“(1)With effect from such date as the Central Government may, by notification, appoint,
there shall be established, for the purposes of this Code, a Board by the name of the Insolvency
and Bankruptcy Board of India.
(2) The Board shall be a body corporate by the name aforesaid, having perpetual
succession and a common seal, with power, subject to the provisions of this Code, to acquire,
hold and dispose of property, both movable and immovable, and to contract, and shall, by the
said name, sue or be sued.
(3) The head office of the Board shall be at such place in the National Capital Region,
as the Central Government may, by notification, specify.
Explanation. – For the purposes of this section, the expression “National Capital Region” shall have the same meaning as assigned to it in clause (f) of section 2 of the National
Capital Region Planning Board Act, 1985 (2 of 1985).
(4) The Board may establish offices at other places in India.” VL Note : –
“(1) The Board shall consist of the following members who shall be appointed by the
Central Government, namely: –
(a) a Chairperson;
(b) three members from amongst the officers of the Central Government not below
the rank of Joint Secretary or equivalent, one each to represent the Ministry of Finance,
the Ministry of Corporate Affairs and Ministry of Law, ex -officio;
(c) one member to be nominated by the Reserve Bank of India, ex-officio;
(d) five other members to be nominated by the Central Government, of whom at
least three shall be the whole-time members.
(2) The Chairperson and the other members shall be persons of ability, integrity and
standing, who have shown capacity in dealing with problems relating to insolvency or
bankruptcy and have special knowledge and experience in the field of law, finance, economics,
accountancy or administration.
(3) The appointment of the Chairperson and the members of the Board other than the
appointment of an ex-officio member under this section shall be made after obtaining the
recommendation of a selection committee consisting of –
(a) Cabinet Secretary- Chairperson;
(b)Secretary to the Government of India to be nominated by the Central
(c) Chairperson of the Insolvency and Bankruptcy Board of India (in case of
selection of members of the Board)- Member;
(d)three experts of repute from the field of finance, law, management, insolvency
and related subject, to be nominated by the Central Government- Members.
(4) The term of office of the Chairperson and members (other than ex-officio members)
shall be five years or till they attain the age of sixty-five years, whichever is earlier, and they
shall be eligible for re-appointment.
(5) The salaries and allowances payable to, and other terms and conditions of service
of, the Chairperson and members (other than the ex-officio members) shall be such as may be
prescribed.” VL Note : –
“The Central Government may remove a member from office if he–
(a) is an undischarged bankrupt as defined under Part III;
(b) has become physically or mentally incapable of acting as a member;
(c) has been convicted of an offence, which in the opinion of Central Government
involves moral turpitude;
(d)has, so abused his position as to render his continuation in office detrimental to
the public interest:
Provided that no member shall be removed under clause (d) unless he has been given a
reasonable opportunity of being heard in the matter” VL Note : –
“Save as otherwise determined by regulations, the Chairperson shall have powers of
general superintendence and direction of the affairs of the Board and may also exercise such
other powers as may be delegated to him by the Board” VL Note : –