Section 224 Insolvency and Bankruptcy Fund
(1) There shall be formed a Fund to be called the Insolvency and Bankruptcy Fund (hereafter in this section referred to as the
“Fund”) for the purposes of insolvency resolution, liquidation and bankruptcy of persons under the Code.
(2) There shall be credited to the Fund the following amounts, namely —
(a) the grants made by the Central Government for the purposes of the Fund;
(b) the amount deposited by persons as contribution to the Fund;
(c) the amount received in the Fund from any other source; and
(d) the interest or other income received out of the investment made from the Fund.
(3) A person who has contributed any amount to the Fund may, in the event of proceedings initiated in respect of such person
under this Code before an Adjudicating Authority, make an application to such Adjudicating Authority for withdrawal of funds
not exceeding the amount contributed by it, for making payment to workmen, protecting the assets of such persons, meeting
the incidental cost during the proceedings or such purposes as may be prescribed.
(4) The Central Government shall, by notification, appoint an administrator to administer the fund in such manner as may be
prescribed.
VL Note : –
Section 225 Power of Central Government to issue directions
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(1)Without prejudice to the foregoing provisions of this Code, the Board shall, in exercise of its powers or the performance of its functions under this Code, be bound by such directions on questions of policy as the Central Government may give in writing to it from time to time: Provided that the Board shall, as far as practicable, be given an opportunity to express its views before any direction is given under this sub-section. (2) The decision of the Central Government as to whether a question is one of policy or not shall be final. VL Note :- |
Section 226 Power of Central Government to supersede Board
“(1) If at any time the Central Government is of opinion –
(a) that on account of grave emergency, the Board is unable to discharge the functions and duties imposed on it by or under the provisions
of this Code; or
(b) that the Board has persistently not complied with any direction issued by the Central Government under this Code or in the discharge of
the functions and duties imposed on it by or under the provisions of this Code and as a result of such noncompliance the financial position
of the Board or the administration of the Board has deteriorated; or
(c) that circumstances exist which render it necessary in the public interest so to do, the Central Government may, by notification,
supersede the Board for such period, not exceeding six months, as may be specified in the notification.
(2) Upon the publication of a notification under sub-section (1) superseding the Board, –
(a) all the members shall, as from the date of supersession, vacate their offices as such;
(b) all the powers, functions and duties which may, by or under the provisions of this Code, be exercised or discharged by or on behalf of
the Board, shall until the Board is reconstituted under sub-section (3), be exercised and discharged by such person or persons as the
Central Government may direct; and (c) all property owned or controlled by the Board shall, until the Board is reconstituted under sub
section (3), vest in the Central Government.
(3) On the expiration of the period of supersession specified in the notification issued under sub-section (1), the Central Government may
reconstitute the Board by a fresh appointment and in such case any person or persons who vacated their offices under clause (a)
of sub-section (2), shall not be deemed disqualified for appointment:
Provided that the Central Government may, at any time, before the expiration of the period of supersession, take action under this sub-section.
(4) The Central Government shall cause a notification issued under sub-section (1) and a full report of any action taken under this section and
the circumstances leading to such action to be laid before each House of Parliament at the earliest.”
VL Note : –
Section 227 Power of Central Government to notify financial sector providers etc
| “Notwithstanding anything to the contrary examined in this Code or any other law for the time being in force, the Central Government may, if it considers necessary, in consultation with the appropriate financial sector regulators, notify financial service providers or categories of financial service providers for the purpose of their insolvency and liquidation proceedings, which may be conducted under this Code, in such manner as may be prescribed.”
VL Note : – |
| “The Board shall prepare, in such form and at such time in each financial year as may be prescribed, its budget for the next financial year, showing the estimated receipts and expenditure of the Board and forward the same to the Central Government”
VL Note : – |
| “(1) The Board shall prepare, in such form and at such time in each financial year as may be prescribed, its annual report, giving a full account of its activities during the previous financial year, and submit a copy thereof to the Central Government. (2) A copy of the report received under sub-section (1) shall be laid, as soon as may be after it is received, before each House of Parliament” VL Note : – |
| “The Board may, by general or special order in writing delegate to any member, officer of the Board or subject to such conditions, if any, as may be specified in the order, such of its powers and functions under this Code (except the powers under section 240 as it may deem necessary.”
