On 28th day of May 2016, Ministry of Law and Justice published the Insolvency and Bankruptcy Code 2016 for “General Information” of receiving the assent from President of India.
By this publication, nothing including Section 1 of the Insolvency and Bankruptcy Code 2016 come into force. Accordingly, “It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint [Section 1(3)].” This Section is in sharp contrast with Section 1(3) of the Companies Act, 2013, which make it clear that Section 1 of that Act came into force at once.
In case of the Insolvency and Bankruptcy Code, 2016 government is required to notify this Act, including its Section 1.
Further, According to Proviso to sub – section (3) of Section 1, different dates may be appointed for different provisions of this Code and any reference in any such provision to the commencement of this Code shall be construed as a reference to the commencement of that provision.”
Accordingly, the Insolvency and Bankruptcy Code, 2016 shall not come into force at once but in phased manner. This is correct approach for smooth enforcement of any big legislation.
As No section of the Code came into force on 28th May 2016 including Sections 245 to 255, there is not amendment in the Acts mentioned these Sections. Accordingly, the Companies Act, 2013 has no amendment on 28th May 2016.
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