Section 222: Board's Fund under the Insolvency and Bankruptcy Code, 2016
Section 222 establishes the Fund of the Insolvency and Bankruptcy Board and identifies the receipts that may be credited to it and the purposes for which it may be spent. It provides the statutory basis for funding the Insolvency and Bankruptcy Board of India (IBBI).
Section 222: Statutory provision
222. (1) There shall be constituted a Fund to be called the Fund of the Insolvency and Bankruptcy Board and there shall be credited thereto—
(a) all grants, fees and charges received by the Board under this Code;
(b) all sums received by the Board from such other sources as may be decided upon by the Central Government;
(c) such other funds as may be specified by the Board or prescribed by the Central Government.
(2) The Fund shall be applied for meeting—
(a) the salaries, allowances and other remuneration of the members, officers and other employees of the Board;
(b) the expenses of the Board in the discharge of its functions under section 196;
(c) the expenses on objects and for purposes authorised by this Code;
(d) such other purposes as may be prescribed.
The statutory wording above follows the supplied Section 222 text. For authoritative amendments and subordinate legislation, consult the official sources linked below.
Section 222(1): What money is credited to the Board's Fund?
Clause (a): Grants, fees and charges
Money received by the Board under the Code, including government grants and regulatory fees or charges, is credited to the Fund. Section 221 separately authorises the Central Government, after parliamentary appropriation, to provide grants to the Board.
Clause (b): Other sources decided by the Central Government
The Central Government may decide that sums received from other sources are to be credited to the Fund. This clause does not by itself authorise an unrestricted collection from any source; the applicable legal decision and requirements must be followed.
Clause (c): Other specified or prescribed funds
Additional funds may be included when specified by the Board or prescribed by the Central Government within their respective statutory powers. The distinction between a Board specification and Central Government prescription matters when identifying the applicable legal instrument.
Section 222(2): How may the Fund be used?
Clause (a): Staff and member remuneration
The Fund can meet salaries, allowances and other remuneration payable to the Board's members, officers and employees.
Clause (b): Performance of regulatory functions
It can meet the Board's expenses in discharging its functions under Section 196, including the regulatory and supervisory functions assigned by that provision.
Clause (c): Other Code-authorised purposes
Expenditure may be incurred for objects and purposes authorised elsewhere in the IBC, subject to applicable financial and administrative requirements.
Clause (d): Prescribed purposes
The Fund may also be used for additional purposes prescribed under the relevant rule-making power. A proposed use should be checked against the current rules rather than assumed to be permitted.
Meaning of important legal terms
Board: The Insolvency and Bankruptcy Board of India established under Section 188 of the IBC.
Grant: Financial assistance provided to the Board, including sums the Central Government may provide under Section 221 after due parliamentary appropriation.
Prescribed: Prescribed by rules made under the Code; this differs from matters specified by regulations or other instruments, where the Code makes that distinction.
Fund: The statutory Fund of the Insolvency and Bankruptcy Board constituted by Section 222, to which specified receipts are credited and from which permitted expenses are met.
Related provisions and financial accountability
- Section 196: Powers and functions of the Board, relevant to expenses under Section 222(2)(b).
- Section 188: Establishment and incorporation of the Insolvency and Bankruptcy Board of India.
- Section 221: Grants by the Central Government following due appropriation by Parliament.
- Section 223: Accounts and audit, providing the connected framework for financial reporting and scrutiny.
Read the broader Insolvency and Bankruptcy Code, 2016 guide or consult the India Code statutory database and IBBI legal framework for official legislation, rules, regulations and updates.
Frequently asked questions
What is the Board's Fund under Section 222?
It is the statutory fund constituted for the IBBI, receiving the categories of money described in subsection (1) and meeting the expenditure authorised by subsection (2).
Can the Central Government give grants to the IBBI?
Yes. Section 221 allows grants after due appropriation by Parliament, and Section 222(1)(a) provides for such grants to be credited to the Fund.
Can the Fund be used to pay creditors in an insolvency case?
Section 222 does not establish a creditor distribution fund. Payments to creditors in insolvency proceedings are governed by other applicable provisions of the IBC.
Which provision addresses the Board's accounts and audit?
Section 223 of the IBC addresses accounts and audit. It should be read with Section 222 when considering financial accountability.
Updated: 23 October 2026. This article is general legal information; the current official legislation and applicable rules govern in the event of any difference.