VL Note : – |
Section 231 Bar of jurisdiction
| “No civil court shall have jurisdiction in respect of any matter in which the Adjudicating Authority or the Board] is empowered by, or under, this Code to pass any order and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any order passed by such Adjudicating Authority or the Board under this Code.”
VL Note : – |
Section 232 Members, officers and employees of the Board to be public servants
| “The Chairperson, Members, officers and other employees of the Board shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this Code, to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860).”
VL Note : – |
Section 233 Protection of action taken in good faith
| “No suit, prosecution or other legal proceeding shall lie against the Government or any officer of the Government, or the Chairperson, Member, officer or other employee of the Board or an insolvency professional or liquidator for anything which is in done or intended to be done in good faith under this Code or the rules or regulations made thereunder”
VL Note : – |
Section 234 Agreements with foreign countries
| “(1) The Central Government may enter into an agreement with the Government of any country outside India for enforcing the provisions of this Code. (2) The Central Government may, by notification in the Official Gazette, direct that the application of provisions of this Code in relation to assets or property of corporate debtor or debtor, including a personal guarantor of a corporate debtor, as the case may be, situated at any place in a country outside India with which reciprocal arrangements have been made, shall be subject to such conditions as may be specified.” VL Note : – |
Section 235 Letter of request to a country outside India in certain cases
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“(1) Notwithstanding anything contained in this Code or any law for the time being in force if, in the course of insolvency resolution process, or liquidation or bankruptcy proceedings, as the case may be, under this Code, the resolution professional, liquidator or bankruptcy trustee, as the case may be, is of the opinion that assets of the corporate debtor or debtor, including a personal guarantor of a corporate debtor, are situated in a country outside India with which reciprocal arrangements have been made under section 234, he may make an application to the Adjudicating Authority that evidence or action relating to such assets is required in connection with such process or proceeding. (2) The Adjudicating Authority on receipt of an application under sub-section (1) and, on being satisfied that evidence or action relating to assets under sub-section (1) is required in connection with insolvency resolution process or liquidation or bankruptcy proceeding, may issue a letter of request to a court or an authority of such country competent to deal with such request. VL Note : – |
Section 235A Punishment where no specific penalty or punishment is provided
If any person contravenes any of the provisions of this Code or the rules or regulations made thereunder for which no penalty
or punishment is provided in this Code, such person shall be punishable with fine which shall not be less than one lakh
rupees but which may extend to two crore rupees.
VL Note : –
Section 236 Trial of offences by Special Court
“(1) Notwithstanding anything in the Code of Criminal Procedure, 1973(2 of 1974), offences under of this Code shall be tried
by the Special Court established under Chapter XXVIII of the Companies Act, 2013 (18 of 2013).
(2) No Court shall take cognizance of any offence punishable under this Act, save on a complaint made by the Board or the
Central Government or any person authorised by the Central Government in this behalf.
(3) The provisions of the Code of Criminal Procedure, 1973 shall apply to the proceedings before a Special Court and for the
purposes of the said provisions, the Special Court shall be deemed to be a Court of Session and the person conducting a
prosecution before a Special Court shall be deemed to be a Public Prosecutor.
(4) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, in case of a complaint under
sub-section (2), the presence of the person authorised by the Central Government or the Board before the Court trying the
offences shall not be necessary unless the Court requires his personal attendance at the trial. ”
VL Note : –
Section 237 Appeal and revision
“The High Court may exercise, so far as may be applicable, all the powers conferred by Chapters XXIX and XXX of the Code
of Criminal Procedure, 1973 (2 of 1974) on a High Court, as if a Special Court within the local limits of the jurisdiction of the
High Court were a Court of Session trying cases within the local limits of the jurisdiction of the High Court”
VL Note : –
Section 238 Provisions of this Code to override other laws
“The provisions of this Code shall have effect, notwithstanding anything inconsistent therewith contained in any other law for
the time being in force or any instrument having effect by virtue of any such law.”
