Section 230: Delegation of Powers and Functions by the Insolvency and Bankruptcy Board of India
Section 230 of the Insolvency and Bankruptcy Code, 2016 (IBC) allows the Insolvency and Bankruptcy Board of India (IBBI) to delegate specified powers and functions to its members or officers through a general or special written order. The Board cannot delegate its power to make regulations under Section 240.
Section 230: Statutory provision
230. Delegation. The Board may, by general or special order in writing, delegate to any member or officer of the Board, subject to such conditions, if any, as may be specified in the order, such of its powers and functions under this Code (except the powers under section 240) as it may deem necessary.
The supplied page contained an incomplete closing parenthesis after the reference to Section 240. The text above restores that punctuation for readability. For the authoritative current wording, check the official legislation linked below.
Meaning of Section 230 and requirements for a valid delegation
1. The Board must issue a written order
Delegation under Section 230 is made through a general or special order in writing. A general order may cover a class of matters or functions, whereas a special order may address a particular assignment. The precise authority of the delegate must be determined from the relevant order.
2. Only a member or officer of the Board may receive the delegation
The provision identifies members or officers of the IBBI as eligible delegates. It does not, by itself, authorise the Board to transfer its statutory powers to an unrelated private person, an insolvency professional or an external organisation.
3. The Board chooses the powers and functions to delegate
The Board may select those powers and functions under the IBC that it considers necessary to delegate, except the expressly excluded regulation-making power. Delegation does not automatically cover every function of the Board: the order must be read to identify the delegated authority.
4. The order may impose conditions
Any conditions stated in the order govern the exercise of delegated powers. Such conditions may address the scope of work or internal approval requirements, depending on the terms of the actual order. An officer acting beyond those terms cannot rely on Section 230 alone to justify the action.
What cannot be delegated under Section 230?
Other statutory safeguards remain applicable even when a power has been validly delegated. The delegate must act within the Code, applicable rules and regulations, the written delegation order and any legally required procedure. A delegation cannot enlarge the Board's underlying statutory powers.
General order and special order: practical distinction
A general order is commonly used to allocate recurring responsibilities to designated Board members or officers. A special order may assign authority for a specific matter or defined task. These are explanatory descriptions; the legal effect in each case depends on the wording of the actual written order.
Illustrative example
Suppose the Board issues a written order authorising a designated officer to perform a particular administrative function under the IBC, subject to specified conditions. The officer may act within the scope of that order. The same officer could not rely on the order to make IBBI regulations under Section 240, because that power is expressly excluded by Section 230.
Related provisions of the Insolvency and Bankruptcy Code
- Section 188: Establishment and incorporation of the Insolvency and Bankruptcy Board of India.
- Section 196: Powers and functions of the Board, which provide context for the functions that may be delegated.
- Section 225: Power of the Central Government to issue policy directions to the Board.
- Section 240: Power of the Board to make regulations; this is the express exception to delegation under Section 230.
- Section 241: Rules and regulations to be laid before Parliament.
For the complete statute, visit the Insolvency and Bankruptcy Code, 2016 overview. Check the India Code database for the official Act and the IBBI legal framework for applicable regulations, circulars and other regulatory instruments. The IBBI website is the primary regulator website.
Frequently asked questions
Can the IBBI delegate powers to an officer?
Yes. Section 230 permits delegation to a Board member or officer by a general or special written order, subject to any conditions specified in that order.
Can the Board delegate its regulation-making power?
No. Section 230 expressly excludes powers under Section 240, the provision dealing with the Board's power to make regulations.
Does a delegation need to be in writing?
Yes. The statutory language expressly requires a general or special order in writing.
Does delegation transfer all powers automatically?
No. Only the powers and functions covered by the written order are delegated, subject to the order's conditions and statutory limits.
Is delegation under Section 230 the same as government directions under Section 225?
No. Section 230 concerns the Board's internal delegation to members or officers. Section 225 concerns written policy directions issued by the Central Government to the Board.
Updated: 23 October 2026. This is general legal information; consult the current official Code and relevant orders for a specific question.