IBC Sections 245 to 255: Amendments to Other Acts
Sections 245 to 255 of the Insolvency and Bankruptcy Code, 2016 (IBC) provide for consequential amendments to eleven Indian enactments. Each section refers to a corresponding Schedule of the Code, which contains the actual amendment instructions. This guide reproduces the provisions, identifies the affected Acts and explains their legal context.
Overview of the eleven amendments
The sections form part of the legislative framework for coordinating insolvency law with partnership law, taxation, debt recovery, secured-creditor enforcement, payment systems, limited liability partnerships and company law. The sections are not substitutes for their respective Schedules: the detailed insertions, substitutions and omissions are set out in the First to Eleventh Schedules.
Important: A provision that says an Act "shall be amended in the manner specified" incorporates the changes set out in its named Schedule. For current legal effect, read the schedule together with commencement notifications, later amendments, saving provisions and binding judgments.
Sections 245-255: Statutory provisions and explanations
Section 245: Amendment of the Indian Partnership Act, 1932
245. The Indian Partnership Act, 1932 shall be amended in the manner specified in the First Schedule.
Act reference: Act 9 of 1932. Relevant IBC schedule: First Schedule. The amendment links partnership insolvency law to the IBC framework. Its practical effect depends on the commencement and applicable provisions of the relevant legislation.
Section 246: Amendment of the Central Excise Act, 1944
246. The Central Excise Act, 1944 shall be amended in the manner specified in the Second Schedule.
Act reference: Act 1 of 1944. Relevant IBC schedule: Second Schedule. The schedule coordinates central excise legislation with the IBC. Legacy excise matters require attention to transitional and saving provisions.
Section 247: Amendment of the Income-tax Act, 1961
247. The Income-tax Act, 1961 shall be amended in the manner specified in the Third Schedule.
Act reference: Act 43 of 1961. Relevant IBC schedule: Third Schedule. The amendment is relevant to the interaction between income-tax law and insolvency proceedings. The applicable tax treatment must be determined under the current tax statute and IBC provisions.
Section 248: Amendment of the Customs Act, 1962
248. The Customs Act, 1962 shall be amended in the manner specified in the Fourth Schedule.
Act reference: Act 52 of 1962. Relevant IBC schedule: Fourth Schedule. The schedule addresses the interface of customs law and the IBC; customs enforcement and insolvency claims must be assessed under the operative provisions and judicial decisions.
Section 249: Amendment of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993
249. The Recovery of Debts due to Banks and Financial Institutions Act, 1993 shall be amended in the manner specified in the Fifth Schedule.
Act reference: Act 51 of 1993. Relevant IBC schedule: Fifth Schedule. The statute is now titled the Recovery of Debts and Bankruptcy Act, 1993. Its interaction with the IBC includes debt-recovery forums and personal insolvency, subject to commencement notifications.
Section 250: Amendment of the Finance Act, 1994
250. The Finance Act, 1994 shall be amended in the manner specified in the Sixth Schedule.
Act reference: Act 32 of 1994. Relevant IBC schedule: Sixth Schedule. The schedule coordinates the Finance Act with the IBC. For service-tax matters, also examine the GST transition and applicable savings.
Section 251: Amendment of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
251. The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 shall be amended in the manner specified in the Seventh Schedule.
Act reference: Act 54 of 2002. Relevant IBC schedule: Seventh Schedule. The SARFAESI Act concerns secured-creditor enforcement. IBC moratorium, liquidation and priority provisions may affect enforcement during insolvency proceedings.
Section 252: Amendment of the Sick Industrial Companies (Special Provisions) Repeal Act, 2003
252. The Sick Industrial Companies (Special Provisions) Repeal Act, 2003 shall be amended in the manner specified in the Eighth Schedule.
Act reference: Act 1 of 2004. Relevant IBC schedule: Eighth Schedule. This amendment forms part of the transition away from the earlier sick-industrial-company regime. Check relevant repeal, transfer and saving notifications.