VL Note : –
“The provisions of the Limitation Act, 1963 (36 of 1963) shall, as far as may be, apply to the proceedings or appeals before
the Adjudicating Authority, the National Company Law Appellate Tribunal, the Debt Recovery Tribunal or the Debt Recovery
Appellate Tribunal, as the case may be.”
VL Note : –
Section 239 Power to make rules
“(1) The Central Government may, by notification, make rules for carrying out the provisions of this Code.
(2) Without prejudice to the generality of the provisions of sub-section (1), the Central Government may make rules for any
of the following matters, namely: —
(a) any other instrument which shall be a financial product under clause (15) of section 3;
(b) other accounting standards which shall be a financial debt under clause (d) of sub-section (8) of section 5;
(c) the form, the manner and the fee for making application before the Adjudicating Authority for initiating corporate
insolvency resolution process by financial creditor under sub-section (2) of section 7;
(d) the form and manner in which demand notice may be made and the manner of delivery thereof to the corporate
debtor under sub-section (1) of section 8;
(e) the form, the manner and the fee for making application before the Adjudicating Authority for initiating corporate
insolvency resolution process by operational creditor under sub-section (2) of section 9;
(ea) other proof confirming that there is no payment of an unpaid operational debt by the corporate debtor or such other
information under clause (e) of sub-section (3) of section 9;
(f) the form, the manner and the fee for making application before the Adjudicating Authority for initiating corporate
insolvency resolution process by corporate applicant under sub-section (2) of section 10;
(g) the persons who shall be relative under clause (ii) of the Explanation to subsection (1) of section 79;
(h) the value of unencumbered single dwelling unit owned by the debtor under clause (e) of sub-section (13) of
section 79;
(i) the value under clause (c), and any other debt under clause (f), of sub-section (14) of section 79;
(j) the form, the manner and the fee for making application for fresh start order under sub-section (3) of section 81;
(k) the particulars of the debtor’s personal details under clause (e) of sub-section (3) of section 81;
(l) the information and documents to support application under sub-section (3) of section 86;
(m) the form, the manner and the fee for making application for initiating the insolvency resolution process by the
debtor under sub-section (6) of section 94;
(n) the form, the manner and the fee for making application for initiating the insolvency resolution process by the
creditor under sub-section (6) of section 95;
(o) the particulars to be provided by the creditor to the resolution professional under sub-section (2) of section 103;
(p) the form and the manner for making application for bankruptcy by the debtor under clause (b) of sub-section (1) of
section 122;
(q) the form and the manner of the statement of affairs of the debtor under subsection (3) of section 122;
(r) the other information under clause (d) of sub-section (1) of section 123;
(s) the form, the manner and the fee for making application for bankruptcy under sub-section (6) of section 123;
(t) the form and the manner in which statement of financial position shall be submitted under sub-section (2) of
section 129;
(u) the matters and the details which shall be included in the public notice under sub-section (2) of section 130;
(v) the matters and the details which shall be included in the notice to the creditors under sub-section (3) of
section 130;
(w) the manner of sending details of the claims to the bankruptcy trustee and other information under sub-sections (1)
and (2) of section 131;
(x) the value of financial or commercial transaction under clause (d) of subsection (1) of section 141;
(y) the other things to be done by a bankrupt to assist bankruptcy trustee in carrying out his functions under clause (d)
of sub-section (1) of section 150;
(z) the manner of dealing with the surplus under sub-section (4) of section 170;
(za) the form and the manner of proof of debt under clause (c) of sub-section (2) of section 171;
(zb) the manner of receiving dividends under sub-section (7) of section 171;
(zc) the particulars which the notice shall contain under sub-section (2) of section 176;
(zd) the salaries and allowances payable to, and other terms and conditions of service of, the Chairperson and members
of the Board under sub-section (5) of section 189;
(ze) the other functions of the Board under clause (u) of sub-section (1) of section 196;
(zf) the other funds under clause (c) of sub-section (1) of section 222;
(zg) the other purposes for which the fund shall be applied under clause (d) of sub-section (2) of section 222;
(zh) the form in which annual statement of accounts shall be prepared under sub-section (1) of section 223;
(zi) the purpose for which application for withdrawal of funds may be made under sub-section (3) of section 224;
(zj) the manner of administering the fund under sub-section (4) of section 224;
(zk) the manner of conducting insolvency and liquidation proceedings under section 227;
(zl) the form and the time for preparing budget by the Board under section 228;
(zm) the form and the time for preparing annual report under sub-section (1) of section 229;
(zn) the time up to which a person appointed to any office shall continue to hold such office under clause (vi) of sub
section (2) of section 243.”
