224. Insolvency and Bankruptcy Fund.—(1) There shall be formed a Fund to be called the
Insolvency and Bankruptcy Fund (hereafter in this section referred to as the “Fund”) for the purposes of
insolvency resolution, liquidation and bankruptcy of persons under the Code.
(2) There shall be credited to the Fund the following amounts, namely—
(a) the grants made by the Central Government for the purposes of the Fund;
(b) the amount deposited by persons as contribution to the Fund;
(c) the amount received in the Fund from any other source; and
(d) the interest or other income received out of the investment made from the Fund.
(3) A person who has contributed any amount to the Fund may, in the event of proceedings initiated
in respect of such person under this Code before an Adjudicating Authority, make an application to such
Adjudicating Authority for withdrawal of funds not exceeding the amount contributed by it, for making
payments to workmen, protecting the assets of such persons, meeting the incidental costs during the
proceedings or such other purposes as may be prescribed.
(4) The Central Government shall, by notification, appoint an administrator to administer the fund in
such manner as may be prescribed.
225. Power of Central Government to issue directions.—(1) Without prejudice to the foregoing
provisions of this Code, the Board shall, in exercise of its powers or the performance of its functions
under this Code, be bound by such directions on questions of policy as the Central Government may give
in writing to it from time to time:
Provided that the Board shall, as far as practicable, be given an opportunity to express its views
before any direction is given under this sub-section.
(2) The decision of the Central Government as to whether a question is one of policy or not shall be
final.
226. Power of Central Government to supersede Board.—(1) If at any time the Central
Government is of opinion—
(a) that on account of grave emergency, the Board is unable to discharge the functions and duties
imposed on it by or under the provisions of this Code; or
(b) that the Board has persistently not complied with any direction issued by the Central
Government under this Code or in the discharge of the functions and duties imposed on it by or under
127
the provisions of this Code and as a result of such noncompliance the financial position of the Board
or the administration of the Board has deteriorated; or
(c) that circumstances exist which render it necessary in the public interest so to do,
the Central Government may, by notification, supersede the Board for such period, not exceeding six
months, as may be specified in the notification.
(2) Upon the publication of a notification under sub-section (1) superseding the Board,—
(a) all the members shall, as from the date of supersession, vacate their offices as such;
(b) all the powers, functions and duties which may, by or under the provisions of this Code, be
exercised or discharged by or on behalf of the Board, shall until the Board is reconstituted under
sub-section (3), be exercised and discharged by such person or persons as the Central Government
may direct; and
(c) all property owned or controlled by the Board shall, until the Board is reconstituted under
sub-section (3), vest in the Central Government.
(3) On the expiration of the period of supersession specified in the notification issued under
sub-section (1), the Central Government may reconstitute the Board by a fresh appointment and in such
case any person or persons who vacated their offices under clause (a) of sub-section (2), shall not be
deemed disqualified for appointment:
Provided that the Central Government may, at any time, before the expiration of the period of
supersession, take action under this sub-section.
(4) The Central Government shall cause a notification issued under sub-section (1) and a full report of
any action taken under this section and the circumstances leading to such action to be laid before each
House of Parliament at the earliest.
227. Power of Central Government to notify financial service providers, etc.—Notwithstanding
anything to the contrary 1
[contained in this Code] or any other law for the time being in force, the Central
Government may, if it considers necessary, in consultation with the appropriate financial sector
regulators, notify financial service providers or categories of financial service providers for the purpose of
their insolvency and liquidation proceedings, which may be conducted under this Code, in such manner as
may be prescribed.
2
[Explanation.—For the removal of doubts, it is hereby clarified that the insolvency and liquidation
proceedings for financial service providers or categories of financial service providers may be conducted
with such modifications and in such manner as may be prescribed.]
228. Budget.—The Board shall prepare, in such form and at such time in each financial year as may
be prescribed, its budget for the next financial year, showing the estimated receipts and expenditure of the
Board and forward the same to the Central Government.
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.
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.
