Section 239 IBC: Power of the Central Government to Make Rules

Section 239 of the Insolvency and Bankruptcy Code, 2016 (IBC) empowers the Central Government to make rules by notification for carrying out the Code. Sub-section (2) identifies particular matters that may be regulated, including insolvency applications, bankruptcy procedures, the IBBI and financial-sector processes.

Section 239 - Complete statutory provision

1. Clause (a): any other instrument which shall be a financial product under clause (15) of section 3;
2. Clause (b): other accounting standards which shall be a financial debt under clause (d) of sub-section (8) of section 5;
3. Clause (c): the form, the manner and the fee for making application before the Adjudicating Authority for initiating corporate insolvency resolution process by financial creditor under sub-section (2) of section 7;
4. Clause (d): of sub-section (8) of section 5; (c) the form, the manner and the fee for making application before the Adjudicating Authority for initiating corporate insolvency resolution process by financial creditor under sub-section (2) of section 7; (d) the form and manner in which demand notice may be made and the manner of delivery thereof to the corporate debtor under sub-section (1) of section 8;
5. Clause (e): the form, the manner and the fee for making application before the Adjudicating Authority for initiating corporate insolvency resolution process by operational creditor under sub-section (2) of section 9;
6. Clause (f): the form, the manner and the fee for making application before the Adjudicating Authority for initiating corporate insolvency resolution process by corporate applicant under sub-section (2) of section 10;
7. Clause (g): the persons who shall be relative under clause (ii) of the Explanation to sub-section (1) of section 79;
8. Clause (h): the value of unencumbered single dwelling unit owned by the debtor under clause (e) of sub-section (13) of section 79;
9. Clause (i): the value under clause (c), and any other debt under clause (f), of sub-section (14) of section 79;
10. Clause (j): the form, the manner and the fee for making application for fresh start order under sub-section (3) of section 81;
11. Clause (k): the particulars of the debtor's personal details under clause (e) of sub-section (3) of section 81;
12. Clause (l): the information and documents to support application under sub-section (3) of section 86;
13. Clause (m): the form, the manner and the fee for making application for initiating the insolvency resolution process by the debtor under sub-section (6) of section 94;
14. Clause (n): the form, the manner and the fee for making application for initiating the insolvency resolution process by the creditor under sub-section (6) of section 95;
15. Clause (o): the particulars to be provided by the creditor to the resolution professional under sub-section (2) of section 103;
16. Clause (p): the form and the manner for making application for bankruptcy by the debtor under clause (b) of sub-section (1) of section 122;
17. Clause (q): the form and the manner of the statement of affairs of the debtor under sub-section (3) of section 122;
18. Clause (r): the other information under clause (d) of sub-section (1) of section 123;
19. Clause (s): the form, the manner and the fee for making application for bankruptcy under sub-section (6) of section 123;
20. Clause (t): the form and the manner in which statement of financial position shall be submitted under sub-section (2) of section 129;
21. Clause (u): the matters and the details which shall be included in the public notice under sub-section (2) of section 130;
22. Clause (v): the matters and the details which shall be included in the notice to the creditors under sub-section (3) of section 130;
23. Clause (w): the manner of sending details of the claims to the bankruptcy trustee and other information under sub-sections (1) and (2) of section 131;
24. Clause (x): the value of financial or commercial transaction under clause (d) of sub-section (1) of section 141;
25. Clause (y): the other things to be done by a bankrupt to assist bankruptcy trustee in carrying out his functions under clause (d) of sub-section (1) of section 150;
26. Clause (z): the manner of dealing with the surplus under sub-section (4) of section 170;
27. Clause (za): the form and the manner of proof of debt under clause (c) of sub-section (2) of section 171;
28. Clause (zb): the manner of receiving dividends under sub-section (7) of section 171;
29. Clause (zc): the particulars which the notice shall contain under sub-section (2) of section 176;
30. Clause (zd): the salaries and allowances payable to, and other terms and conditions of service of, the Chairperson and members of the Board under sub-section (5) of section 189;
31. Clause (ze): the other functions of the Board under clause (u) of sub-section (1) of section 196;
32. Clause (zf): the other funds under clause (c) of sub-section (1) of section 222;
33. Clause (zg): the other purposes for which the fund shall be applied under clause (d) of sub-section (2) of section 222;
34. Clause (zh): the form in which annual statement of accounts shall be prepared under sub-section (1) of section 223;
35. Clause (zi): the purpose for which application for withdrawal of funds may be made under sub-section (3) of section 224;
36. Clause (zj): the manner of administering the fund under sub-section (4) of section 224;
37. Clause (zk): the manner of conducting insolvency and liquidation proceedings under section 227;
38. Clause (zl): the form and the time for preparing budget by the Board under section 228;
39. Clause (zm): the form and the time for preparing annual report under sub-section (1) of section 229;
40. Clause (zn): the time up to which a person appointed to any office shall continue to hold such office under clause (vi) of sub-section (2) of section 243. The Insolvency and Bankruptcy Code 2016