VL Note : –
Section 240 Power to make regulations
“(1) The Board may, by notification, make regulations consistent with this Code and the rules made thereunder, to carry out
the provisions of this Code.
(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any
of the following matters, namely: —
(a) the form and the manner of accepting electronic submission of financial information under sub-clause (a) of clause (9)
of section 3;
(b) the persons to whom access to information stored with the information utility may be provided under sub-clause (d)
of clause (9) of section 3;
(c) the other information under sub-clause (f) of clause (13) of section 3;
(d) the other costs under clause (e) of sub-section (13) of section 5;
(e) the cost incurred by the liquidator during the period of liquidation which shall be liquidation cost under
sub-section (16) of section 5;
(f) the other record or evidence of default under clause (a), and any other information under clause (c), of
sub-section (3) of section 7;
(g) * * *
(h) the period under clause (a) of sub-section (3) of section 10;
(i) the supply of essential goods or services to the corporate debtor under subsection (2) of section 14;
(j) the manner of making public announcement under sub-section (2) of section 15;
(ja) the last date for submission of claims under clause (c) of sub-section (1) of section 15;
(k) the manner of taking action and the restrictions thereof under clause (b) of sub-section (2) of section 17;
(l) the other persons under clause (d) of sub-section (2) of section 17;
(m) the other matters under clause (d) of sub-section (2) of section 17;
(n) the other matters under sub-clause (iv) of clause (a), and the other duties to be performed by the interim resolution
professional under clause (g), of section 18;
(na) the number of creditors within a class of creditors under clause (b) of sub-section (6A) of section 21;
(nb) the remuneration payable to authorised representative under clause (ii) of the proviso to sub-section (6B) of
section 21;
(nc) the manner of voting and determining the voting share in respect of financial debts under sub-section (7) of
section 21;
(o) the persons who shall comprise the committee of creditors, the functions to be exercised such committee and the
manner in which functions shall be exercised under the proviso to sub-section (8) of section 21;
(p) the other electronic means by which the members of the committee of creditors may meet under sub-section (1) of
section 24;
(q) the manner of assigning voting share to each creditor under sub-section (7) of section 24;
(r) the manner of conducting the meetings of the committee of creditors under subsection (8) of section 24;
(s) the manner of appointing accountants, lawyers and other advisors under clause (d) of sub-section (2) of section 25;
(sa) other conditions under clause (h) of sub-section (2) of section 25;
(t) the other actions under clause (k) of sub-section (2) of section 25;
(u) the form and the manner in which an information memorandum shall be prepared by the resolution professional sub
section (1) of section 29;
(v) the other matter pertaining to the corporate debtor under the Explanation to subsection (2) of section 29;
(w) the manner of making payment of insolvency resolution process costs under clause (a), the manner of payment of
debts under clause (b), and the other requirements to which a resolution plan shall conform to under clause (d), of
subsection (2) of section 30;
(wa) other requirements under sub-section (4) of section 30;
(x) the fee for the conduct of the liquidation proceedings and proportion to the value
of the liquidation estate assets under sub-section (8) of section 34;
(y) the manner of evaluating the assets and property of the corporate debtor under clause (c), the manner of selling
property in parcels under clause (f), the manner of reporting progress of the liquidation process under clause (n), and the
other functions to be performed under clause (o), of sub-section (1) of section 35;
(z) the manner of making the records available to other stakeholders under subsection (2) of section 35;
(za) the other means under clause (a) of sub-section (3) of section 36;
(zb) the other assets under clause (e) of sub-section (4) of section 36;
(zc) the other source under clause (g) of sub-section (1) of section 37;
(zd) the manner of providing financial information relating to the corporate debtor under sub-section (2) of section 37;
(ze) the form, the manner and the supporting documents to be submitted by operational creditor to prove the claim
under sub-section (3) of section 38;
(zf) the time within which the liquidator shall verify the claims under sub-section (1) of section 39;
(zg) the manner of determining the value of claims under section 41;
(zh) the manner of relinquishing security interest to the liquidation estate and receiving proceeds from the sale of assets
by the liquidator under clause (a), and the manner of realising security interest under clause (b) of sub-section (1) of
section 52;
(zi) the other means under clause (b) of sub-section (3) of section 52;
(zj) the manner in which secured creditor shall be paid by the liquidator under subsection (9) of section 52;
(zk) the period and the manner of distribution of proceeds of sale under sub-section (1) of section 53;