1. Subs. by Act 1 of 2020, s. 11, for “examined in this Code” (w.e.f. 28-12-2019).
2. Ins. by Act 1 of 2020, s. 11 (w.e.f.28-12-2019).
128
231. Bar of jurisdiction.—No civil court shall have jurisdiction in respect of any matter in which the
1
[Adjudicating Authority or Board] is empowered by, or under, this Code to pass any order and no
injunction shall be granted by any court or other authority in respect of any action taken or to be taken in
pursuance of any order passed by such 2
[Adjudicating Authority or Board] under this Code.
232. Members, officers and employees of Board to the public servants.—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).
233. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall
lie against the Government or any officer of the Government, or the Chairperson, Member, officer or
other employee of the Board or an insolvency professional or liquidator for anything which is in done or
intended to be done in good faith under this Code or the rules or regulations made thereunder.
234. Agreements with foreign countries.—(1) The Central Government may enter into an
agreement with the Government of any country outside India for enforcing the provisions of this Code.
(2) The Central Government may, by notification in the Official Gazette, direct that the application of
provisions of this Code in relation to assets or property of corporate debtor or debtor, including a personal
guarantor of a corporate debtor, as the case may be, situated at any place in a country outside India with
which reciprocal arrangements have been made, shall be subject to such conditions as may be specified.
235. Letter of request to a country outside India in certain cases.—(1) Notwithstanding anything
contained in this Code or any law for the time being in force if, in the course of insolvency resolution
process, or liquidation or bankruptcy proceedings, as the case may be, under this Code, the resolution
professional, liquidator or bankruptcy trustee, as the case may be, is of the opinion that assets of the
corporate debtor or debtor, including a personal guarantor of a corporate debtor, are situated in a country
outside India with which reciprocal arrangements have been made under section 234, he may make an
application to the Adjudicating Authority that evidence or action relating to such assets is required in
connection with such process or proceeding.
(2) The Adjudicating Authority on receipt of an application under sub-section (1) and, on being
satisfied that evidence or action relating to assets under sub-section (1) is required in connection with
insolvency resolution process or liquidation or bankruptcy proceeding, may issue a letter of request to a
court or an authority of such country competent to deal with such request.
2
[235A. Punishment where no specific penalty or punishment is provided.—If any person
contravenes any of the provisions of this Code or the rules or regulations made thereunder for which no
penalty or punishment is provided in this Code, such person shall be punishable with fine which shall not
be less than one lakh rupees but which may extend to two crore rupees.]
236. Trial of offences by Special Court.—(1) Notwithstanding anything in the Code of Criminal
Procedure, 1973 (2 of 1974), offences under this Code shall be tried by the Special Court established
under Chapter XXVIII of the Companies Act, 2013 (18 of 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 (2 of 1974) shall apply to the
proceedings before a Special Court and for the purposes of the said provisions, the Special Court shall be
1. Subs. by Act 26 of 2018, s. 33, for “Adjudicating Authority” (w.e.f. 6-6-2018).
2. Ins. by Act 8 of 2018, s. 8 (w.e.f. 23-11-2017).
129
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.
237. Appeal and revision.—The High Court may exercise, so far as may be applicable, all the
powers conferred by Chapters XXIX and XXX of the Code of Criminal Procedure, 1973 (2 of 1974) on a
High Court, as if a Special Court within the local limits of the jurisdiction of the High Court were a Court
of Session trying cases within the local limits of the jurisdiction of the High Court.
238. Provisions of this Code to override other laws.—The provisions of this Code shall have effect,
notwithstanding anything inconsistent therewith contained in any other law for the time being in force or
any instrument having effect by virtue of any such law.
1
[238A. Limitation.—The provisions of the Limitation Act, 1963 shall, as far as may be, apply to the
proceedings or appeals before the Adjudicating Authority, the National Company Law Appellate
Tribunal, the Debt Recovery Tribunal or the Debt Recovery Appellate Tribunal, as the case may be.]
239. Power to make rules.—(1) The Central Government may, by notification, make rules for
carrying out the provisions of this Code.
