Section 236 of the IBC: Trial of Offences by Special Court
Section 236 of the Insolvency and Bankruptcy Code, 2016 (IBC) establishes how criminal offences under the Code are tried. It directs such offences to a Special Court under the Companies Act, 2013, restricts who may initiate a prosecution by complaint, and addresses the procedure and attendance of authorised complainants.
Section 236: Statutory text
236. (1) Notwithstanding anything in the Code of Criminal Procedure, 1973, offences under this Code shall be tried by the Special Court established under Chapter XXVIII of the Companies Act, 2013.
(2) No Court shall take cognizance of any offence punishable under this Act, save on a complaint made by the Board or the Central Government or any person authorised by the Central Government in this behalf.
(3) The provisions of the Code of Criminal Procedure, 1973 shall apply to the proceedings before a Special Court and for the purposes of the said provisions, the Special Court shall be deemed to be a Court of Session and the person conducting a prosecution before a Special Court shall be deemed to be a Public Prosecutor.
(4) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, in case of a complaint under sub-section (2), the presence of the person authorised by the Central Government or the Board before the Court trying the offences shall not be necessary unless the Court requires his personal attendance at the trial.
The text above follows the uploaded page. For the legally operative wording, read the current consolidated IBC and amendments on official government sources. References in the text to the Code of Criminal Procedure, 1973 should also be considered in light of the Bharatiya Nagarik Suraksha Sanhita, 2023 and its repeal, savings and corresponding-provision rules.
Explanation of Section 236
Subsection (1): Special Court has jurisdiction to try IBC offences
Criminal offences created by the IBC are assigned to a Special Court established under Chapter XXVIII of the Companies Act, 2013. The opening words “notwithstanding anything” give this trial forum priority over inconsistent provisions of the general criminal procedure legislation, to the extent contemplated by the section. The provision concerns criminal trials; it does not convert ordinary insolvency admission, resolution or liquidation applications into criminal cases.
Subsection (2): Who can initiate a complaint?
A court may take cognizance of an offence punishable under the IBC only upon a complaint made by the Insolvency and Bankruptcy Board of India (IBBI), the Central Government, or a person authorised by the Central Government for this purpose. A creditor, debtor, shareholder or other private person cannot independently bypass this statutory complaint requirement to obtain cognizance under Section 236(2). They may, where appropriate, provide information to competent authorities for consideration under applicable law.
Subsection (3): Criminal procedure and prosecution
The subsection applies general criminal procedure to proceedings before the Special Court, treats the Special Court as a Court of Session for that procedural purpose, and treats the person conducting the prosecution as a Public Prosecutor. Because India's principal criminal procedure legislation changed with effect from 1 July 2024, the application of this reference should be assessed with the current statutory text, the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS), and applicable savings provisions. It is not correct to assume that every pending and newly instituted case follows the same transitional rule.
Subsection (4): Attendance of the authorised complainant
The authorised representative referred to in this subsection need not attend each hearing in person merely because the complaint was filed. However, the Special Court may require personal attendance when necessary. This provision does not dispense with evidence, due process or compliance with a lawful court direction.
Definitions and important legal expressions
Special Court: A court established or designated under Chapter XXVIII of the Companies Act, 2013 for the trial of specified offences. Its constitution and jurisdiction must be assessed under the applicable Companies Act provisions and notifications.
Board: The Insolvency and Bankruptcy Board of India, constituted under Section 188 of the IBC.
Cognizance: The judicial act of taking notice of an alleged offence for the purpose of proceeding according to criminal law; it is not a finding of guilt.
Complaint: A formal allegation made to a competent court seeking action in relation to an offence, subject to the statutory authorisation requirement in Section 236(2).
Public Prosecutor: The person conducting the prosecution before the Special Court, treated as such for the purposes stated in Section 236(3).
Non-obstante clause: The phrase “notwithstanding anything” indicates that the provision is intended to operate despite inconsistent provisions in the law identified by the clause.
How prosecution of an IBC offence generally proceeds
- Identify the alleged offence: Determine the specific penal provision of the IBC and the relevant facts, evidence and statutory requirements.
- Approach the competent authority: The IBBI, Central Government or duly authorised person assesses whether a complaint should be filed.
- File the statutory complaint: A complaint complying with Section 236(2) is presented before the competent court.
- Court considers cognizance: The court examines whether the legal requirements for taking cognizance are met.
- Special Court trial: The matter proceeds under applicable criminal procedure, including rights of the accused and evidentiary requirements.
- Attendance as directed: The authorised complainant attends personally if the court so requires under subsection (4).
These are general explanatory steps, not a substitute for the procedural rules applicable to a particular charge, notification, or court.
Related IBC provisions and official sources
- Section 188: Establishment and incorporation of the IBBI.
- Sections 68 to 77: Offences and penalties connected with corporate insolvency, including concealment, transactions and information obligations.
- Sections 196 and 220: Functions of the Board and disciplinary proceedings; regulatory action is distinct from criminal prosecution.
- Section 237: Appeal and revision against orders of the Special Court.
- Companies Act, 2013, Chapter XXVIII: Statutory framework for Special Courts.
- Bharatiya Nagarik Suraksha Sanhita, 2023: Current principal criminal procedure legislation, subject to applicable transition and savings rules.
Read the Insolvency and Bankruptcy Code, 2016 overview, the India Code official legislation portal, the IBBI legal framework, and the Ministry of Corporate Affairs for legislation, rules, notifications and authoritative updates.
Frequently asked questions
Which court tries criminal offences under the IBC?
Section 236(1) assigns trials to a Special Court established under Chapter XXVIII of the Companies Act, 2013, subject to the applicable legal framework.
Can a creditor directly file a criminal complaint under Section 236?
Section 236(2) restricts cognizance to complaints by the IBBI, Central Government or a person authorised by the Central Government. A creditor may supply information to the relevant authority but does not thereby acquire independent authority under this subsection.
Does an IBC offence automatically mean a person is guilty?
No. A complaint and cognizance are procedural steps. Criminal liability must be established under the applicable offence provision and criminal law.
Does the complainant have to attend every hearing?
Not necessarily. Under subsection (4), personal attendance of the authorised complainant is not required unless the Special Court directs otherwise.
Does the CrPC reference mean the 1973 Code governs all new cases?
No. The BNSS, 2023 came into force on 1 July 2024. The correct procedural regime depends on the governing legislation, relevant amendments, savings provisions and the stage of the particular proceedings.
Updated: 23 October 2026. This article provides general legal information, not case-specific advice. Verify statutory amendments and notifications from official sources before relying on any procedural rule.