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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, which statement about its extent and commencement is correct?

The Code extends to the whole of India and comes into force on the date the Central Government appoints by Gazette notification. Different dates may be appointed for different provisions, so commencement was staggered rather than uniform.

  1. AIt extends to the whole of India and comes into force on the date the Central Government notifies in the Official GazetteCorrect
  2. BIt extends only to companies registered in India and commences on the date of Presidential assent
  3. CIt extends to the whole of India and all its provisions commenced together on a single date
  4. DIt extends to India except Union Territories and commences on 1 April each year

Explanation

Section 1 says the Code extends to the whole of India and comes into force on such date as the Central Government appoints by notification in the Official Gazette. The proviso allows different dates for different provisions, so the option claiming a single date for all provisions is wrong.

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