(2) Without prejudice to the generality of the provisions of sub-section (1), the Central Government
may make rules for any of the following matters, namely:—
(a) any other instrument which shall be a financial product under clause (15) of section 3;
(b) other accounting standards which shall be a financial debt under clause (d) of sub-section (8)
of section 5;
(c) the form, the manner and the fee for making application before the Adjudicating Authority for
initiating corporate insolvency resolution process by financial creditor under sub-section (2) of
section 7;
(d) the form and manner in which demand notice may be made and the manner of delivery
thereof to the corporate debtor under sub-section (1) of section 8;
(e) the form, the manner and the fee for making application before the Adjudicating Authority for
initiating corporate insolvency resolution process by operational creditor under sub-section (2) of
section 9;
2
[(ea) other proof confirming that there is no payment of an unpaid operational debt by the
corporate debtor or such other information under clause (e) of sub-section (3) of section 9;]
(f) the form, the manner and the fee for making application before the Adjudicating Authority for
initiating corporate insolvency resolution process by corporate applicant under sub-section (2) of
section 10;
3
[(fa) the transactions under the second proviso to sub-section (2) of section 21;
(fb) the transactions under Explanation I to clause (c) of section 29A;
(fc) the transactions under the second proviso to clause (j) of section 29A;]
1. Ins. by Act 26 of 2018, s. 34 (w.e.f. 6-6-2018).
2. Ins. by Act 26 of 2018, s. 35 (w.e.f. 6-6-2018).
3. Ins. by Act 1 of 2020, s. 12 (w.e.f. 28-12-2019).
130
1
[(fd) the form, particulars, manner and fee for making application before the Adjudicating
Authority under sub-section (2) of section 54C;
(fe) the conditions and restrictions with which the promoters, members, personnel and partners of
the corporate debtor shall exercise and discharge contractual or statutory rights and obligations under
clause (c) of section 54H;]
(g) the persons who shall be relative under clause (ii) of the Explanation to sub-section (1) of
section 79;
(h) the value of unencumbered single dwelling unit owned by the debtor under clause (e) of
sub-section (13) of section 79;
(i) the value under clause (c), and any other debt under clause (f), of sub-section (14) of
section 79;
(j) the form, the manner and the fee for making application for fresh start order under
sub-section (3) of section 81;
(k) the particulars of the debtor’s personal details under clause (e) of sub-section (3) of section 81;
(l) the information and documents to support application under sub-section (3) of section 86;
(m) the form, the manner and the fee for making application for initiating the insolvency
resolution process by the debtor under sub-section (6) of section 94;
(n) the form, the manner and the fee for making application for initiating the insolvency
resolution process by the creditor under sub-section (6) of section 95;
(o) the particulars to be provided by the creditor to the resolution professional under
sub-section (2) of section 103;
(p) the form and the manner for making application for bankruptcy by the debtor under clause (b)
of sub-section (1) of section 122;
(q) the form and the manner of the statement of affairs of the debtor under sub-section (3) of
section 122;
(r) the other information under clause (d) of sub-section (1) of section 123;
(s) the form, the manner and the fee for making application for bankruptcy under sub-section (6)
of section 123;
(t) the form and the manner in which statement of financial position shall be submitted under
sub-section (2) of section 129;
(u) the matters and the details which shall be included in the public notice under sub-section (2)
of section 130;
(v) the matters and the details which shall be included in the notice to the creditors under
sub-section (3) of section 130;
(w) the manner of sending details of the claims to the bankruptcy trustee and other information
under sub-sections (1) and (2) of section 131;
(x) the value of financial or commercial transaction under clause (d) of sub-section (1) of
section 141;
