 shall be amended in the manner specified in the Eighth Schedule.
The Eighth Schedule addresses transition from the earlier Sick Industrial Companies framework to the insolvency regime established under the IBC.
Section 253 - Amendments of Act 51 of 2007
The Payment and Settlement Systems Act, 2007 shall be amended in the manner specified in the Ninth Schedule.
Section 253 was brought into force on 15 November 2016.
Section 254 - Amendments of Act 6 of 2009
The Limited Liability Partnership Act, 2008 shall be amended in the manner specified in the Tenth Schedule.
Section 254 was brought into force on 15 November 2016 and provides the statutory link for the IBC consequential amendment to the LLP Act.
Section 255 - Amendments of Act 18 of 2013
The Companies Act, 2013 shall be amended in the manner specified in the Eleventh Schedule.
Section 255 was brought into force on 15 November 2016. The Eleventh Schedule made extensive consequential changes to the Companies Act, 2013 to align company-law provisions with the insolvency framework under the IBC.
Meaning of Consequential Amendments
A consequential amendment is an amendment made to another enactment because a new law changes the legal framework in which that enactment operates. Sections 245 to 255 do not create eleven independent insolvency procedures. Instead, they direct amendments to existing Central Acts so those laws can operate consistently with the Insolvency and Bankruptcy Code.
Why the First to Eleventh Schedules Matter
The wording of Sections 245 to 255 identifies the affected enactment but does not itself reproduce the detailed amendment. The operative amendment is found in the corresponding Schedule. A complete legal reading therefore requires the relevant section to be read with its Schedule and, for present-day application, with the current consolidated text of the affected Act.
Practical Reading Guide
- Identify the relevant IBC section from Sections 245 to 255.
- Read the corresponding First to Eleventh Schedule for the actual amendment made by the IBC.
- Check the commencement notification applicable to that IBC provision.
- Check the current version of the affected parent Act for later amendments, substitutions or renumbering.
- For insolvency practice, also verify current IBBI rules, regulations, notifications and circulars where relevant.
Official Legal Resources
IBBI - Insolvency and Bankruptcy Code and Amendment Acts
IBBI - Notifications under the Insolvency and Bankruptcy Code
India Code - Central Acts and Current Statutory Text