(zl) the other means under clause (a) and the other information under clause (b) of section 57;
(zm) the conditions and procedural requirements under sub-section (2) of section 59;
(zn) the details and the documents required to be submitted under sub-section (7) of section 95;
(zo) the other matters under clause (c) of sub-section (3) of section 105;
(zp) the manner and form of proxy voting under sub-section (4) of section 107;
(zq) the manner of assigning voting share to creditor under sub-section (2) of section 109; (zr) the manner and form of
proxy voting under sub-section (3) of section 133;
(zs) the fee to be charged under sub-section (1) of section 144;
(zt) the appointment of other officers and employees under sub-section (2), and the salaries and allowances payable to,
and other terms and conditions of service of, such officers and employees of the Board under sub-section (3), of
section 194;
(zu) the other information under clause (i) of sub-section (1) of section 196;
(zv) the intervals in which the periodic study, research and audit of the functioning and performance of the insolvency
professional agencies, insolvency professionals and information utilities under clause (r), and mechanism for disposal of
assets under clause (t), of sub-section (1) of section 196;
(zw) the place and the time for discovery and production of books of account and other documents under clause (i) of
sub-section (3) of section 196;
(zx) the other committees to be constituted by the Board and the other members of such committees under section 197;
(zy) the other persons under clause (b) and clause (d) of section 200;
(zz) the form and the manner of application for registration, the particulars to be contained therein and the fee it shall
accompany under sub-section (1) of section 201;
(zza) the form and manner of issuing a certificate of registration and the terms and conditions thereof, under
sub-section (3) of section 201;
(zzb) the manner of renewal of the certificate of registration and the fee therefor, under sub-section (4) of section 201;
(zzc) the other ground under clause (d) of sub-section (5) of section 201;
(zzd) the form of appeal to the National Company Law Appellate Tribunal, the period within which it shall be filed under
section 202;
(zze) the other information under clause (g) of section 204;
(zzf) the other grounds under Explanation to section 196;
(zzg) the setting up of a governing board for its internal governance and management under clause (e), the curriculum
under clause (l), the manner of conducting examination under clause (m), of section 196;
(zzh) the time within which, the manner in which, and the fee for registration of insolvency professional under
sub-section (1) of section 207;
(zzi) the categories of professionals or persons, the qualifications and experience
and the fields under sub-section (2) of section 207; (zzj) the manner and the conditions subject to which the insolvency
professional shall perform his function under clause (f) of sub-section (2) of section 208;
(zzk) the form and manner in which, and the fee for registration of information utility under sub-section (1) of
section 210;
(zzl) the form and manner for issuing certificate of registration and the terms and conditions thereof, under
sub-section (3) of section 210;
(zzm) the manner of renewal of the certificate of registration and the fee therefor, under sub-section (4) of section 210;
(zzn) the other ground under clause (d) of sub-section (5) of section 210;
(zzo) the form, the period and the manner of filling appeal to the National Company Law Appellate Tribunal under
section 211;
(zzp) the number of independent members under section 212;
(zzq) the services to be provided by information utility and the terms and conditions under section 213;
(zzr) the form and manner of accepting electronic submissions of financial information under clause (b) and clause (c) of
section 214;
(zzs) the minimum service quality standards under clause (d) of section 214;
(zzt) the information to be accessed and the manner of accessing such information under clause (f) of section 214;
(zzu) the statistical information to be published under clause (g) of section 214;
(zzv) the form, the fee and the manner for submitting or accessing information under sub-section (1) of section 215;
(zzw) the form and manner for submitting financial information and information
relating to assets under sub-section (2) of section 215;
(zzx) the manner and the time within which financial information may be updated or modified or rectified under
section 216;
(zzy) the form, manner and time of filing complaint under section 217;
(zzz) the time and manner of carrying out inspection or investigation under subsection (2) of section 218;
(zzza) the manner of carrying out inspection of insolvency professional agency or insolvency professional or information
utility and the time for giving reply under section 219;
(zzzb) the procedure for claiming restitution under sub-section (6), the period within which such restitution may be
claimed and the manner in which restitution of amount may be made under sub-section (7) of section 220;
(zzzc) the other funds of clause (c) of sub-section (1) of section 222.