Section 253: Amendment of the Payment and Settlement Systems Act, 2007
253. The Payment and Settlement Systems Act, 2007 shall be amended in the manner specified in the Ninth Schedule.
Act reference: Act 51 of 2007. Relevant IBC schedule: Ninth Schedule. The schedule addresses the interface between payment-system regulation and insolvency law; applicable statutory protections and exceptions must be considered.
Section 254: Amendment of the Limited Liability Partnership Act, 2008
254. The Limited Liability Partnership Act, 2008 shall be amended in the manner specified in the Tenth Schedule.
Act reference: Act 6 of 2009. Relevant IBC schedule: Tenth Schedule. The amendment coordinates LLP law with insolvency processes. LLPs are corporate persons for relevant IBC purposes, subject to the Code and notifications.
Section 255: Amendment of the Companies Act, 2013
255. The Companies Act, 2013 shall be amended in the manner specified in the Eleventh Schedule.
Act reference: Act 18 of 2013. Relevant IBC schedule: Eleventh Schedule. The schedule coordinates company law with the IBC, including the corporate insolvency and winding-up framework. Later Companies Act amendments also matter.
Legal definitions and principles
| Term | Meaning |
|---|---|
| Consequential amendment | A statutory change to another enactment made to align that law with the principal legislation. |
| Schedule | A part of an Act that contains detailed provisions or amendment instructions and must be read with the enabling section. |
| Commencement notification | An official notification specifying when a provision comes into force, where the enactment permits appointed dates. |
| Saving provision | A provision preserving specified existing rights, liabilities, proceedings or actions despite a legal change or repeal. |
| Moratorium | A statutory restriction on specified actions during an insolvency process, such as the corporate insolvency resolution process under Section 14, subject to its terms and exceptions. |
How to apply these amendments
- Identify the relevant section from 245 to 255 and its corresponding Schedule.
- Read the exact text of the Schedule to establish the amendment made to the other Act.
- Check the relevant commencement notification and whether the provision was in force on the material date.
- Review later amendments to the affected Act and any transitional or saving rules.
- Apply the operative provisions in light of relevant IBC provisions and binding judicial interpretation.
Interaction with other IBC provisions
Section 238 addresses the IBC's overriding effect where there is inconsistency with another law. Section 243 concerns repeal of specified older insolvency enactments and savings. Sections 245 to 255 serve a different function: they expressly amend identified statutes through the Schedules. They should not be treated as a blanket repeal of those eleven Acts.
Frequently asked questions
What do IBC Sections 245 to 255 cover?
They provide for amendments to eleven Acts, beginning with the Indian Partnership Act, 1932 and ending with the Companies Act, 2013, through the First to Eleventh Schedules of the IBC.
Do these sections contain all the amendments?
No. The sections identify the affected enactments. The detailed statutory changes appear in the corresponding Schedules.
Is the Fifth Schedule still relevant after the renaming of the 1993 Act?
Yes, historical statutory references should be read in context. The Recovery of Debts Due to Banks and Financial Institutions Act, 1993 is now known as the Recovery of Debts and Bankruptcy Act, 1993.
Does Section 255 repeal the Companies Act, 2013?
No. It provides for specific amendments to that Act through the Eleventh Schedule. The Companies Act continues to operate subject to its current provisions and applicable IBC law.
How can I verify the law currently in force?
Consult the consolidated legislation and official notifications. In particular, check the IBC Schedules, commencement orders and later amendments to the affected Acts.
Official legal sources and further reading
- India Code - Central Acts and statutory schedules
- IBBI - Legal framework, Acts, rules and regulations
- Ministry of Corporate Affairs - Corporate law and notifications
- Central Board of Indirect Taxes and Customs
- The Insolvency and Bankruptcy Code, 2016 - Section index
Updated: 23 October 2026. This article explains the provisions in the supplied webpage. Verify the current consolidated text, schedules and effective dates before relying on a particular amendment.