INSOLVENCY
AND BANKRUPTCY CODE, 2016*
[31 Of 2016]
[AS AmENDED BY ThE INSOLVENCY AND BANKRUPTCY CODE (AmENDmENT) ACT, 2026]
An Act to consolidate and amend the laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximisation of value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders including alteration in the order of priority of payment of Government dues and to establish an Insolvency and Bankruptcy Board of India, and for matters connected therewith or incidental thereto. Be i t e nact e d by Parli a me nt i n t he Si xt y- s eve nt h Year of t he Re p ubli c of I ndi a as f oll o ws:
PART I
Preliminary
Short title, extent and commencement.
1. ( 1) Thi s Co de may be call e d t he I ns ol ve ncy a nd Ba nkr upt cy Co de, 2016. ( 2) It ext e nds t o t he whol e of I ndi a. 1[ ***]
( 3) It s hall c o me i nt o f or ce o n s uc h dat e as t he Ce nt r al Gover n me nt may, by noti fi cati o n† i n t he Offi ci al Gaz ett e, a ppoi nt:
Provided t hat di ff er e nt dat es may be a ppoi nt e d f or di ff er e nt pr ovi si o ns of t hi s Co de a nd a ny r ef er e nce i n a ny s uc h pr ovi si o n t o t he c o mme nce me nt of t hi s Co de s hall be c o nst r ue d as a r ef er e nce t o t he c o mme nce me nt of t hat pr ovi si o n.
Application.
2. The pr ovi si o ns of t hi s Co de s hall a ppl y t o —
1a( a ) a ny c o mpa ny i nc or por at e d under t he Co mpa ni es Act, 2013 ( 18 of 2013) or under a ny pr evi o us c o mpa ny l a w ;
* Dat e d 28- 5- 2016.
†Vide Noti fi cati on Nos. S . O . 2618( E), dat e d 5- 8- 2016, S . O . 2746( E), dat e d 19- 8- 2016, S . O . 3110( E), dat e d 1- 10- 2016, S . O . 3355( E), dat e d 1- 11- 2016, S . O . 3453( E), dat e d 15- 11- 2016, S . O . 3594( E), dat e d 30- 11- 2016, S O 3687( E), dat e d 9- 12- 2016, S O 1005( E), dat e d 30- 3- 2017, S O 1570( E), dat e d 15- 5- 2017, S . O . 1910( E), dat e d 14- 6- 2017, S . O . 1911( E), dat e d 14- 6- 2017, S . O . 4126( E), dat e d 15- 11- 2019, S . O . 1205( E), dat e d 24- 3- 2020 a nd S . O . 1543( E), dat e d 9- 4- 2021.
1. O m i tt e d by t he J a mmu a nd Kas h m i r Re or ga ni s ati on ( Adapt ati on of Ce nt r al La ws) Or der, 2020, w e f 18- 3- 2020 Pri or t o i t s o m i ssi on, pr ovi s o r ea d as under :
“ Provided t hat Part III of t hi s Code s hall not ext e nd t o t he St at e of J a mmu a nd Kas h m i r ” 1a Enf or ce d w i t h eff ect f r o m1- 12- 2016 ( exce pt w i t h r egar d t o vol unt ar y li q ui dati on or Ba nkr upt cy). W i t h eff ect f r o m 1- 4- 2017 w i t h r egar d t o vol unt ar y li q ui dati on or Ba nkr upt cy.
2(b ) a ny ot her c o mpa ny g over ne d by a ny s peci al Act f or t he ti me bei ng i n f or ce, exce pt i n s o f ar as t he s ai d pr ovi si o ns ar e i nc o nsi st e nt w i t h t he pr ovi si o ns of s uc h s peci al Act;
2( c ) a ny Li m i t e d Li a bili t y Part ners hi p i nc or por at e d under t he Li m i t e d Li a bili t y Part ners hi p Act, 2008 ( 6 of 2009);
2(d ) s uc h ot her bo dy i nc or por at e d under a ny l a w f or t he ti me bei ng i n f or ce, as t he Ce nt r al Gover n me nt may, by noti fi cati o n, s peci f y i n t hi s be hal f; 3[ ***]
4[5( e ) pers o nal g uar a nt ors t o c or por at e de bt ors; (f ) part ners hi p fi r ms a nd pr opri et ors hi p fi r ms; a nd ( g ) i ndi vi dual s, ot her t ha n pers o ns r ef err e d t o i n cl a us e ( e ), ] i n r el ati o n t o t hei r i ns ol ve ncy, li q ui dati o n, v ol unt ar y li q ui dati o n or ba nkr upt cy, as t he cas e may be.
Definitions.