VL Note :
Section 240A Application of this Code to Micro, Small and Medium enterprises
(1) Notwithstanding anything to the contrary contained in this Code, the provisions of clauses (c) and (h) of section 29A shall
not apply to the resolution applicant in respect of corporate insolvency resolution process of any micro, small and medium
enterprises.
(2) Subject to sub-section (1), the Central Government may, in the public interest, by notification, direct that any of the
provisions of this Code shall—
(a) not apply to micro, small and medium enterprises; or
(b) apply to micro, small and medium enterprises, with such modifications as may be specified in the notification.
(3) A draft of every notification proposed to be issued under subsection (2), shall be laid before each House of Parliament,
while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive
sessions.
(4) If both Houses agree in disapproving the issue of notification or both Houses agree in making any modification in the
notification, the notification shall not be issued or shall be issued only in such modified form as may be agreed upon by both
the Houses, as the case may be.
(5) The period of thirty days referred to in sub-section (3) shall not include any period during which the House referred to in
sub-section (4) is prorogued or adjourned for more than four consecutive days.
(6) Every notification issued under this section shall be laid, as soon as may be after it is issued, before each House of Parliament.
Explanation.— For the purposes of this section, the expression “”micro, small and medium enterprises”” means any class or
classes of enterprises classified as such under sub-section (1) of section 7 of the Micro, Small and Medium Enterprises
Development Act, 2007 (27 of 2006).
VL Note : –
Section 241 Rules and Regulations to be laid before Parliament
“Every rule and every regulation made under this Code shall be laid, as soon as may be after it is made, before each House
of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more
successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions
aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or
regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no
effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of
anything previously done under that rule or regulation.”
VL Note : –
Section 242 Power to remove difficulties
“(1) If any difficulty arises in giving effect to the provisions of this Code, the Central Government may, by order, published in
the Official Gazette, make such provisions not inconsistent with the provisions of this Code as may appear to be necessary for
removing the difficulty:
Provided that no order shall be made under this section after the expiry of five years from the commencement of this Code.
(2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament”
VL Note : –
Section 243 Repeal of certain enactments and savings
“(1) The Presidency Towns Insolvency Act, 1909 (3 of 1909) and the Provincial Insolvency Act, 1920 (5 of 1920) are hereby
repealed.
