Notification of IBBI related Sections of IBC 2016

Recently Ministry of Corporate Affairs issued two notifications to enforce selected sections of the Insolvency and Bankruptcy Code, 2016. In this post we will briefly discuss section notified by Notification S.O. 2618(E) dated 5th August 2016 and S.O. 2746(E) dated 19th August 2016.

First notification says that the Central Government hereby appoints the 5th of August, 2016 as the date on which the provisions of sections 188 to 194 (both inclusive) of the said Code shall come into force.

These sections are in chapter I of Part IV of the Code. This chapter deals with establishment of the Insolvency and Bankruptcy Board of India (IBBI). Notified Sections deals with –

188 Establishment and incorporation of Board
189 Constitution of Board
190 Removal of member from office
191 Powers of Chairperson
192 Meetings of Board
193 Member not to participate in meetings in certain cases
194 Vacancies, etc., not to invalidate proceedings of Board, Officers and employees of Board

This is prominent to note that government has not notified only one section in chapter I of Part IV of the Code. This is very clear message that government is going to form the Board – IBBI very soon and not going to adopt any ad hoc arrangement.

Second notification notifies some clause of general definition section related to the Board, sections dealing with finance and functions of the Board and powers related to rules regulation and removal of difficulties.

clause 3(1) Board
clause 3(5) Chairperson
clause 3(22) notification
clause 3(26) prescribed
clause 3(28) regulations
clause 3(37) Other words and expressions
221 Grants by Central Government
222 Board’s Fund
225 Power of Central Government to issue directions
226 Power of Central Government to supersede Board
230 Delegation
232 Members, officers and employees of Board to the public servant
233 Protection of action taken in good faith
239 Power to make rules [sub-section (1) and clause (zd) of sub-section (2)]
240 Power to make rugulations [sub-section (1) and clause (zt) of sub-section (2)]
241 Rules and regulations to be laid before Parliament
242 Power to remove difficulties

Now, this is high time to be ready for a full functional IBBI very soon.

Please note: This blog invite readers to share their comments, suggestions, hardship, queries and everything in comment section. This blog post is not a professional advice but just a knowledge sharing initiative for mutual discussion.


One response to “Notification of IBBI related Sections of IBC 2016

  1. Thirupelu Gorige

    Dear Sir, Very useful analysis and lucid presentation. Thanks for sharing with me.

    Liked by 1 person

No professional query in comments (but in mail). Only academic discussion here. Comments moderated. Sometime, I reply to your mail ID.

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