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

Under Section 1 of the Insolvency and Bankruptcy Code, 2016, on what basis does the Code come into force?

The Code comes into force on the date the Central Government appoints by Official Gazette notification, and different dates may be appointed for different provisions. A reference to commencement of the Code in any provision means commencement of that provision, so staggered commencement is expressly permitted.

  1. AOn such date as the Central Government appoints by notification in the Official Gazette, with different dates possible for different provisionsCorrect
  2. BAutomatically on the date the President gives assent to the Code
  3. COn 1 April following the year of enactment, for all provisions together
  4. DOn the date fixed by the Insolvency and Bankruptcy Board of India by its own order

Explanation

Section 1(3) says the Code comes into force on such date as the Central Government may appoint by notification in the Official Gazette. The proviso allows different dates for different provisions. The option of a single fixed date for all provisions is wrong because the proviso permits staggered commencement.

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