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(37)||Other words and expressions|
|221||Grants by Central Government|
|225||Power of Central Government to issue directions|
|226||Power of Central Government to supersede Board|
|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.
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