Scheme of the IBC: Parts, Chapters and Key Processes

The Insolvency and Bankruptcy Code is arranged in five Parts. Part II deals with companies and other corporate persons, Part III with individuals and partnership firms, Part IV with the institutions that run the system, and Parts I and V with preliminary and general matters. Much of the operating detail lies in rules and regulations rather than in the Code itself. This note maps the Code Part by Part, explains how its processes connect, and identifies the subordinate legislation that a reader must use alongside it.

1. Extent and Application

• Section 1. The Code extends to the whole of India, and different provisions may be brought into force on different dates, which is why the Code commenced in phases from 2016 (Topic 1)
• Section 2. The Code applies to (a) companies incorporated under the Companies Act, 2013 or any previous company law; (b) companies governed by a special Act, except where inconsistent with that Act; (c) limited liability partnerships; (d) other bodies incorporated under any law that the Central Government notifies; (e) personal guarantors to corporate debtors; (f) partnership firms and proprietorship firms; and (g) other individuals, in relation to their insolvency, liquidation, voluntary liquidation or bankruptcy.
• Phased application. Clauses (a) to (e) are in force; Part III has not been brought into force for partnership firms, proprietorship firms and other individuals.

2. The Five Parts

Figure 1: The five Parts of the Code

• Definitions. Section 3 contains definitions that apply throughout the Code, such as claim, debt, default, creditor, corporate person and security interest; section 5 adds definitions for Part II, such as financial and operational creditor; section 79 adds definitions for Part III.
• Two adjudicating authorities. The NCLT is the adjudicating authority for corporate persons and for personal guarantors to corporate debtors (sections 5(1) and 60); the Debt Recovery Tribunal is the adjudicating authority for other individuals and partnership firms (section 79(1) and section 179)

3. Part II: Corporate Persons

Figure 2: Chapters of Part II

• Chapter I. Section 4 sets the minimum amount of default for Part II, now one crore rupees; section 5 defines the terms used in Part II, and the 2026 Amendment added definitions of avoidance transaction and fraudulent or wrongful trading.
• Chapter II, CIRP. The heart of the Code: initiation (sections 6 to 11), timelines and withdrawal (sections 12 and 12A), admission, moratorium and public announcement (sections 13 to 15), the interim resolution professional and the committee of creditors (sections 16 to 24), the resolution professional (sections 25 to 28), the resolution plan (sections 29 to 31), appeals (section 32) and immunity (section 32A)
• Chapter III, liquidation. Initiation of liquidation (section 33), the liquidator, liquidation estate and access to information (sections 34 to 37), claims (sections 38 to 42), avoidance transactions (sections 43 to 51), secured creditors (section 52), distribution (section 53) and dissolution (section 54)
• Chapter III-A, pre-pack. Added in 2021 for MSMEs, allowing a debtor-led process with an approved base plan (Topic 21)
• Chapter IV-A, creditor-initiated process. The 2026 Amendment omits the fast track process of sections 55 to 58 and inserts a creditor-initiated insolvency resolution process, which is yet to be notified (Topic 62)
• Chapters V and V-A. Voluntary liquidation of solvent corporate persons (section 59) and, from 2026, group insolvency (section 59A), also awaiting notification.
• Chapters VI and VII. The adjudicating authority and appeals (sections 60 to 67A), including avoidance and fraudulent trading proceedings (sections 60(5), 65 and 66), and offences and penalties (sections 68 to 77A), which the 2026 Amendment partly converted into civil penalties (Topic 76)

Figure 3: The corporate process from default to resolution or liquidation

4. Part III: Individuals and Partnership Firms

• Chapter I (sections 78, 79). Application and definitions, including the minimum default of one thousand rupees, which the Central Government may raise to one lakh rupees (section 78)
• Chapter II (sections 80 to 93). Fresh start process for debtors with low income and assets, leading to a discharge of qualifying debts (Topic 67)
• Chapter III (sections 94 to 120). Insolvency resolution process, with an interim moratorium on filing, a resolution professional's report, and a repayment plan approved by creditors (Topics 68 and 69)
• Chapters IV and V (sections 121 to 178). Bankruptcy order, vesting of the estate in a bankruptcy trustee, administration, distribution and discharge (Topics 70 and 71)
• Chapters VI and VII (sections 179 to 187). The Debt Recovery Tribunal as adjudicating authority, appeals to the Debt Recovery Appellate Tribunal, and offences.

5. Part IV: Regulation

• Chapters I and II (sections 188 to 198). Establishment, composition, powers and functions of the Insolvency and Bankruptcy Board of India (Topic 74)
• Chapters III and IV (sections 199 to 208). Registration and governance of insolvency professional agencies, and the enrolment and functions of insolvency professionals.
• Chapter V (sections 209 to 216). Information utilities, which store financial information and authenticate records of debt and default (Topic 75)
• Chapters VI and VII (sections 217 to 223). Inspection, investigation and disciplinary proceedings, revised by the 2026 Amendment, and the Board's finances.

6. Part V: Miscellaneous

• Key sections. Section 224, Insolvency and Bankruptcy Fund; section 227, power to notify financial service providers (Topic 37); section 231, bar on civil courts; sections 234 and 235, cross-border agreements and letters of request, with section 240C added in 2026 (Topic 64); section 236, trial of offences by Special Courts; section 238, overriding effect (Topic 77); section 238A, limitation (Topic 18); sections 239 and 240, power to make rules and regulations; section 240A, relaxation of section 29A for MSMEs.
• Repeal and amendments. Section 243 repeals the 1909 and 1920 insolvency Acts but is not yet in force; sections 245 to 255 amend other laws (Topic 2)

7. Rules, Regulations and Forms

• Central Government rules. The Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, which prescribe the forms for applications, such as Form 1 for a financial creditor, Forms 3 and 4 for the operational creditor's demand notice, Form 5 for an operational creditor and Form 6 for the corporate debtor; and rules for financial service providers (2019) and personal guarantors (2019)
• IBBI regulations. The Insolvency Resolution Process for Corporate Persons Regulations, 2016 (CIRP Regulations), the Liquidation Process Regulations, 2016, the Voluntary Liquidation Process Regulations, 2017, the Insolvency Professionals Regulations, 2016, the Information Utilities Regulations, 2017 and the Pre-packaged Insolvency Resolution Process Regulations, 2021.
• NCLT procedure. The NCLT Rules, 2016 govern procedure before the tribunal, including Rule 11 on its inherent powers.

8. Frequently Asked Questions

Which tribunal decides a personal guarantor's insolvency?

The NCLT, under section 60(1), because the personal guarantor is linked to a corporate debtor. The Debt Recovery Tribunal decides the insolvency of other individuals and partnership firms under Part III once those provisions are notified.

Where are the forms for filing an insolvency application found?

In the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. A financial creditor files Form 1, an operational creditor first serves a demand notice in Form 3 or 4 and then files Form 5, and a corporate debtor files Form 6.

Is the fast track process still available?

The 2026 Amendment omits the fast track insolvency resolution process and replaces it with a creditor-initiated process. Since the new chapter is yet to be notified, the exact transition should be confirmed from the commencement notification before relying on either.

9. Related Topics

• Topic 5: Corporate Person and Corporate Debtor. Who falls under Part II.
• Topic 6: Claim, Debt and Default. The core definitions.
• Topic 65: Part III. Scope and phased application.