Application of this Code to micro, small and medium enterprises
Section 240A of the Insolvency and Bankruptcy Code, 2016 deals with application of this Code to micro, small and medium enterprises. Notwithstanding anything to the contrary contained in this Code, the provisions of clauses (c) and (h) of section 29A shall not apply to the resolution applicant in respect of corporate insolvency resolution process [or prepackaged insolvency resolution process] of any micro, small and medium enterp The Act was enacted on 28 May 2016.
1[240A. Application of this Code to micro, small and medium enterprises.--(1) Notwithstanding anything to the contrary contained in this Code, the provisions of clauses (c) and (h) of section 29A shall not apply to the resolution applicant in respect of corporate insolvency resolution process 2 [or prepackaged insolvency resolution process] of any micro, small and medium enterprises.
(2) Subject to sub-section (1), the Central Government may, in the public interest, by notification, direct that any of the provisions of this Code shall--
(a) not apply to micro, small and medium enterprises; or
(b) apply to micro, small and medium enterprises, with such modifications as may be specified in the notification.
(3) A draft of every notification proposed to be issued under sub-section (2), shall be laid before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions.
(4) If both Houses agree in disapproving the issue of notification or both Houses agree in making any modification in the notification, the notification shall not be issued or shall be issued only in such modified form as may be agreed upon by both the Houses, as the case may be.
(5) The period of thirty days referred to in sub-section (3) shall not include any period during which the House referred to in sub-section (4) is prorogued or adjourned for more than four consecutive days.
(6) Every notification issued under this section shall be laid, as soon as may be after it is issued, before each House of Parliament.
Explanation.--For the purposes of this section, the expression micro, small and medium enterprises means any class or classes of enterprises classified as such under sub-section (1) of section 7 of the Micro, Small and Medium Enterprises Development Act, 2006.]
Section 240A, The Insolvency and Bankruptcy Code, 2016 (Act 31 of 2016).
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Questions about Section 240A
What does Section 240A of the Insolvency and Bankruptcy Code deal with?
Section 240A of the Insolvency and Bankruptcy Code is headed "Application of this Code to micro, small and medium enterprises". [240A. Application of this Code to micro, small and medium enterprises.--(1) Notwithstanding anything to the contrary contained in this Code, the provisions of clauses (c) and (h) of section 29A shall not apply to the resolution applicant in respect of corporate insolvency resolution process [or pre
How do I find court cases under Section 240A 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 240A, section 240A Insolvency and Bankruptcy Code, section 240A 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.
What should I read with Section 240A of the Insolvency and Bankruptcy Code, and has it changed?
Its own text turns on section 29A (Person not eligible to be resolution applicant), so none of them can safely be read on its own.
When was Section 240A of the Insolvency and Bankruptcy Code enacted?
Section 240A of the Insolvency and Bankruptcy Code, cited as Insolvency and Bankruptcy Code 240A, 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 15 Oct 2026. This page is not a substitute for legal advice.