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CMA Final · Corporate and Economic Laws · Insolvency and Bankruptcy Code, 2016

The Insolvency and Bankruptcy Code, 2016 provides that different dates may be appointed for different provisions. A provision of the Code refers to 'the commencement of this Code'. How is that reference to be construed?

Under the proviso to Section 1(3), when different dates are appointed for different provisions, a reference in any provision to the commencement of the Code is read as a reference to the commencement of that particular provision, not a single common date.

  1. AAs a reference to 5 August 2016, the date of first notification, for every provision
  2. BAs a reference to the commencement of that particular provisionCorrect
  3. CAs a reference to 1 December 2016, when the corporate insolvency process began
  4. DAs a reference to the date on which the Board was constituted

Explanation

The proviso to Section 1(3) says that where different dates are appointed for different provisions, any reference in a provision to commencement of the Code is construed as a reference to the commencement of that provision. The fixed-date options ignore this proviso and are wrong.

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