3. I n t hi s Co de, unl ess t he c o nt ext ot her w i s e r e q ui r es,
6(1 ) “ Boar d” mea ns t he I ns ol ve ncy a nd Ba nkr upt cy Boar d of I ndi a est a b - li s he d under s ub- s ecti o n ( 1) of s ecti o n 188;
7(2 ) “ be nc h” mea ns a be nc h of t he Adj udi cati ng Aut hori t y;
7(3 ) “ bye-l a ws” mea n t he bye-l a ws ma de by t he i ns ol ve ncy pr of essi o nal age ncy under s ecti o n 205;
7(4 ) “ c har ge” mea ns a n i nt er est or li e n cr eat e d o n t he pr opert y or ass et s of a ny pers o n or a ny of i t s undert a ki ngs or bot h, as t he cas e may be, as s ec uri t y a nd i ncl udes a mort gage;
6(5 ) “ Chai r pers o n” mea ns t he Chai r pers o n of t he Boar d;
7(6 ) “ cl ai m” mea ns
( a ) a ri g ht t o pay me nt, whet her or not s uc h ri g ht i s r e duce d t o j udg me nt, fi xe d, di s p ut e d, undi s p ut e d, l egal, e q ui t a bl e, s ec ur e d or uns ec ur e d;
(b ) ri g ht t o r e me dy f or br eac h of c ont r act under a nyl a wf or t he ti me bei ng i n f or ce, i f s uc h br eac h gi ves ri s e t o a ri g ht t o pay me nt, whet her or not s uc h ri g ht i s r e duce dt oj udg me nt, fi xe d , mat ur e d , un mat ur e d, di s p ut e d, undi s p ut e d, s ec ur e d or uns ec ur e d;
2. Enf or ce d w i t h eff ect f r o m 1- 12- 2016 ( exce pt w i t h r egar d t o vol unt ar y li q ui dati on or Ba nkr upt cy) W i t h eff ect f r o m1- 4- 2017 w i t h r egar dt o vol unt ar yli q ui dati on or Ba nkr upt cy
3 Wor d “ a nd” o m i tt e d by t he I ns ol ve ncy a nd Ba nkr upt cy Code ( A me nd me nt) Act, 2018, w . r. e. f. 23- 11- 2017.
4. Cl a us es ( e ), (f ) a nd ( g ) wer e s ubsti t ut e d f or cl a us e ( e ), ibid. Pri or t o i t s s ubsti t uti on, cl a us e ( e ) r ea d as under : “( e ) part ners hi p fi r ms a nd i ndi vi dual s, ”
5. Cl a us e ( e ) e nf or ce d w i t h eff ect f r o m 1- 12- 2019 i n s o f ar as t hey r el at e t o pers onal g uara nt ors t o c or por at e de bt ors
6 Enf or ce d w i t h eff ect f r o m 19- 8- 2016
7 Enf or ce d w i t h eff ect f r o m 1- 11- 2016
8(7 ) “ c or por at e pers o n” mea ns a c o mpa ny as defi ne d i n cl a us e (20 ) of s ecti o n 29 of t he Co mpa ni es Act, 2013 ( 18 of 2013), a li m i t e d li a bili t y part ners hi p, as defi ne d i n cl a us e ( n ) of s ub- s ecti o n ( 1) of s ecti o n 210 of t he Li m i t e d Li a bili t y Part ners hi p Act, 2008 ( 6 of 2009), or a ny ot her pers o n i nc or por at e d w i t h li m i t e d li a bili t y under a ny l a wf or t he ti me bei ng i n f or ce but s hall not i ncl ude a ny fi na nci al s er vi ce pr ovi der;
8(8 ) “ c or por at e de bt or” mea ns a c or por at e pers o n who o wes a de bt t o a ny pers o n;
8(9 ) “ c or e s er vi ces” mea ns s er vi ces r e nder e d by a n i nf or mati o n utili t y f or
( a ) acce pti ng el ect r oni c s ub m i ssi on of fi na nci al i nf or mati oni n s uc h f or m a nd ma nner as may be s peci fi e d;
(b ) s af e a nd acc ur at e r ec or di ng of fi na nci al i nf or mati o n;
( c ) a ut he nti cati ng a nd veri f yi ng t he fi na nci al i nf or mati on s ub m i tt e d by a pers o n; a nd
(d ) pr ovi di ng access t o i nf or mati o n st or e d w i t h t he i nf or mati o n utili t y t o pers o ns as may be s peci fi e d;
8(10 ) “ cr e di t or” mea ns a ny pers o n t o who m a de bt i s o we d a nd i ncl udes a fi na nci al cr e di t or, a n oper ati o nal cr e di t or, a s ec ur e d cr e di t or, a n uns ec ur e d cr e di t or a nd a decr ee- hol der;
8(11 ) “ de bt” mea ns a li a bili t y or o bli gati o n i n r es pect of a cl ai m whi c h i s due f r o m a ny pers o n a nd i ncl udes a fi na nci al de bt a nd oper ati o nal de bt;
8(12 ) “ def a ul t” mea ns no n- pay me nt of de bt whe n whol e or a ny part or i nst al me nt of t he a mo unt of de bt has bec o me due a nd paya bl e a nd i s not 11[ pai d] by t he de bt or or t he c or por at e de bt or, as t he cas e may be;
8(13 ) “fi na nci al i nf or mati o n”, i n r el ati o n t o a pers o n, mea ns o ne or mor e of t he f oll o w i ng cat eg ori es of i nf or mati o n, na mel y :
( a ) r ec or ds of t he de bt of t he pers o n;
(b ) r ec or ds of li a bili ti es whe n t he pers o n i s s ol ve nt;
( c ) r ec or ds of ass et s of pers o n over whi c h s ec uri t y i nt er est has bee n cr eat e d;
(d ) r ec or ds, i f a ny, of i nst a nces of def a ul t by t he pers o n agai nst a ny de bt;
( e ) r ec or ds of t he bal a nce s heet a nd cas h- fl o w st at e me nt s of t he pers o n; a nd
(f ) s uc h ot her i nf or mati o n as may be s peci fi e d.
