30 March 2024 21:40

Introduction
• The Insolvency and Bankruptcy Code, 2016 was enacted by the Indian Parliament to
consolidate and amend the existing laws relating to insolvency and bankruptcy in the
country.

• It established the Insolvency and Bankruptcy Board of India (IBBI) on 1st October 2016.

• IBBI is responsible for implementing the IBC and amending legislation for insolvency
resolution of corporate people, partnership companies, and individuals in a timely way,
in order to maximize the worth of such a person’s assets.

• Its main functions include registering insolvency professionals and insolvency

professional agencies, regulating the insolvency process, and promoting the development
of an efficient insolvency system in India.

• The main agenda of the Insolvency and Bankruptcy Board of India (IBBI) was to improve
the bankruptcy regime of the country. The IBBI is the main pillar in the implementation
of the IBC.

Powers Given To IBBI:

SECTION 196 of IBC grants the powers to make regulations consistent with the provisions
of the code.

• IBBI has the power to regulate IPs, IUs, and IPAs. The registration of all these service
providers occurs under IBBI. It ensures that qualified and ethical professionals handle
insolvency cases.

• IBBI also sets procedures for the adjudicating authorities to handle insolvency matters
effectively.

• SECTION 196(3) of IBC gives the power of a civil court to the IBBI while trying a suit.
Powers and Functions of IBBI Page 1
• SECTION 196(3) of IBC gives the power of a civil court to the IBBI while trying a suit.

• It can levy fees and charges payable to the IBBI for various services, registrations, and
processes.

• It can watch over and ensure that all service providers are working correctly.

• Under SECTION 230, IBBI has the power to delegate any power or function to any of its
members if necessary. But powers under SECTION 240 can't be delegated.

Functions Of IBBI:
The main functions of IBBI are INSPECTION and INVESTIGATION.

• Under SECTION 217 complaint can be filed against IPs, IUs and IPAs if anyone's
fundamental right is getting hurt or if anything wrong in their functions.

• If the IBBI finds IP, IU, or IPA have committed any breach then it may appoint any
person to work as an investigating authority to conduct an investigation under SECTION
218.

• After investigation, IBBI can issue a show cause notice to the service providers under
SECTION 219.

• SECTION 220 deals with the appointment of the disciplinary committee.

• If IPs, IUs, or IPAs are found or proven guilty, they may also receive punishment from
the insolvency and bankruptcy board of India:
○ It can set a penalty of up to three times the loss caused or three times the unlawful
gain.
○ They can also suspend or cancel the registration of the IP, IU, or IPA.

Powers and Functions of IBBI Page 2