The Insolvency and Bankruptcy Code, 2016
A unified framework for corporate insolvency, individual insolvency, and bankruptcy — with NCLT, IPs, and a 330-day resolution clock.
- Sections
- 255
- Chapters
- 7
- Tier
- Tier 3
In one line
What this Act says
A 330-day, time-bound process to resolve stressed companies and individuals through the NCLT and insolvency professionals — or liquidate them.
Penalties
What happens if you break it
Concealment of property / fraud by a corporate debtor's officer
§68Imprisonment 3 – 5 years and fine ₹1 lakh – ₹1 crore.
Transactions defrauding creditors
§69Imprisonment 1 – 5 years and fine ₹1 lakh – ₹1 crore.
Furnishing false information in application
§75, §77Imprisonment 3 – 5 years and fine ₹1 lakh – ₹1 crore.
Insolvency professional discharging duties fraudulently
§70Imprisonment up to 6 months and/or fine ₹1 lakh – ₹5 lakh.
Contravention with no specific punishment
§235AFine ₹1 lakh – ₹2 crore.
Headline offences only — not exhaustive. For the full text and every section, open the source PDF or the official link below.
Key Sections & Penalties
Insolvency & Bankruptcy Code at a Glance
| Section | Type | Provision | Applicability | Details / Penalty |
|---|---|---|---|---|
| §7 | structural | Initiation of CIRP by financial creditor | - | Administrative / Structural |
| §9 | structural | Initiation of CIRP by operational creditor | - | Administrative / Structural |
| §12 | structural | Time-limit for completion of insolvency resolution process | - | Administrative / Structural |
| §14 | structural | Moratorium | - | Administrative / Structural |
| §29A | structural | Persons not eligible to be resolution applicant | - | Administrative / Structural |
Maximum punishments as prescribed by the Act. Actual sentencing depends on facts, prior convictions and judicial discretion.
Sources
Read the Act yourself
We always show you the local source PDF and at least one verifiable online reference, so you can check anything we say.
Source PDF
Insolvency & Bankruptcy Code (IBC), 2016.pdf
Full text · opens in new tab
Reference
Wikipedia
en.wikipedia.org · opens in new tab
About this Act
Quick facts
- Year
- 2016
- Sections
- 255
- Chapters
- 7
- Tier
- Tier 3