8. Enf or ce d w i t h eff ect f r o m 1- 11- 2016.
9. For defi ni ti on of s ecti on 2(20 ) of t he Co mpa ni es Act, 2013, see Appendix .
10. For t ext of s ecti on 2( 1)( n ) of t he Li m i t e d Li a bili t y Part ners hi p Act, 2008, see Appendix .
11. Substi t ut e d f or “ r e pai d” by t he I ns ol ve ncy a nd Ba nkr upt cy Code ( Sec ond A me nd me nt) Act, 2018, w r e f 6- 6- 2018
12(14 ) “fi na nci al i nsti t uti o n” mea ns
( a ) a s c he dul e d ba nk;
(b ) fi na nci al i nsti t uti o n as defi ne d i n s ecti o n 45- I13 of t he Res er ve Ba nk of I ndi a Act, 1934 ( 2 of 1934);
( c ) Publi c fi na nci al i nsti t uti o n as defi ne d i n cl a us e (72 ) of s ecti o n 214 of t he Co mpa ni es Act, 2013 ( 18 of 2013); a nd
(d ) s uc h ot her i nsti t uti o n as t he Ce nt r al Gover n me nt may by noti - fi cati o n s peci f y as a fi na nci al i nsti t uti o n;
12(15 ) “ fi na nci al pr o d uct ” me a ns s e c uri ti es, c o nt r a ct s of i ns ur a nc e, de posi t s, cr e di t arr a nge me nt s i ncl udi ng l oa ns a nd a dva nces by ba nks a ndfi na nci al i nsti t uti ons, r eti r e me nt be nefi t pl a ns, s mall s avi ngs i nst r ume nt s, f or ei g n c urr e ncy c o nt r act s ot her t ha n c o nt r act s t o exc ha nge o ne c urr e ncy ( whet her I ndi a n or not) f or a not her whi c h ar e t o be s ettl e d i mme di at el y, or a ny ot her i nst r u me nt as may be pr es cri be d;
12(16 ) “fi na nci al s er vi ce” i ncl udes a ny of t he f oll o w i ng s er vi ces, na mel y:
( a ) acce pti ng of de posi t s;
(b ) s af eg uar di ng a nd a d m i ni st eri ng ass et s c o nsi sti ng of fi na nci al pr o duct s, bel o ngi ng t o a not her pers o n, or agr eei ng t o do s o;
( c ) eff ecti ng c o nt r act s of i ns ur a nce;
(d ) off eri ng, ma nagi ng or agr eei ng t o ma nage ass et s c o nsi sti ng of fi na nci al pr o duct s bel o ngi ng t o a not her pers o n;
( e ) r e nderi ng or agr eei ng, f or c o nsi der ati o n, t o r e nder a dvi ce o n or s oli ci ti ng f or t he p ur pos es of
(i ) buyi ng, s elli ng, or s ubs cri bi ng t o, a fi na nci al pr o duct;
(ii ) availi ng a fi na nci al s er vi ce; or
(iii ) exer ci si ng a ny ri g ht ass oci at e d w i t h a fi na nci al pr o duct or fi na nci al s er vi ce;
(f ) est a bli s hi ng or oper ati ng a n i nvest me nt s c he me;
( g ) mai nt ai ni ng or t r a nsf erri ng r ec or ds of o wners hi p of a fi na nci al pr o duct;
(h ) under wri ti ng t hei ss ua nce or s ubs cri pti on of a fi na nci al pr oduct; or
(i ) s elli ng, pr ovi di ng, or i ss ui ng st or e d val ue or pay me nt i nst r u me nt s or pr ovi di ng pay me nt s er vi ces;
12(17 ) “fi na nci al s er vi ce pr ovi der” mea ns a pers o n e ngage d i n t he busi ness of pr ovi di ng fi na nci al s er vi ces i n t er ms of a ut hori s ati o n i ss ue d or r egi st r ati o n gr a nt e d by a fi na nci al s ect or r eg ul at or;
