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Section 254

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Chapter IPreliminary

1Short title, extent and commencement
2Application
3Definitions

Chapter IIChapter I Preliminary · Chapter II Corporate Insolvency Resolution Process · Chapter III Liquidation Process · Chapter Iii-a Pre-packaged Insolvency Resolution Process · Chapter IV Fast Track Corporate Insolvency Resolution Process · Chapter V Voluntary Liquidation of Corporate Persons · Chapter VII Offences and Penalties · Chapter VI Adjudicating Authority for Corporate Persons

Chapter I Preliminary

4Application of this Part
5Definitions

Chapter II Corporate Insolvency Resolution Process

6Persons who may initiate corporate insolvency resolution process
7Initiation of corporate insolvency resolution process by financial creditor
8Insolvency resolution by operational creditor
9Application for initiation of corporate insolvency resolution process by operational creditor
10Initiation of corporate insolvency resolution process by corporate applicant
10ASuspension of initiation of corporate insolvency resolution process
11Persons not entitled to make application
11ADisposal of applications under section 54C and under section 7 or section 9 or section 10
12Time-limit for completion of insolvency resolution process
12AWithdrawal of application admitted under section 7, 9 or 10
13Declaration of moratorium and public announcement
14Moratorium
15Public announcement of corporate insolvency resolution process
16Appointment and tenure of interim resolution professional
17Management of affairs of corporate debtor by interim resolution professional
18Duties of interim resolution professional
19Personnel to extend co-operation to interim resolution professional
20Management of operations of corporate debtor as going concern
21Committee of creditors
22Appointment of resolution professional
23Resolution professional to conduct corporate insolvency resolution process
24Meeting of committee of creditors
25Duties of resolution professional
25ARights and duties of authorised representative of financial creditors
26Application for avoidance of transactions not to affect proceedings
27Replacement of resolution professional by committee of creditors
28Approval of committee of creditors for certain actions
29Preparation of information memorandum
29APerson not eligible to be resolution applicant
30Submission of resolution plan
31Approval of resolution plan
32Appeal
32ALiability for prior offences, etc

Chapter III Liquidation Process

33Initiation of liquidation
34Appointment of liquidator and fee to be paid
35Powers and duties of liquidator
36Liquidation estate
37Powers of liquidator to access information
38Consolidation of claims
39Verification of claims
40Admission or rejection of claims
41Determination of valuation of claims
42Appeal against the decision of liquidator
43Preferential transactions and relevant time
44Orders in case of preferential transactions
45Avoidance of undervalued transactions
46Relevant period for avoidable transactions
47Application by creditor in cases of undervalued transactions
48Order in cases of undervalued transactions
49Transactions defrauding creditors
50Extortionate credit transactions
51Orders of Adjudicating Authority in respect of extortionate credit transactions
52Secured creditor in liquidation proceedings
53Distribution of assets
54Dissolution of corporate debtor

Chapter Iii-a Pre-packaged Insolvency Resolution Process

54-ICommittee of creditors
54-OInitiation of corporate insolvency resolution process
54ACorporate debtors eligible for pre-packaged insolvency resolution process
54BDuties of insolvency professional before initiation of pre-packaged insolvency resolution process
54CApplication to initiate pre-packaged insolvency resolution process
54DTime-limit for completion of pre-packaged insolvency resolution process
54EDeclaration of moratorium and public announcement during pre-packaged insolvency resolution process
54FDuties and powers of resolution professional during pre-packaged insolvency resolution process
54GList of claims and preliminary information memorandum
54HManagement of affairs of corporate debtor
54JVesting management of corporate debtor with resolution professional
54KConsideration and approval of resolution plan
54LApproval of resolution plan
54MAppeal against order under section 54L
54NTermination of pre-packaged insolvency resolution process
54PApplication of provisions of Chapters II, III, VI and VII to this Chapter

Chapter IV Fast Track Corporate Insolvency Resolution Process

55Fast track corporate insolvency resolution process
56Time period for completion of fast track corporate insolvency resolution process
57Manner of initiating fast track corporate insolvency resolution process
58Applicability of Chapter II to this Chapter