1. Ins. by Act 26 of 2021, s. 15 (w.e.f. 4-4-2021).
131
(y) the other things to be done by a bankrupt to assist bankruptcy trustee in carrying out his
functions under clause (d) of sub-section (1) of section 150;
(z) the manner of dealing with the surplus under sub-section (4) of section 170;
(za) the form and the manner of proof of debt under clause (c) of sub-section (2) of section 171;
(zb) the manner of receiving dividends under sub-section (7) of section 171;
(zc) the particulars which the notice shall contain under sub-section (2) of section 176;
(zd) the salaries and allowances payable to, and other terms and conditions of service of, the
Chairperson and members of the Board under sub-section (5) of section 189;
(ze) the other functions of the Board under clause (u) of sub-section (1) of section 196;
(zf) the other funds under clause (c) of sub-section (1) of section 222;
(zg) the other purposes for which the fund shall be applied under clause (d) of sub-section (2) of
section 222;
(zh) the form in which annual statement of accounts shall be prepared under sub-section (1) of
section 223;
(zi) the purpose for which application for withdrawal of funds may be made under sub-section (3)
of section 224;
(zj) the manner of administering the fund under sub-section (4) of section 224;
(zk) the manner of conducting insolvency and liquidation proceedings under section 227;
(zl) the form and the time for preparing budget by the Board under section 228;
(zm) the form and the time for preparing annual report under sub-section (1) of section 229;
(zn) the time up to which a person appointed to any office shall continue to hold such office under
clause (vi) of sub-section (2) of section 243.
240. Power to make regulations.—(1) The Board may, by notification, make regulations consistent
with this Code and the rules made thereunder, to carry out the provisions of this Code.
(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may
provide for all or any of the following matters, namely:—
(a) the form and the manner of accepting electronic submission of financial information under
sub-clause (a) of clause (9) of section 3;
(b) the persons to whom access to information stored with the information utility may be
provided under sub-clause (d) of clause (9) of section 3;
(c) the other information under sub-clause (f) of clause (13) of section 3;
(d) the other costs under clause (e) of sub-section (13) of section 5;
(e) the cost incurred by the liquidator during the period of liquidation which shall be liquidation
cost under sub-section (16) of section 5;
1
[(ea) the other costs under sub-clause (e) of clause (23C) of section 5;]
(f) the other record or evidence of default under clause (a), and any other information under
clause (c), of sub-section (3) of section 7;
1. Ins. by Act 26 of 2021, s. 16 (w.e.f. 4-4-2021).
132
1* * * * *
(h) the period under clause (a) of sub-section (3) of section 10;
(i) the supply of essential goods or services to the corporate debtor under sub-section (2) of
section 14;
2
[(ia) circumstances in which supply of critical goods or services may be terminated, suspended
or interrupted during the period of moratorium under sub-section (2A) of section 14;]
(j) the manner of making public announcement under sub-section (2) of section 15;
3
[(ja) the last date for submission of claims under clause (c) of sub-section (1) of section 15;]
(k) the manner of taking action and the restrictions thereof under clause (b) of sub-section (2) of
section 17;
(l) the other persons under clause (d) of sub-section (2) of section 17;
(m) the other matters under clause (d) of sub-section (2) of section 17;
(n) the other matters under sub-clause (iv) of clause (a), and the other duties to be performed by
the interim resolution professional under clause (g), of section 18;
3
[(na) the number of creditors within a class of creditors under clause (b) of sub-section (6A) of
section 21;
(nb) the remuneration payable to authorised representative under clause (ii) of the proviso to
sub-section (6B) of section 21;
(nc) the manner of voting and determining the voting share in respect of financial debts under
sub-section (7) of section 21;]
(o) the persons who shall comprise the committee of creditors, the functions to be exercised such
committee and the manner in which functions shall be exercised under the proviso to sub-section (8)
of section 21;
(p) the other electronic means by which the members of the committee of creditors may meet
under sub-section (1) of section 24;
(q) the manner of assigning voting share to each creditor under sub-section (7) of section 24;
(r) the manner of conducting the meetings of the committee of creditors under sub-section (8) of
section 24;
(s) the manner of appointing accountants, lawyers and other advisors under clause (d) of
sub-section (2) of section 25;
4
[(sa) other conditions under clause (h) of sub-section (2) of section 25;]
(t) the other actions under clause (k) of sub-section (2) of section 25;
(u) the form and the manner in which an information memorandum shall be prepared by the
resolution professional sub-section (1) of section 29;
(v) the other matter pertaining to the corporate debtor under the Explanation to sub-section (2) of
section 29;