12. Enf or ce d w i t h eff ect f r o m 1- 11- 2016.
13. For t ext of s ecti on 45-I of t he Res er ve Ba nk of I ndi a Act, 1934, see Appendix .
14. For defi ni ti on of s ecti on 2(72 ) of t he Co mpa ni es Act, 2013, see Appendix .
15(18 ) “fi na nci al s ect or r eg ul at or” mea ns a n a ut hori t y or bo dy c o nsti t ut e d under a ny l a w f or t he ti me bei ng i n f or ce t o r eg ul at e s er vi ces or t r a ns acti o ns of fi na nci al s ect or a nd i ncl udes t he Res er ve Ba nk of I ndi a, t he Sec uri ti es a nd Exc ha nge Boar d of I ndi a, t he I ns ur a nce
Reg ul at or y a nd Devel op me nt Aut hori t y of I ndi a, t he Pe nsi o n Fund Reg ul at or y Aut hori t y a nd s uc h ot her r eg ul at or y a ut hori ti es as may be noti fi e d by t he Ce nt r al Gover n me nt;
15(19 ) “i ns ol ve ncy pr of essi o nal ” mea ns a pers o n e nr oll e d under s ecti o n 206 w i t h a n i ns ol ve ncy pr of essi o nal age ncy as i t s me mber a nd r egi st er e d w i t h t he Boar d as a n i ns ol ve ncy pr of essi o nal under s ecti o n 207;
15(20 ) “i ns ol ve ncy pr of essi o nal age ncy” mea ns a ny pers o n r egi st er e d w i t h t he Boar d under s ecti o n 201 as a n i ns ol ve ncy pr of essi o nal age ncy;
15(21 ) “i nf or mati o n utili t y ” mea ns a pers o n who i s r egi st er e d w i t h t he Boar d as a n i nf or mati o n utili t y under s ecti o n 210;
16(22 ) “ noti fi cati o n” mea ns a noti fi cati o n p ubli s he d i n t he Offi ci al Gaz ett e, a nd t he t er ms “ noti fi e d” a nd “ noti f y ” s hall be c o nst r ue d acc or di ngl y;
15(23 ) “ pers o n” i ncl udes
( a ) a n i ndi vi dual;
(b ) a H i ndu Undi vi de d Fa mil y;
( c ) a c o mpa ny;
(d ) a t r ust;
( e ) a part ners hi p;
(f ) a li m i t e d li a bili t y part ners hi p; a nd
( g ) a ny ot her e nti t y est a bli s he d under a st at ut e; a nd i ncl udes a pers o n r esi de nt o ut si de I ndi a;
15(24 ) “ pers o n r esi de nt i n I ndi a” s hall have t he mea ni ng as assi g ne d t o s uc h t er mi n cl a us e ( v ) of s ecti o n 2 of t he For ei g n Exc ha nge Ma nage me nt Act, 1999 ( 42 of 1999)17;
15(25 ) “ pers o n r esi de nt o ut si de I ndi a” mea ns a pers o n ot her t ha n a pers o n r esi de nt i n I ndi a;
18(26 ) “ pr es cri be d” mea ns pr es cri be d by r ul es ma de by t he Ce nt r al Gover nme nt;
15(27 ) “ pr opert y ” i ncl udes mo ney, g oo ds, acti o na bl e cl ai ms, l a nd a nd ever y des cri pti o n of pr opert y si t uat e d i n I ndi a or o ut si de I ndi a a nd ever y des cri pti o n of i nt er est i ncl udi ng pr es e nt or f ut ur e or vest e d or c o n - ti nge nt i nt er est ari si ng o ut of, or i nci de nt al t o, pr opert y;
18a [( 27 A ) “registered valuer” shall have the same meaning as assigned to it under Chapter XVII of the Companies Act, 2013 (18 of 2013) ; ]
15 Enf or ce d w i t h eff ect f r o m 1- 11- 2016
16 Enf or ce d w i t h eff ect f r o m 19- 8- 2016
17 For defi ni ti ons of “ pers on r esi de nt i n I ndi a” a nd “ wor k ma n”, see Appendix
18 Enf or ce d w i t h eff ect f r o m 19- 8- 2016
18a I ns ert e d t he I
18aa(28 ) “ r eg ul ati o ns” mea ns t he r eg ul ati o ns ma de by t he Boar d under t
s Co de;
18 b(29 ) “ Sc he dul e” mea ns t he Sc he dul e a nnexe d t o t hi s Co de;
18 b(30 ) “ s ec ur e d cr e di t or” mea ns a cr e di t or i n f av o ur of who m s ec uri t y i nt er est i s cr eat e d;
18 b(31 ) “ s ec uri t y i nt er est” mea ns ri g ht, ti tl e or i nt er est or a cl ai mt o pr opert y, cr eat e d i n f av o ur of, or pr ovi de d f or a s ec ur e d cr e di t or by a t r a ns - acti o n whi c h s ec ur es pay me nt or perf or ma nce of a n o bli gati o n a nd i ncl udes mort gage, c har ge, hy pot hecati o n, assi g n me nt a nd e nc u m - br a nce or a ny ot her agr ee me nt or arr a nge me nt s ec uri ng pay me nt or perf or ma nce of a ny o bli gati o n of a ny pers o n:
Provided t hat s ec uri t y i nt er est s hall not i ncl ude a perf or ma nce g uara nt ee.
