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CS Professional · Insolvency and Bankruptcy - Law and Practice · Introduction to Insolvency and Bankruptcy Code

A law student reads the Insolvency and Bankruptcy Code, 2016 and notes that it was brought into force in stages rather than on a single day. Which provision of the Code permits this?

Section 1(3) allows the Central Government to notify the commencement date, and its proviso permits different dates for different provisions. That is why the Code was brought into force in phases, starting in August 2016, rather than all at once.

  1. ASection 1(3): the Central Government may notify the commencement date, and different dates may be appointed for different provisionsCorrect
  2. BSection 1(2): the Code extends to the whole of India and so applies on one date everywhere
  3. CSection 224: the Insolvency and Bankruptcy Fund decides the dates of commencement
  4. DSection 203: the governing board of an insolvency professional agency fixes the commencement date

Explanation

Section 1(3) lets the Central Government appoint the date of commencement by notification in the Official Gazette. Its proviso allows different dates for different provisions. Section 1(2) deals only with territorial extent, not timing.

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