The text above preserves the clauses appearing in the supplied webpage. Verify the operative wording and any later amendments against the official consolidated legislation before relying on a particular clause.

What does Section 239 mean?

Rule-making power is authority delegated by Parliament through a statute to frame detailed subordinate legislation. Under Section 239(1), the Central Government may make rules by notification to implement the IBC. The phrase "without prejudice to the generality" in sub-section (2) means that the listed subjects illustrate and specify the power; they do not, by themselves, exhaust the general authority in sub-section (1).

A notification is the prescribed formal publication of a government decision under the Code. The rule-making power must remain within the scope of the parent legislation and is subject to applicable statutory and constitutional requirements.

Major areas covered by the rule-making clauses

Central Government rules and IBBI regulations: the distinction

Section 239 authorises the Central Government to make rules. Section 240 separately empowers the Insolvency and Bankruptcy Board of India (IBBI) to make regulations consistent with the Code and rules, subject to its statutory requirements. The two powers are distinct and must not be treated as interchangeable.

Section 241 provides for laying rules and regulations before Parliament. When identifying the law applicable to a case, check the particular rule or regulation, its commencement date, subsequent amendments and any relevant judicial decisions.

Practical application of Section 239

Corporate insolvency applications

Clauses (c), (e) and (f) address application forms, manner and fees for initiating the corporate insolvency resolution process by financial creditors, operational creditors and corporate applicants. Clause (d) concerns operational-creditor demand notices. Relevant implementing instruments include the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, as amended.

Personal guarantors and individual proceedings

Clauses (m) and (n) relate to debtor- and creditor-initiated insolvency applications under Sections 94 and 95. The relevant rules for personal guarantors to corporate debtors should be examined alongside the provisions brought into force for that category and the applicable IBBI regulations.

Board administration and reporting

Clauses (zd) and (ze), together with clauses (zh) to (zm), address institutional service conditions, functions, funds, accounting, budgets and reporting. The relevant notification and current rules determine the operational details.

Important legal definitions

• Central Government: the Union Government acting within the powers assigned by the IBC.
• Adjudicating Authority: the authority designated by the Code for the relevant proceedings; for corporate persons, this is generally the National Company Law Tribunal under Section 60.
• Financial creditor: a person to whom a financial debt is owed, as defined by Section 5(7).
• Operational creditor: a person to whom an operational debt is owed, as defined by Section 5(20).
• Board: the Insolvency and Bankruptcy Board of India established under Section 188.
• Delegated legislation: rules or regulations made under powers conferred by the parent statute.

Frequently asked questions

Who can make rules under Section 239 of the IBC?

The Central Government may make rules by notification for carrying out the provisions of the IBC.

Does Section 239 itself prescribe application fees?

No. It authorises the Government to prescribe forms, manner and fees for specified applications. The applicable rules establish the actual requirements.

Is the list in Section 239(2) exhaustive?

It is introduced as being without prejudice to the general power in Section 239(1). Any rule must nonetheless remain within the authority delegated by the IBC.

What is the difference between Sections 239 and 240?

Section 239 concerns Central Government rules; Section 240 concerns IBBI regulations.

Where can the current IBC rules be checked?

Consult the official India Code repository and the IBBI legal framework for legislation, rules, regulations and amendments.

Official sources and further reading

• India Code - Insolvency and Bankruptcy Code, 2016
• IBBI - Acts, rules, regulations and amendments
• Ministry of Corporate Affairs - Notifications and rules
• Insolvency and Bankruptcy Code, 2016 - Section index

Last reviewed: 23 October 2026. General legal information; the applicable consolidated law, commencement notifications and subsequent amendments govern.