18c [ Ex pl a nati o n.
For the removal of doubts, it is hereby clarified that the security interest shall exist only if it creates a right, title or interest or a claim to a property pursuant to an agreement or arrangement, by the act of two or more parties, and shall not include a security interest created merely by operation of any law for the time being in force;]
18c [( 31 A ) “service provider” means an insolvency professional, insolvency professional agency, information utility, registered valuer and any person falling within the category of persons notified by the Central Government, for rendering services in relation to insolvency and bankruptcy processes under this Code and is registered with the Board;]
18 b(32 ) “ s peci fi e d” mea ns s peci fi e d by r eg ul ati o ns ma de by t he Boar d under t hi s Co de a nd t he t er m“ s peci f y ” s hall be c o nst r ue d acc or di ngl y;
18 b(33 ) “t r a ns acti o n” i ncl udes a n agr ee me nt or arr a nge me nt i n wri ti ng f or t he t r a nsf er of ass et s, or f unds, g oo ds or s er vi ces, f r o m or t o t he c or por at e de bt or;
18 b(34 ) “t r a nsf er” i ncl udes s al e, p ur c has e, exc ha nge, mort gage, pl e dge, gi ft, l oa n or a ny ot her f or m of t r a nsf er of ri g ht, ti tl e, poss essi o n or li e n;
18 b(35 ) “t r a nsf er of pr opert y ” mea ns t r a nsf er of a ny pr opert y a nd i ncl udes a t r a nsf er of a ny i nt er est i n t he pr opert y a nd cr eati o n of a ny c har ge upo n s uc h pr opert y;
18 b(36 ) “ wor k ma n” s hall have t he s a me mea ni ng as assi g ne d t o i t i n cl a us e ( s ) of s ecti o n 2 of t he I ndust ri al Di s p ut es Act, 1947 ( 14 of 1947)18 d;
18aa(37 ) wor ds a nd ex pr essi o ns us e d but not defi ne d i n t hi s Co de but defi ne d i n t he I ndi a n Co nt r act Act, 1872 ( 9 of 1872), t he I ndi a n Part ners hi p Act, 1932 ( 9 of 1932), t he Sec uri ti es Co nt r act s ( Reg ul ati o n) Act, 1956 ( 42 of 1956), t he Sec uri ti es a nd Exc ha nge Boar d of I ndi a Act, 1992
18aa Enf or ce d w i t h eff ect f r o m 19- 8- 2016
18 b Enf or ce d w i t h eff ect f r o m 1- 11- 2016
18c I ns ert e d by t he I ns ol ve nc y a nd Ba nkr upt c y Co de ( A me nd me nt) Act, 2026, w e f
26-5-2026 .
18 d. For defi ni ti ons of “ pers on r esi de nt i n I ndi a” a nd “ wor k ma n”, see Appendix .
( 15 of 1992), t he Rec over y of De bt s Due t o Ba nks a nd Fi na
al I nsti t uti o ns Act, 1993 ( 51 of 1993), t he Li m i t e d Li a bili t y Part ners hi p Act, 2008 ( 6 of 2009) a nd t he Co mpa ni es Act, 2013 ( 18 of 2013), s hall have t he mea ni ngs r es pecti vel y assi g ne d t o t he mi n t hos e Act s.