Chapter V Voluntary Liquidation of Corporate Persons

59Voluntary liquidation of corporate persons

Chapter VII Offences and Penalties

68Punishment for concealment of property
69Punishment for transactions defrauding creditors
70Punishment for misconduct in course of corporate insolvency resolution process
71Punishment for falsification of books of corporate debtor
72Punishment for wilful and material omissions from statements relating to affairs of corporate debtor
73Punishment for false representations to creditors
74Punishment for contravention of moratorium or the resolution plan
75Punishment for false information furnished in application
76Punishment for non-disclosure of dispute or payment of debt by operational creditor
77Punishment for providing false information in application made by corporate debtor
77APunishment for offences related to pre-packaged insolvency resolution process

Chapter VI Adjudicating Authority for Corporate Persons

60Adjudicating Authority for corporate persons
61Appeals and Appellate Authority
62Appeal to Supreme Court
63Civil court not to have jurisdiction
64Expeditious disposal of applications
65Fraudulent or malicious initiation of proceedings
66Fraudulent trading or wrongful trading
67Proceedings under section 66
67AFraudulent management of corporate debtor during pre-packaged insolvency resolution process

Chapter IIIChapter I Preliminary · Chapter II Fresh Start Process · Chapter III Insolvency Resolution Process · Chapter V Administration and Distribution of the Estate of the Bankrupt · Chapter VI Adjudicating Authority for Individuals and Partnership Firms · Chapter VII Offences and Penalties

Chapter I Preliminary

78Application
79Definitions

Chapter II Fresh Start Process

80Eligibility for making an application
81Application for fresh start order
82Appointment of resolution professional
83Examination of application by resolution professional
84Admission or rejection of application by Adjudicating Authority
85Effect of admission of application
86Objections by creditor and their examination by resolution professional
87Application against decision of resolution professional
88General duties of debtor
89Replacement of resolution professional
90Directions for compliances of restrictions, etc
91Revocation of order admitting application
92Discharge order
93Standard of conduct

Chapter III Insolvency Resolution Process

94Application by debtor to initiate insolvency resolution process
95Application by creditor to initiate insolvency resolution process
96Interim moratorium
97Appointment of resolution professional
98Replacement of resolution professional
99Submission of report by resolution professional
100Admission or rejection of application
101Moratorium
102Public notice and claims from creditors
103Registering of claims by creditors
104Preparation of list of creditors
105Repayment plan
106Report of resolution professional on repayment plan
107Summoning of meeting of creditors
108Conduct of meeting of creditors
109Voting rights in meeting of creditors
110Rights of secured creditors in relation to repayment plan
111Approval of repayment plan by creditors
112Report of meeting of creditors on repayment plan
113Notice of decisions taken at meeting of creditors
114Order of Adjudicating Authority on repayment plan
115Effect of order of Adjudicating Authority on repayment plan
116Implementation and supervision of repayment plan
117Completion of repayment plan
118Repayment plan coming to end prematurely
119Discharge order
120Standard of conduct
121Application for bankruptcy
122Application by debtor
123Application by creditor
124Effect of application
125Appointment of insolvency professional as bankruptcy trustee
126Bankruptcy order
127Validity of bankruptcy order
128Effect of bankruptcy order
129Statement of financial position
130Public notice inviting claims from creditors
131Registration of claims
132Preparation of list of creditors
133Summoning of meeting of creditors
134Conduct of meeting of creditors
135Voting rights of creditors
136Administration and distribution of estate of bankruptcy
137Completion of administration
138Discharge order
139Effect of discharge
140Disqualification of bankrupt
141Restrictions on bankrupt
142Modification or recall of bankruptcy order
143Standard of conduct
144Fees of bankruptcy trustee
145Replacement of bankruptcy trustee
146Resignation by bankruptcy trustee
147Vacancy in office of bankruptcy trustee
148Release of bankruptcy trustee

Chapter V Administration and Distribution of the Estate of the Bankrupt

149Functions of bankruptcy trustee
150Duties of bankrupt towards bankruptcy trustee
151Rights of bankruptcy trustee
152General powers of bankruptcy trustee
153Approval of creditors for certain acts
154Vesting of estate of bankrupt in bankruptcy trustee
155Estate of bankrupt
156Delivery of property and documents to bankruptcy trustee
157Acquisition of control by bankruptcy trustee
158Restrictions on disposition of property
159After-acquired property of bankrupt
160Onerous property of bankrupt
161Notice to disclaim onerous property
162Disclaimer of leaseholds
163Challenge against disclaimed property
164Undervalued transactions
165Preference transactions
166Effect of order
167Extortionate credit transactions
168Obligations under contracts
169Continuance of proceedings on death of bankrupt
170Administration of estate of deceased bankrupt
171Proof of debt
172Proof of debt by secured creditors
173Mutual credit and set-off
174Distribution of interim dividend
175Distribution of property
176Final dividend
177Claims of creditors
178Priority of payment of debts