1. Clause (g) omitted by Act 26 of 2018, s. 36 (w.e.f. 6-6-2018).
2. Ins. by Act 1 of 2020, s. 13 (w.e.f. 28-12-2019).
3. Ins.by Act 26 of 2018, s. 36 (w.e.f. 6-6-2018).
4. Ins. by Act 8 of 2018, s. 9 (w.e.f 23-11-2017).
133
(w) the manner of making payment of insolvency resolution process costs under clause (a), the
manner of 1
[payment of debts] under clause (b), and the other requirements to which a resolution plan
shall conform to under clause (d), of sub-section (2) of section 30;
2
[(wa) other requirements under sub-section (4) of section 30;].
(x) the fee for the conduct of the liquidation proceedings and proportion to the value of the
liquidation estate assets under sub-section (8) of section 34;
(y) the manner of evaluating the assets and property of the corporate debtor under clause (c), the
manner of selling property in parcels under clause (f), the manner of reporting progress of the
liquidation process under clause (n), and the other functions to be performed under clause (o), of
sub-section (1) of section 35;
(z) the manner of making the records available to other stakeholders under sub-section (2) of
section 35;
(za) the other means under clause (a) of sub-section (3) of section 36;
(zb) the other assets under clause (e) of sub-section (4) of section 36;
(zc) the other source under clause (g) of sub-section (1) of section 37;
(zd) the manner of providing financial information relating to the corporate debtor under
sub-section (2) of section 37;
(ze) the form, the manner and the supporting documents to be submitted by operational creditor to
prove the claim under sub-section (3) of section 38;
(zf) the time within which the liquidator shall verify the claims under sub-section (1) of
section 39;
(zg) the manner of determining the value of claims under section 41;
(zh) the manner of relinquishing security interest to the liquidation estate and receiving proceeds
from the sale of assets by the liquidator under clause (a), and the manner of realising security interest
under clause (b) of sub-section (1) of section 52;
(zi) the other means under clause (b) of sub-section (3) of section 52;
(zj) the manner in which secured creditor shall be paid by the liquidator under sub-section (9) of
section 52;
(zk) the period and the manner of distribution of proceeds of sale under sub-section (1) of
section 53;
3
[(zka) such number of financial creditors and the manner of proposing the insolvency
professional, and the form for approving such insolvency professional by the financial creditors under
clause (e), the persons who shall provide approval under the proviso to clause (e), the form for
making a declaration under clause (f) of sub-section (2) of section 54A;
(zkb) the form for obtaining approval from financial creditors under sub-section (3), and the
persons who shall provide approval under the proviso to sub-section (3) of section 54A;