PART II
insolvency resolution and liquidation For corPorate Persons
CHAPTER I
Preliminary
Application of this Part. 19 4. ( 1) Thi s Part s hall a ppl y t o matt ers r el ati ng t o t he i ns ol ve ncy a nd li q ui dati o n of c or por at e de bt ors wher e t he m i ni mu m a mo unt of t he def a ul t i s o ne l a k h r upees:
Provided t hat t he Ce nt r al Gover n me nt may, by noti fi cati o n19a, s peci f y t he m i ni mu m a mo unt of def a ul t of hi g her val ue whi c h s hall not be mor e t ha n o ne cr or e r upees:
20[Provided further t hat t he Ce nt r al Gover n me nt may, by noti fi cati o n20a, s peci f y s uc h m i ni mu ma mo unt of def a ul t of hi g her val ue, whi c h s hall not be mor e t ha n o ne cr or e r upees, f or matt ers r el ati ng t o t he pr e- pac kage di ns ol ve ncy r es ol uti o n pr ocess of c or por at e de bt ors under Cha pt er III- A . ]
COmmENTS
SECTION NOTES
u
Secti on 4 pr ovi des t hat t he pr ovi si ons of t hi s part ( Part II) s hall appl y t o matt ers r el ati ng t o t he i ns ol ve ncy r es ol uti on a nd li q ui dati on of c or por at e de bt ors, wher e t he m i ni mu m a mo unt of t he def a ul t i s one l akh r upees or s uc h ot her a mo unt as may be s peci fi e d by t he Ce nt r al Gover n me nt, not excee di ng r upees one cr or e
19. Enf or ce d w i t h eff ect f r o m 1- 12- 2016.
19a Notification No. S.O. 1205(E), dated 24-3-2020 : I n exer ci s e of t he po wers c onf err e d by t he pr ovi s o t o s ecti on 4 of t he I ns ol ve ncy a nd Ba nkr upt cy Code, 2016 ( 31 of 2016), t he Ce nt r al Gover n me nt her e by s peci fi es one cr or e r upees as t he m i ni mu ma mo unt of def a ul t f or t he p ur pos es of t he s ai d s ecti on.
20 I ns ert e d by t he I ns ol ve ncy a nd Ba nkr upt cy Code ( A me nd me nt) Act, 2021, w r e f 4- 4- 2021
20a
Notification No. S.O. 1543(E), dated 9-4-2021 : I n exer ci s e of t he po wers c onf err e d by t he s ec ond pr ovi s o t o s ecti on 4 of t he I ns ol ve ncy a nd Ba nkr upt cy Code, 2016 ( 31 of 2016), as a me nde d by t he I ns ol ve ncy a nd Ba nkr upt cy Code ( A me nd me nt) Or di na nce, 2021 ( 3 of 2021), t he Ce nt r al Gover n me nt her e by s peci fi es t e n l akh r upees as t he m i ni mu m a mo unt of def a ul t f or t he matt ers r el ati ng t o t he pr e- pac kage d i ns ol ve ncy r es ol uti on pr ocess of c or por at e de bt or under Chapt er III- A of t he Code.
minimum amount of default of Rs. 10 Lakhs specified for applicability of this Part to PPIRP
u
The Ce nt r al Gover n me nt has, vi de Notification S.O. 1543(E), dated 9-4-2021 , s peci fi e d t e n l akh r upees as t he m i ni mu m a mo unt of def a ul t f or t he matt ers r el ati ng t o t he pr e- pac kage d i ns ol ve ncy r es ol uti on pr ocess of c or por at e de bt or under Chapt er III- A of t he Code.
minimum amount of default of Rs. 1 crore specified for applicability of this Part to CIRP and liquidation of corporate debtors
u
The Ce nt r al Gover n me nt has, vide Notification No. S.O. 1205(E), dated 24-3-2020 , s peci fi e d one cr or e r upees as t he m i ni mu m a mo unt of def a ul t f or appli ca bili t y of t hi s Part t o matt ers r el ati ng t o t he i ns ol ve ncy a nd li q ui dati on of c or por at e de bt ors ( ot her t ha n pr e- pac kage d i ns ol ve ncy r es ol uti on pr ocess of c or por at e de bt ors under Chapt er III- A)
u
M i ni mu m a mo unt of def a ul t of Rs 1 cr or e i s t he t ri gger f or CI RP , Fast-t r ac k CI RP ( F CI RP) [ o m i tt e d by t he 2026 A me nd me nt Act f r o m a dat e t o be noti fi e d] a nd Cr e di t or-I ni ti at e dI ns ol ve ncy Res ol uti on Pr ocess ( ne wpr ovi si ons i nt r oduce d by t he 2026 A me nd me nt Act f r o m a dat e t o be noti fi e d)
A c o mpa ny/ LLP/ot her c or por at e e nti t y i n de bt- st r ess [ r ef err e d t o as Cor por at e De bt or ( C D) i n I ns ol ve ncy a nd Ba nkr upt cy Code, 2016 (I BC , 2016/t he Code)] oft e n r es ol ves st r ess on i t s o wn by i mpr ovi ng i t s c o mpeti ti ve ness i n mar ket pl ace. It may not, ho wever, s uccee d al ways. It may si t acr oss a t a bl e w i t h i t s st ake hol ders, ei t her i ndi vi duall y or c oll ecti vel y, t o wor k o ut a pl a n t o r es ol ve st r ess. It may r es ort t o a f or mal f r a me wor k t hat pr ovi des a g ui de d pat h f or r es ol uti on a nd de fines t he r ol e of st ake hol ders i n t he f r a me wor k f or r es ol uti on of st r ess
Ther e ar e t wo o ut- of- c o urt opti ons avail a bl e t o a ny de bt- st r ess e d c o mpa ny/ LLP , na mel y, ( a ) t he RBI’ s pr ude nti al f r a me wor k f or r es ol uti on of st r ess e d ass et s a nd (b ) a n i nf or mal underst a ndi ng bet wee n a de bt or a nd cr e di t or, w i t h/ w i t ho ut t he hel p of a me di at or.
