Short title, extent and commencement
Section 1 of the Insolvency and Bankruptcy Code, 2016 deals with short title, extent and commencement. This Code may be called the Insolvency and Bankruptcy Code, 2016. The Act was enacted on 28 May 2016.
(1) This Code may be called the Insolvency and Bankruptcy Code, 2016.
(2) It extends to the whole of India:
1* * * * *.
(3) It shall come into force on such date2 as the Central Government may, by notification in the Official Gazette, appoint:
Provided that different dates may be appointed for different provisions of this Code and any reference in any such provision to the commencement of this Code shall be construed as a reference to the commencement of that provision.
Section 1, The Insolvency and Bankruptcy Code, 2016 (Act 31 of 2016).
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Insolvency and Bankruptcy Board of India vs Rajender Rao Juvvadi
Court's Decision & Legal Precedent
The Central Government acted within its powers under Section 1(3) of the Insolvency and Bankruptcy Code, 2016 in issuing the impugned notification dated 15.11.2019 bringing into force provisions of the Code selectively for personal guarantors to corporate debtors. The notification is a valid exercise of conditional legislation as: (1) the 2018 Amendment Act provided sufficient legislative guidance by creating a separate category of personal guarantors and amending Section 60 to provide unified adjudication; (2) personal guarantors form a distinct category warranting differential treatment due to their intrinsic connection with corporate debtors; (3) the notification operationalizes existing provisions in accordance with Parliamentary intent; and (4) approval of a resolution plan for a corporate debtor does not discharge the personal guarantor's liability which arises from an independent contract of guarantee and is not discharged by involuntary discharge of the principal debtor by operation of law.
On this section: The Court examined the scope of power conferred on Central Government to bring provisions into force on different dates, the definition and classification of personal guarantors as distinct from other individuals, the unified adjudication framework through NCLT, the binding effect of resolution plans on guarantors, and the applicability of Part III provisions to personal guarantors
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Mahendra Kumar Rajpal vs Ministry of Corporate Affairs
Court's Decision & Legal Precedent
The Central Government, acting under Section 1(3) of the Insolvency and Bankruptcy Code, 2016, has the power to bring into force different provisions of the Code at different times for different categories of persons. The 2018 Amendment Act, by creating personal guarantors as a distinct category in Section 2(e) and mandating the NCLT as the adjudicating authority in Section 60, provided sufficient legislative guidance for the Central Government to selectively apply the Code to personal guarantors to corporate debtors. The notification dated 15.11.2019 is a valid exercise of conditional legislation, not an instance of excessive delegation or impermissible legislative exercise. Personal guarantors, though individuals, are intrinsically connected to corporate debtors and warrant unified adjudication before the NCLT. The approval of a corporate resolution plan does not discharge the personal guarantor's liability, which remains enforceable as an independent contractual obligation under the Indian Contract Act, 1872.
On this section: Power of Central Government to bring provisions into force on different dates; whether this power extends to selective application to sub-categories of persons
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Sanjay Singal vs Union of India
Court's Decision & Legal Precedent
The impugned notification dated 15.11.2019 bringing into force provisions of the Insolvency and Bankruptcy Code, 2016 only in so far as they relate to personal guarantors to corporate debtors is a valid exercise of power conferred by Section 1(3) of the Code. The Central Government acted within its constitutional powers in selectively applying Code provisions to personal guarantors as a distinct category of individuals, as this classification was created by Parliament through the 2018 Amendment Act which amended Section 2(e) and Section 60 to provide unified adjudication of corporate debtors and personal guarantors before the NCLT. The notification does not constitute impermissible delegation of legislative power or excessive modification of statutory provisions, but rather operationalizes the Parliamentary intent to treat personal guarantors differently from other individuals due to their intrinsic connection with corporate debtors. Approval of a resolution plan relating to a corporate debtor does not operate to discharge the liabilities of personal guarantors to such corporate debtors, as the guarantor's liability is co-extensive with the principal debtor and continues notwithstanding involuntary discharge of the principal debtor by operation of law.
On this section: Power of Central Government to bring provisions into force on such date as it may appoint, with flexibility to appoint different dates for different provisions
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Lalit Kumar Jain vs Union of India
Court's Decision & Legal Precedent
The Central Government, in exercise of powers conferred by Section 1(3) of the Insolvency and Bankruptcy Code, 2016, has authority to bring into force different provisions of the Code at different times for different categories of persons, including personal guarantors to corporate debtors. The 2018 Amendment Act, by creating distinct classification of personal guarantors under Section 2(e) and amending Section 60, provided sufficient parliamentary guidance for such selective application. The impugned notification, which brings into force provisions of Part III of the Code only in relation to personal guarantors to corporate debtors, is valid exercise of power conferred by Section 1(3) and does not amount to excessive delegation or modification of Code provisions. Furthermore, approval of a resolution plan for a corporate debtor does not discharge the personal guarantee liabilities of guarantors, as such liabilities arise from independent contracts of guarantee and are not discharged by involuntary discharge of principal debtor by operation of law.
