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

Under the commencement clause of the Insolvency and Bankruptcy Code, 2016, how may the Code or its provisions be brought into force?

The Code comes into force on the date the Central Government appoints by Official Gazette notification. Different dates may be appointed for different provisions, and a reference to commencement in a provision means commencement of that provision.

  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, for all provisions together
  3. COn a date fixed by the Insolvency and Bankruptcy Board of India by circular, for all provisions together
  4. DOn the date the National Company Law Tribunal first sits, for all provisions together

Explanation

Section 1(3) says the Code comes into force on the date the Central Government appoints by notification in the Official Gazette. The proviso allows different dates for different provisions. The Board has no power to fix the commencement date, so the option naming it is wrong.

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