And t her e ar e f o ur c o urt- s uper vi s e d st at ut or y opti ons avail a bl e t o a de bt- st r ess e d c orpor at e e nti t y, na mel y,
( a ) Cor por at e I ns ol ve ncy Res ol uti on Pac kage ( CI RP) under t he Code,
(b ) Cr e di t or-I ni ti at e d I ns ol ve ncy Res ol uti on Pr ocess( CII RP) under t he Code ( ne w pr ovi si ons i nt r oduce d by t he 2026 A me nd me nt Act
( c ) Pr e- Pac kage dI ns ol ve ncy Res ol uti on Pr ocess ( PPI RP) under t he Code ( appli ca bl e t o r egi st er e d MS MEs whi c h ar e Co mpa ni es / LLPs a nd
(d ) Sc he me of c o mpr o m i s e or arr a nge me nt ( So A) under t he Co mpa ni es Act, 2013/ LLP Act, 2008.
A cr e di t or has access t o t hes e f o ur opti ons t o r es ol ve st r ess of i t s de bt ors, i n a ddi ti on t o s ever al opti ons f or r ec over y of i t s l oa ns.
Comparison of newly introduced Creditor-Initiated Insolvency Resolution Process (CIIRP) with the CIRP and Pre-packs (PPIRP)
A s u mmar y of t he c o mpari s on a mongst t he t hr ee pr ocess es i s as under:
features CIIRP CIRP Pre-packs (PPIRP)
I ni ti ati on On def a ul t, a fi na nci al
c r e di t or b el o n gi n g t o noti fi e d cl ass of fi na nci al i nsti t uti o ns c o mpri si ng atl east 51 % of t he fi na nci al de bt (i n val ue) may i ni ti - at e CII RP aft er a 30 days’ noti ce t o t he C D
Pr ocess i s f or mall y c o mme nc e d f r o m t he dat e of fili ng of appli cati on of i nti mati on of appoi nt me nt of RP bef or e t he AA a nd t he Boar d. No appli cati on f or i ni ti ati on of t he pr ocess s ee ki ng or ders.
The appli cati on i s pr es e nt e d t o t he A A f or i ni ti ati o n of CI RP .
On appli cati on by F C , OC or C D be - f or e
AA , whi c h pass es an or der f or ad m i s - si on a nd t he pr ocess c o mme nces.
C D c onve nes meeti ngs of t he unr el at e d Fi na nci al Cr e di t ors
Cr e di t or s r e pr es e nti ng not l ess t ha n 66 %i n val ue of de bt appr ove fili ng of appli cati on f or i ni ti ati on of PPI RP .
C D fil es appli cati on f or i ni ti ati on of pr ocess be - f or e t he AA a nd t he pr ocess c o mme nces on t he dat e of a d m i ssi on of t he appli cati on.
C Ds
Part y i n
Cont r ol of t he C D
C Ds whi c h have ass et si z es as noti fi e d by t he Ce nt r al
Go v er n me nt a n d wi t h
a def a ul t of a m i ni mu m
a mo unt I NR 1 Cr or e.
Ma nage me nt of C D (t he
C D ’ s ma nage me nt i t s el f
or a cr e di t or /s who may have c o me i n poss essi on/ c ont r ol pri or t o i ni ti ati on of CII RP)
C Ds wi t h a d e - f a ul t of a m i nimu ma mo unt I NR 1 Cr or e.