(2) Notwithstanding the repeal under sub-sections (1) –
(i) all proceedings pending under and relating to the Presidency Towns Insolvency Act 1909, and the Provincial
Insolvency Act 1920 immediately before the commencement of this Code shall continue to be governed under the
aforementioned Acts and be heard and disposed of by the concerned courts or tribunals, as if the aforementioned Acts
have not been repealed;
(ii) any order, rule, notification, regulation, appointment, conveyance, mortgage, deed, document or agreement made,
fee directed, resolution passed, direction given, proceeding taken, instrument executed or issued, or thing done under or
in pursuance of any repealed enactment shall, if in force at the commencement of this Code, continue to be in force, and
shall have effect as if the aforementioned Acts have not been repealed;
(iii) anything done or any action taken or purported to have been done or taken, including any rule, notification,
inspection, order or notice made or issued or any appointment or declaration made or any operation undertaken or any
direction given or any proceeding taken or any penalty, punishment, forfeiture or fine imposed under the repealed
enactments shall be deemed valid;
(iv) any principle or rule of law, or established jurisdiction, form or course of pleading, practice or procedure or existing
usage, custom, privilege, restriction or exemption shall not be affected, notwithstanding that the same respectively may
have been in any manner affirmed or recognised or derived by, in, or from, the repealed enactments;
(v) any prosecution instituted under the repealed enactments and pending immediately before the commencement of
this Code before any court or tribunal shall, subject to the provisions of this Code, continue to be heard and disposed of
by the concerned court or tribunal;
(vi) any person appointed to any office under or by virtue of any repealed enactment shall continue to hold such office
until such time as may be prescribed; and
(vii) any jurisdiction, custom, liability, right, title, privilege, restriction, exemption, usage, practice, procedure or other
matter or thing not in existence or in force shall not be revised or restored.
(3) The mention of particular matters in sub-section (2) shall not be held to prejudice the general application of section 6 of
the General Clauses Act, 1897 (10 of 1897) with regard to the effect of repeal of the repealed enactments or provisions of
the enactments mentioned in the Schedule.”
VL Note : –
Section 244 Transitional provisions
“(1) Until the Board is constituted or a financial sector regulator is designated under section 195, as the case may be, the
powers and functions of the Board or such designated financial sector regulator, including its power to make regulations, shall
be exercised by the Central Government.
(2) Without prejudice to the generality of the power under sub-section (1), the Central Government may by regulations
provide for the following matters: –
(a) recognition of persons, categories of professionals and persons having such qualifications and experience in the field
of finance, law, management or insolvency as it deems necessary, as insolvency professionals and insolvency
professional agencies under this Code;
(b) recognition of persons with technological, statistical, and data protection capability as it deems necessary, as
information utilities under this Code; and
(c) conduct of the corporate insolvency resolution process, insolvency resolution process, liquidation process, fresh start
process and bankruptcy process under this Code.”
VL Note : –
Section 245 Amendments of Act 9 of 1932
“The Indian Partnership Act, 1932 shall be amended in the manner specified in the First Schedule.”
VL Note : –
Section 246 Amendments of Act 1 of 1944
“The Central Excise Act, 1944 shall be amended in the manner specified in the Second Schedule.”
VL Note : –
Section 247 Amendments of Act 43 of 1961
“The Income – Tax Act, 1961 shall be amended in the manner specified in the Third
Schedule.” VL Note : –
Section 248 Amendments of Act 52 of 1962
“The Customs Act, 1962 shall be amended in the manner specified in the Fourth Schedule.”
VL Note : –
Section 249 Amendments of Act 51 of 1993
“The Recovery of Debts due to Banks and Financial Institutions Act, 1993 shall be amended in the manner specified in the
Fifth Schedule. ”
VL Note : –
Section 250 Amendments of Act 32 of 1994
The Finance Act, 1994 shall be amended in the manner specified in the Sixth Schedule.
VL Note : –
Section 251 Amendments of Act 54 of 2002
“The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 shall be amended
in the manner specified in the Seventh Schedule”
VL Note : –
Section 252 Amendments of Act 1of 2004
“The Sick Industrial Companies (Special Provisions) Repeal Act, 2003 shall be amended in the manner specified in the Eighth
Schedule. ”
VL Note : –
Section 253 Amendments of Act 51of 2007
“The Payment and Settlement Systems Act, 2007 shall be amended in the manner specified in the Ninth Schedule. ”
VL Note : –
Section 254 Amendments of Act 6 of 2009
“The Limited Liability Partnership Act, 2008 shall be amended in the manner specified in the Tenth Schedule.”
VL Note : –
Section 255 Amendments of Act 18 of 2013
“The Companies Act, 2013 shall be amended in the manner specified in the Eleventh Schedule.”
VL Note : –