On this section: Power of Central Government to bring provisions into force on different dates; proviso allows different dates for different provisions
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… the writ petitioners challenged the impugned notification as having been issued in excess of the authority conferred upon the Union of India (through the Ministry of Corporate Affairs) which has been arrayed in all these proceedings as parties. The petitioners contend that the power conferred upon the Union under Section 1(3) of the Insolvency and Bankruptcy Code, 2016 (hereafter referred to as "the Code") could not have been resorted to in the manner as to extend the provisions of the Code only as far as they relate to personal guarantors of corporate debtors. The impugned notification brought into force Section 2(e), Section 78 …
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… the writ petitioners challenged the impugned notification as having been issued in excess of the authority conferred upon the Union of India (through the Ministry of Corporate Affairs) which has been arrayed in all these proceedings as parties. The petitioners contend that the power conferred upon the Union under Section 1(3) of the Insolvency and Bankruptcy Code, 2016 (hereafter referred to as "the Code") could not have been resorted to in the manner as to extend the provisions of the Code only as far as they relate to personal guarantors of corporate debtors. The impugned notification brought into force Section 2(e), Section 78 …
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… the writ petitioners challenged the impugned notification as having been issued in excess of the authority conferred upon the Union of India (through the Ministry of Corporate Affairs) which has been arrayed in all these proceedings as parties. The petitioners contend that the power conferred upon the Union under Section 1(3) of the Insolvency and Bankruptcy Code, 2016 (hereafter referred to as "the Code") could not have been resorted to in the manner as to extend the provisions of the Code only as far as they relate to personal guarantors of corporate debtors. The impugned notification brought into force Section 2(e), Section 78 …
Made under this section, and citing it
11 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
- Notification of provisions under the Insolvency and Bankruptcy Code, 2016 relating to Personal Guarantors to Corporate Debtor (dated 15.11.2019)Notification 2019
- Notification under IBC (16th August, 2019)Notification 2019
- Applicability of provisions of clause (a) to clause (d) of section 2 of the Code relating to voluntary liquidation or bankruptcyNotification 2017
- Commencement of Section for Voluntary Liquidation (S-59) and Information Utilities (209-2016) And S-234, 235 (Agreement with foreign Countries) under IBC, 2016Notification 2017
- Commencement of sections related to Fast Track Corporate Insolvency Resolution Process and notification u/s 55(2) of the CodeNotification 2017
- Commencement of Sections 188 to 194 under Chapter I of Part IV of the CodeNotification 2016
- Commencement of Sections related to Corporate Insolvency.Notification 2016
- Commencement of Sections under Chapter II, Chapter VII of Part IV and sections under Part VNotification 2016
- Commencement of Sections under Chapter III, Chapter IV, Chapter VI of Part IV and sections under Part V.Notification 2016
- Commencement of Sections under Chapter VII of Part IV and sections under Part V of the CodeNotification 2016
- Commencement of section 33 to 54 (both inclusive) under the CodeNotification 2016
Another 1 instrument names this provision in its title or its text without being made under it.
Questions about Section 1
What have the courts held on Section 1 of the Insolvency and Bankruptcy Code?
Insolvency and Bankruptcy Board of India vs Rajender Rao Juvvadi (21 May 2021) is the leading judgment on this section among those set out below: The Court examined the scope of power conferred on Central Government to bring provisions into force on different dates, the definition and classification of personal guarantors as distinct from other individuals, the unified adjudication framework through NCLT, the binding effect of resolution plans on guarantors, and the applicability of Part III provisions to personal guarantors. Another 3 judgments on this section are set out below, all of them from the Supreme Court.
How do I find court cases under Section 1 of the Insolvency and Bankruptcy Code?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Insolvency and Bankruptcy Code 1, section 1 Insolvency and Bankruptcy Code, section 1 of the Insolvency and Bankruptcy Code. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 4 reported judgments on this section are set out on this page, beginning with Insolvency and Bankruptcy Board of India vs Rajender Rao Juvvadi (21 May 2021).
What should I read with Section 1 of the Insolvency and Bankruptcy Code, and has it changed?
The rules and notifications made under it are where it actually bites, and there are 11: most recently Notification of provisions under the Insolvency and Bankruptcy Code, 2016 relating to Personal Guarantors to Corporate Debtor (dated 15.11.2019) (2019), then Notification under IBC (16th August, 2019) (2019), and 9 more.
When was Section 1 of the Insolvency and Bankruptcy Code enacted?
Section 1 of the Insolvency and Bankruptcy Code, cited as Insolvency and Bankruptcy Code 1, was enacted on 28 May 2016 as Act 31 of 2016. It is in force as at the date shown on this page.
Other sections of this Act
- 240. Power to make regulations2349 words
- 5. Definitions2326 words
- 3. Definitions1381 words
- 29A. Person not eligible to be resolution applicant1152 words
- 239. Power to make rules963 words
- 196. Powers and functions of Board942 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.