1. Subs. by Act 26 of 2019, s. 9, for “repayment of debts of operational creditors” (w.e.f. 16-08-2019).
2. Ins. by Act 8 of 2018, s. 9 (w.e.f. 23-11-2017).
3. Ins. by Act 26 of 2021, s. 16 (w.e.f. 4-4-2021).
134
(zkc) the other conditions for the base resolution plan under clause (c), and such information and
documents under clause (d) of sub-section (4) of section 54A;
(zkd) the form in which the report is to be prepared under clause (a), such reports and other
documents under clause (b), and such other duties under clause (c) of sub-section (1), and the manner
of determining and bearing the fees in sub-section (3) of section 54B;
(zke) the form for providing written consent of the insolvency professional under clause (b), the
form for declaration under clause (c), the information relating to books of account and such other
documents relating to such period under clause (d) of sub-section (3) of section 54C;
(zkf) the form and manner for making application for termination of the pre-packaged insolvency
resolution process under sub-section (3) of section 54D;
(zkg) the form and manner of making public announcement under clause (c) of sub-section (1) of
section 54E;
(zkh) the manner of confirming the list of claims under clause (a), the manner of informing
creditors under clause (b), the manner of maintaining an updated list of claims under clause (c), the
form and manner of preparing the information memorandum under clause (g), and such other duties
under clause (i) of sub-section (2) of section 54F;
(zki) such other persons under clause (c), the manner of appointing accountants, legal or other
professionals under clause (e), such other matters under sub-clause (iv) of clause (f) and the manner of
taking other actions under clause (g) of sub-section (3) of section 54F;
(zkj) the manner of determination of fees and expenses as may be incurred by the resolution
professional under sub-section (6) of section 54F;
(zkk) the manner of bearing fees and expenses under sub-section (7) of section 54F;
(zkl) the form and manner of list of claims and preliminary information memorandum under
sub-section (1) of section 54G;
(zkm) the conditions under clause (a) of section 54H;
(zkn) the manner of alteration of the composition of the committee of creditors under the proviso
to sub-section (1) of section 54-I;
(zko) the form and manner of making application under sub-section (1) of section 54J;
(zkp) the manner of inviting prospective resolution applicants under sub-section (5) of
section 54K;
(zkq) the other conditions under sub-section (6) of section 54K;
(zkr) the conditions under clause (a) and the manner of providing the basis for evaluation of
resolution plans and the information referred to in section 29 under sub-section (7) of section 54K;
(zks) the conditions under the proviso to sub-section (10) of section 54K;
(zkt) the manner and conditions under sub-section (11) of section 54K;
(zku) the form and manner of filing application under the proviso to sub-section (12) of
section 54K;
135
(zkv) the other requirements under sub-section (13) of section 54K;
(zkw) the form for submission of written consent under clause (b) of sub-section (2) of section
54-O;]
(zl) the other means under clause (a) and the other information under clause (b) of section 57;
(zm) the conditions and procedural requirements under sub-section (2) of section 59;
(zn) the details and the documents required to be submitted under sub-section (7) of section 95;
(zo) the other matters under clause (c) of sub-section (3) of section 105;
(zp) the manner and form of proxy voting under sub-section (4) of section 107;
(zq) the manner of assigning voting share to creditor under sub-section (2) of section 109;
(zr) the manner and form of proxy voting under sub-section (3) of section 133;
(zs) the fee to be charged under sub-section (1) of section 144;
(zt) the appointment of other officers and employees under sub-section (2), and the salaries and
allowances payable to, and other terms and conditions of service of, such officers and employees of
the Board under sub-section (3), of section 194;
(zu) the other information under clause (i) of sub-section (1) of section 196;
(zv) the intervals in which the periodic study, research and audit of the functioning and
performance of the insolvency professional agencies, insolvency professionals and information
utilities under clause (r), and mechanism for disposal of assets under clause (t), of sub-section (1) of
section 196;
(zw) the place and the time for discovery and production of books of account and other
documents under clause (i) of sub-section (3) of section 196;
(zx) the other committees to be constituted by the Board and the other members of such
committees under section 197;
(zy) the other persons under clause (b) and clause (d) of section 200;
(zz) the form and the manner of application for registration, the particulars to be contained therein
and the fee it shall accompany under sub-section (1) of section 201;
(zza) the form and manner of issuing a certificate of registration and the terms and conditions
thereof, under sub-section (3) of section 201;
(zzb) the manner of renewal of the certificate of registration and the fee therefor, under
sub-section (4) of section 201;
(zzc) the other ground under clause (d) of sub-section (5) of section 201;
(zzd) the form of appeal to the National Company Law Appellate Tribunal, the period within
which it shall be filed under section 202;
(zze) the other information under clause (g) of section 204;
(zzf) the other grounds under Explanation to section 196;
(zzg) the setting up of a governing board for its internal governance and management under
clause (e), the curriculum under clause (l), the manner of conducting examination under clause (m) ,
of section 196;
136
