Section 243 IBC: Repeal of Certain Enactments and Savings
Section 243 of the Insolvency and Bankruptcy Code, 2016 (IBC) deals with the repeal of two earlier personal insolvency statutes and protects specified pending proceedings, legal acts, rights and liabilities through savings provisions. Its operation must be read alongside the commencement notifications and the General Clauses Act, 1897.
Section 243: Statutory text
243. (1) The Presidency Towns Insolvency Act, 1909 and the Provincial Insolvency Act, 1920 are hereby repealed.
(2) Notwithstanding the repeal under sub-sections (1),-
(i) all proceedings pending under and relating to the Presidency Towns Insolvency Act 1909, and the Provincial Insolvency Act 1920 immediately before the commencement of this Code shall continue to be governed under the aforementioned Acts and be heard and disposed of by the concerned courts or tribunals, as if the aforementioned
Acts have not been repealed;
(ii) any order, rule, notification, regulation, appointment, conveyance, mortgage, deed, document or agreement made, fee directed, resolution passed, direction given, proceeding taken, instrument executed or issued, or thing done under or in pursuance of any repealed enactment shall, if in force at the commencement of this Code, continue to be in force, and shall have effect as if the aforementioned Acts have not been repealed;
(iii) anything done or any action taken or purported to have been done or taken, including any rule, notification, inspection, order or notice made or issued or any appointment or declaration made or any operation undertaken or any direction given or any proceeding taken or any penalty, punishment, forfeiture or fine imposed under the repealed enactments shall be deemed valid;
(iv) any principle or rule of law, or established jurisdiction, form or course of pleading, practice or procedure or existing usage, custom, privilege, restriction or exemption shall not be affected, notwithstanding that the same respectively may have been in any manner affirmed or recognised or derived by, in, or from, the repealed enactments;
(v) any prosecution instituted under the repealed enactments and pending immediately before the commencement of this Code before any court or tribunal shall, subject to the provisions of this Code, continue to be heard and disposed of by the concerned court or tribunal;
(vi) any person appointed to any office under or by virtue of any repealed enactment shall continue to hold such office until such time as may be prescribed; and
(vii) any jurisdiction, custom, liability, right, title, privilege, restriction, exemption, usage, practice, procedure or other matter or thing not in existence or in force shall not be revised or restored.
(3) The mention of particular matters in sub-section (2) shall not be held to prejudice the general application of section 6 of the General Clauses Act, 1897 with regard to the effect of repeal of the repealed enactments or provisions of the enactments mentioned in the Schedule.
The statutory wording above is retained from the supplied webpage. Section 243 must be read with the relevant commencement notifications: enactment of a provision and its legal commencement are not necessarily the same event. Verify the latest operative text and notifications on India Code and IBBI before relying on the repeal in an individual matter.
Explanation of Section 243
Subsection (1): Repeal of two earlier insolvency laws
Subsection (1) provides for the repeal of the Presidency Towns Insolvency Act, 1909 and the Provincial Insolvency Act, 1920. These were older statutory frameworks concerning individual insolvency. The practical effect of this repeal depends on whether and when the relevant provision has been brought into force by a commencement notification. It should not be assumed that an uncommenced repeal has already extinguished either enactment.
Subsection (2): Protection of existing matters
Subsection (2) contains seven specific savings. They are designed to avoid disrupting proceedings, acts and legal positions merely because the earlier legislation is repealed. A saving is not a general permission to start a fresh case under a repealed enactment; its precise reach depends on the wording and the operative commencement date.
Subsection (3): General Clauses Act protection
Subsection (3) preserves the general application of Section 6 of the General Clauses Act, 1897 in addition to the particular savings in subsection (2). Section 6 addresses the effects of repeal, including accrued rights, liabilities, penalties, investigations and legal proceedings, subject to a different legislative intention.
What is saved under clauses (i) to (vii)?
- Clause (i) - Pending insolvency proceedings: Proceedings pending immediately before the relevant commencement are to continue under the earlier Acts and before the concerned courts or tribunals, as specified.
- Clause (ii) - Existing instruments and legal acts: Orders, rules, notifications, appointments, documents, agreements and other specified matters in force at commencement may continue to have effect.
- Clause (iii) - Validity of prior actions: Actions taken or purportedly taken under the repealed legislation, including penalties and proceedings, are protected as stated in the clause.
- Clause (iv) - Existing legal principles and practices: Recognised legal principles, jurisdictions, procedural practices, customs, privileges and restrictions are not displaced solely by the repeal in the manner described.
- Clause (v) - Pending prosecutions: Prosecutions instituted under the earlier Acts and pending immediately before commencement continue before the competent forum, subject to the IBC.
- Clause (vi) - Continuation in office: Persons appointed under the earlier enactments may continue in office until the time prescribed by the applicable rules.
- Clause (vii) - No revival of expired matters: Rights, jurisdictions, privileges or other matters not in existence or force are not revived merely because of the repeal and savings clause.
Definitions and legal concepts
Repeal: Legislative withdrawal of an earlier enactment or provision, taking effect according to the relevant commencement and transitional rules.
Savings clause: A provision preserving identified rights, proceedings, liabilities or other legal consequences notwithstanding repeal.
Pending proceeding: A case or proceeding already instituted and not finally disposed of at the legally relevant point in time. The specific saving determines which proceedings qualify.
Accrued right or incurred liability: A legal entitlement or obligation that arose under the earlier law before repeal; Section 6 of the General Clauses Act may protect such matters unless a contrary intention appears.
Commencement notification: An official notification specifying when a statutory provision comes into force, where the statute permits phased commencement.
Practical application of Section 243
For a legacy personal insolvency matter, first identify the governing statute, filing date, forum, and relevant IBC commencement notifications. Then determine whether the proceeding or act is within Section 243(2) or Section 6 of the General Clauses Act. The answer can differ between a pending case, a completed order and a proposed new filing. In addition, the phased implementation of Part III of the IBC must be considered, particularly the provisions notified for personal guarantors to corporate debtors.
Related provisions and official legal sources
IBC Section 1(3): Enables different commencement dates for different provisions. Section 243: Repeal and savings. Section 244: Transitional provisions. General Clauses Act, 1897, Section 6: General effect of repeal.
Read the Insolvency and Bankruptcy Code, 2016 overview, the India Code legislation portal, the IBBI legal framework and notifications, and the Ministry of Corporate Affairs. These official sources should be consulted to confirm the applicable text, commencement and later legal developments.
Frequently asked questions
Which Acts are named in Section 243?
The Presidency Towns Insolvency Act, 1909 and the Provincial Insolvency Act, 1920.
Are all older insolvency cases automatically dismissed?
No. Clause (i) expressly provides for continuation of qualifying pending proceedings, subject to the provision's operative commencement and statutory conditions.
Does Section 243 protect orders made under the earlier Acts?
Clause (ii) protects specified existing orders and instruments, while clause (iii) addresses the validity of earlier acts and proceedings. The facts and applicable commencement date remain important.
What is the purpose of Section 6 of the General Clauses Act?
It supplies general savings consequences of a repeal, including protection for certain accrued rights, liabilities and pending legal proceedings unless the new law indicates a different intention.
Does the repeal take effect merely because the IBC was enacted in 2016?
No. The operative commencement of Section 243 must be established from the relevant government notification and applicable law.
Reviewed 23 October 2026. General legal information only. Confirm operative commencement and any later amendments before taking action.