RP-i n- p os s es si o n wi t h cr e di t or-i nc ont r ol
C D t hat i s a n MS ME a nd has c o mm i tt e d a def a ul t of at l east I NR 10 l akh
De bt o r - i n- p o s s e s si o n w i t h cr e di t or-i n- c ont r ol
Mor at oriu m
Res ol uti on pl a n
Li m i t e d s c ope of mor a - t ori u m . Secti on 14( 1) a nd 14( 3) c o mes i nt o eff ect f r o m t he dat e of appli ca - ti on f or mor at ori u mfil e d by t he RP .
Publi c i nvi t ati on of pl a ns by I P . Thes e ar e deli ber ate d by t he Co C a nd t he best o ne i s s el ect e d t hr o ug h a ma n dat or y c hal l e nge mec ha ni s m .
M o r a t o r i u m c o mes i nt o eff ect f r o mdat e of or der by t he AA till t he
c o mpl eti on of t he CI RP .
T h e Re s ol ut i o n
pr of e s si o n al i n - vi t e s pl a ns a n d t he pl a n t hat i s appr ove d by t he Co C will be pr es e nt e d bef or e t he AA .
Li m i t e d s c ope of mor at o - ri u m . Mor at ori u mc o mes i nt o eff ect f r o m dat e of or der by t he AA till t he co mpl eti on of t he pr ocess
C D pr es e nt s a bas e r es - ol uti on pl a n. If t he s a me i s not acce pt e d by Co C , al t er nat e pl a ns ar e i n - vi t e d The best al t er nat e pl a n i s s el ect e d t hr o ug h a ma ndat or y c hall e nge mec ha ni s m .
AND BANKRUPTCY CODE 2016 WITH RULES – BARE ACT WITH SECTION NOTES
AUTHOR : Taxmann's Editorial Board
PUBLISHER : Taxmann
DATE OF PUBLICATION : June 2026
EDITION : 9th Edition | June 2026
ISBN NO : 9789375610748
NO. OF PAGES : 984
BINDING TYPE : Paperback
1,695
DESCRIPTION
Insolvency and Bankruptcy Code 2016 with Rules [Bare Act with Section Notes] by Taxmann presents the complete, amended text of the Code as it stands after the Insolvency and Bankruptcy Code (Amendment) Act 2026, enforced with effect from 26-05-2026.
The 2026 Amendment is among the most far-reaching since the Code's enactment—introducing novel concepts and rewriting large parts of the corporate insolvency and liquidation machinery. This Edition pairs the amended bare text with rich Section Notes under each provision and front-matter analytical aids explaining what changed, why, and how the position now differs from the pre-amended law. Division Two reproduces the entire suite of allied Rules and Regulations—as amended—making this a single, self-contained working reference on the Code and its subordinate legislation. This book is intended for the following audience:
• Insolvency Professionals, Interim Resolution Professionals, Resolution Professionals and Liquidators
• Advocates, Counsel and Law Firms
• Chartered Accountants, Company Secretaries, Cost Accountants and Registered Valuers
• Banks, NBFCs, ARCs and the Credit, Monitoring and Recovery Teams
• Promoters, Directors, and In-House Legal, Finance and Compliance Teams
• Members of Adjudicating Authorities, the Judiciary and Regulatory Officials
• Academicians, Researchers and Students
The Present Publication is the 9th Edition, covering the amended and updated text of the Insolvency and Bankruptcy Code [Act No. 31 of 2016] and Rules, updated till 26th May 2026. The noteworthy features of this book are as follows:
• [Section-wise Annotation] Section Notes under every provision are the headline feature of the series. Each section carries its marginal heading and structured, topic-wise notes that break the provision into navigable sub-points—so the reader works with a section-wise commentary rather than raw text
• [Dedicated 2026-Amendment Notes] Each affected section carries a focused note on the change, flagged with its enforcement position (Enforced w.e.f. 26-05-2026), so operative provisions and those still awaiting notification are never confused
• [Complete Legislative History] Every insertion, substitution and omission is footnoted with the amending Act and effective date, with the earlier language preserved; newly inserted text is set in square brackets so changes are visible at a glance
• [Integrated Case Law] Judicial precedents are woven into the notes, anchoring provisions in decided case law where relevant
• [Comparison Boxes] Newly introduced mechanisms are placed beside the existing process for quick orientation
• [Analytical Aids on the 2026 Amendment] Three aids appear up front—an 'amendments at a glance' table mapping each section to its effective date and nature of change; a narrative Guide walking through the full set of changes; and a two-part comparative study (a résumé of the amendments, then a clause-by-clause, section-wise comparison of the pre-amended and amended positions)
• [All-in-One Compilation] The amended Code and all 17 allied Rules and Regulations sit together in a single volume, removing the need to consult separate compilations
• [Built-in Navigation] An Arrangement of Sections, an Appendix reproducing provisions of other Acts referred to in the Code, and a Subject Index aid quick reference