(zzh) the time within which, the manner in which, and the fee for registration of insolvency
professional under sub-section (1) of section 207;
(zzi) the categories of professionals or persons, the qualifications and experience and the fields
under sub-section (2) of section 207;
(zzj) the manner and the conditions subject to which the insolvency professional shall perform his
function under clause (f) of sub-section (2) of section 208;
(zzk) the form and manner in which, and the fee for registration of information utility under
sub-section (1) of section 210;
(zzl) the form and manner for issuing certificate of registration and the terms and conditions
thereof, under sub-section (3) of section 210;
(zzm) the manner of renewal of the certificate of registration and the fee therefor, under
sub-section (4) of section 210;
(zzn) the other ground under clause (d) of sub-section (5) of section 210;
(zzo) the form, the period and the manner of filing appeal to the National Company Law
Appellate Tribunal under section 211;
(zzp) the number of independent members under section 212;
(zzq) the services to be provided by information utility and the terms and conditions under
section 213;
(zzr) the form and manner of accepting electronic submissions of financial information under
clause (b) and clause (c) of section 214;
(zzs) the minimum service quality standards under clause (d) of section 214;
(zzt) the information to be accessed and the manner of accessing such information under clause (f)
of section 214;
(zzu) the statistical information to be published under clause (g) of section 214;
(zzv) the form, the fee and the manner for submitting or accessing information under sub-section
(1) of section 215;
(zzw) the form and manner for submitting financial information and information relating to assets
under sub-section (2) of section 215;
(zzx) the manner and the time within which financial information may be updated or modified or
rectified under section 216;
(zzy) the form, manner and time of filing complaint under section 217;
(zzz) the time and manner of carrying out inspection or investigation under sub-section (2) of
section 218;
(zzza) the manner of carrying out inspection of insolvency professional agency or insolvency
professional or information utility and the time for giving reply under section 219;
(zzzb) the procedure for claiming restitution under sub-section (6), the period within which such
restitution may be claimed and the manner in which restitution of amount may be made under
sub-section (7) of section 220;
(zzzc) the other funds of clause (c) of sub-section (1) of section 222.
1
[240A. Application of this Code to micro, small and medium enterprises.—(1) Notwithstanding
anything to the contrary contained in this Code, the provisions of clauses (c) and (h) of section 29A shall
not apply to the resolution applicant in respect of corporate insolvency resolution process 2
[or prepackaged insolvency resolution process] of any micro, small and medium enterprises.
1. Ins. by Act 26 of 2018, s. 37 (w.e.f. 6-6-2018).
2. Ins. by Act 26 of 2021, s. 17 (w.e.f. 4-4-2021).
137
(2) Subject to sub-section (1), the Central Government may, in the public interest, by notification,
direct that any of the provisions of this Code shall—
(a) not apply to micro, small and medium enterprises; or
(b) apply to micro, small and medium enterprises, with such modifications as may be specified in
the notification.
(3) A draft of every notification proposed to be issued under sub-section (2), shall be laid before each
House of Parliament, while it is in session, for a total period of thirty days which may be comprised in
one session or in two or more successive sessions.
(4) If both Houses agree in disapproving the issue of notification or both Houses agree in making any
modification in the notification, the notification shall not be issued or shall be issued only in such
modified form as may be agreed upon by both the Houses, as the case may be.
(5) The period of thirty days referred to in sub-section (3) shall not include any period during which
the House referred to in sub-section (4) is prorogued or adjourned for more than four consecutive days.
(6) Every notification issued under this section shall be laid, as soon as may be after it is issued,
before each House of Parliament.
Explanation.—For the purposes of this section, the expression “micro, small and medium enterprises”
means any class or classes of enterprises classified as such under sub-section (1) of section 7 of the
Micro, Small and Medium Enterprises Development Act, 2006.]
241. Rules and regulations to be laid before Parliament.—Every rule and every regulation made
under this Code shall be laid, as soon as may be after it is made, before each House of Parliament, while it
is in session, for a total period of thirty days which may be comprised in one session or in two or more
successive sessions, and if, before the expiry of the session immediately following the session or the
successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or
both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter
have effect only in such modified form or be of no effect, as the case may be; so, however, that any such
modification or annulment shall be without prejudice to the validity of anything previously done under
that rule or regulation.
242. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of
this Code, the Central Government may, by order, published in the Official Gazette, make such provisions
not inconsistent with the provisions of this Code as may appear to be necessary for removing the
difficulty:
Provided that no order shall be made under this section after the expiry of five years from the
commencement of this Code.
(2) Every order made under this section shall be laid, as soon as may be after it is made, before each
House of Parliament.