Chapter VI Adjudicating Authority for Individuals and Partnership Firms

179Adjudicating authority for individuals and partnership firms
180Civil court not to have jurisdiction
181Appeal to Debt Recovery Appellate Tribunal
182Appeal to Supreme Court
183Expeditious disposal of applications

Chapter VII Offences and Penalties

184Punishment for false information, etc., by creditor in insolvency resolution process
185Punishment for contravention of provisions
186Punishment for false information, concealment, etc., by bankrupt
187Punishment for certain actions

Chapter IVChapter I the Insolvency and Bankruptcy Board of India · Chapter II Powers and Functions of the Board · Chapter III Insolvency Professional Agencies · Chapter IV Insolvency Professionals · Chapter V Information Utilities · Chapter VI Inspection and Investigation · Chapter VII Finance, Accounts and Audit

Chapter I the Insolvency and Bankruptcy Board of India

188Establishment and incorporation of Board
189Constitution of Board
190Removal of member from office
191Powers of Chairperson
192Meetings of Board
193Member not to participate in meetings in certain cases
194Vacancies, etc., not to invalidate proceedings of Board, Officers and employees of Board
195Power to designate financial sector regulator

Chapter II Powers and Functions of the Board

196Powers and functions of Board
197Constitution of advisory committee, executive committee or other committee
198Condonation of delay

Chapter III Insolvency Professional Agencies

199No person to function as insolvency professional agency without valid certificate of registration
200Principles governing registration of insolvency professional agency
201Registration of insolvency professional agency
202Appeal to National Company Law Appellate Tribunal
203Governing Board of insolvency professional agency
204Functions of insolvency professional agencies
205Insolvency professional agencies to make bye-laws

Chapter IV Insolvency Professionals

206Enrolled and registered persons to act as insolvency professionals
207Registration of insolvency professionals
208Functions and obligations of insolvency professionals

Chapter V Information Utilities

209No person to function as information utility without certificate of registration
210Registration of information utility
211Appeal to National Company Law Appellate Tribunal
212Governing Board of information utility
213Core services, etc., of information utilities
214Obligations of information utility
215Procedure for submission, etc., of financial information
216Rights and obligations of persons submitting financial information

Chapter VI Inspection and Investigation

217Complaints against insolvency professional agency or its member or information utility
218Investigation of insolvency professional agency or its member or information utility
219Show cause notice to insolvency professional agency or its member or information utility
220Appointment of disciplinary committee

Chapter VII Finance, Accounts and Audit

221Grants by Central Government
222Board?s Fund
223Accounts and audit

Chapter VMiscellaneous

224Insolvency and Bankruptcy Fund
225Power of Central Government to issue directions
226Power of Central Government to supersede Board
227Power of Central Government to notify financial service providers, etc
228Budget
229Annual report
230Delegation
231Bar of jurisdiction
232Members, officers and employees of Board to the public servants
233Protection of action taken in good faith
234Agreements with foreign countries
235Letter of request to a country outside India in certain cases
235APunishment where no specific penalty or punishment is provided
236Trial of offences by Special Court
237Appeal and revision
238Provisions of this Code to override other laws
238ALimitation
239Power to make rules
240Power to make regulations
240AApplication of this Code to micro, small and medium enterprises
241Rules and regulations to be laid before Parliament
242Power to remove difficulties
243Repeal of certain enactments and savings
244Transitional provisions
245Amendments of Act 9 of 1932
246Amendments of Act 1 of 1944
247Amendments of Act 43 of 1961
248Amendments of Act 52 of 1962
249Amendments of Act 51 of 1993
250Amendments of Act 32 of 1994
251Amendments of Act 54 of 2002
252Amendments of Act 1 of 2004
253Amendments of Act 51 of 2007
254Amendments of Act 6 of 2009
255Amendments of Act 18 of 2013

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IBC 254Chapter V · Miscellaneous

Section 254 · Amendments of Act 6 of 2009

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The Limited Liability Partnership Act, 2008 shall be amended in the manner specified in the Tenth Schedule.

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