243. Repeal of certain enactments and savings.—(1) The Presidency Towns Insolvency
Act, 1909 (3 of 1909) and the Provincial Insolvency Act, 1920 (5 of 1920) are hereby repealed.
(2) Notwithstanding the repeal under sub-sections (1),—
(i) all proceedings pending under and relating to the Presidency Towns Insolvency
Act, 1909 (3 of 1909), and the Provincial Insolvency Act 1920 (5 of 1920) immediately before the
commencement of this Code shall continue to be governed under the aforementioned Acts and be
heard and disposed of by the concerned courts or tribunals, as if the aforementioned Acts have not
been repealed;
(ii) any order, rule, notification, regulation, appointment, conveyance, mortgage, deed, document
or agreement made, fee directed, resolution passed, direction given, proceeding taken, instrument
executed or issued, or thing done under or in pursuance of any repealed enactment shall, if in force at
the commencement of this Code, continue to be in force, and shall have effect as if the
aforementioned Acts have not been repealed;
138
(iii) anything done or any action taken or purported to have been done or taken, including any
rule, notification, inspection, order or notice made or issued or any appointment or declaration made
or any operation undertaken or any direction given or any proceeding taken or any penalty,
punishment, forfeiture or fine imposed under the repealed enactments shall be deemed valid;
(iv) any principle or rule of law, or established jurisdiction, form or course of pleading, practice
or procedure or existing usage, custom, privilege, restriction or exemption shall not be affected,
notwithstanding that the same respectively may have been in any manner affirmed or recognised or
derived by, in, or from, the repealed enactments;
(v) any prosecution instituted under the repealed enactments and pending immediately before the
commencement of this Code before any court or tribunal shall, subject to the provisions of this Code,
continue to be heard and disposed of by the concerned court or tribunal;
(vi) any person appointed to any office under or by virtue of any repealed enactment shall
continue to hold such office until such time as may be prescribed; and
(vii) any jurisdiction, custom, liability, right, title, privilege, restriction, exemption, usage,
practice, procedure or other matter or thing not in existence or in force shall not be revised or
restored.
(3) The mention of particular matters in sub-section (2) shall not be held to prejudice the general
application of section 6 of the General Clauses Act, 1897 (10 of 1897) with regard to the effect of repeal
of the repealed enactments or provisions of the enactments mentioned in the Schedule.
244. Transitional provisions.—(1) Until the Board is constituted or a financial sector regulator is
designated under section 195, as the case may be, the powers and functions of the Board or such
designated financial sector regulator, including its power to make regulations, shall be exercised by the
Central Government.
(2) Without prejudice to the generality of the power under sub-section (1), the Central Government
may by regulations provide for the following matters:—
(a) recognition of persons, categories of professionals and persons having such qualifications and
experience in the field of finance, law, management or insolvency as it deems necessary, as
insolvency professionals and insolvency professional agencies under this Code;
(b) recognition of persons with technological, statistical, and data protection capability as it
deems necessary, as information utilities under this Code; and
(c) conduct of the corporate insolvency resolution process, insolvency resolution process,
liquidation process, fresh start process and bankruptcy process under this Code.
245. Amendments of Act 9 of 1932.—The Indian Partnership Act, 1932 shall be amended in the
manner specified in the First Schedule.
246. Amendments of Act 1 of 1944.—The Central Excise Act, 1944 shall be amended in the manner
specified in the Second Schedule.
247. Amendments of Act 43 of 1961.—The Income- tax Act, 1961 shall be amended in the manner
specified in the Third Schedule.
248. Amendments of Act 52 of 1962.—The Customs Act, 1962 shall be amended in the manner
specified in the Fourth Schedule.
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.
250. Amendments of Act 32 of 1994.—The Finance Act, 1994 shall be amended in the manner
specified in the Sixth Schedule.
139
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.
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.
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.
254. Amendments of Act 6 of 2009.—The Limited Liability Partnership Act, 2008 shall be amended
in the manner specified in the Tenth Schedule.
255. Amendments of Act 18 of 2013.—The Companies Act, 2013 shall be amended in the manner
specified in the Eleventh Schedule.