Sections 197 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 197 lets the Insolvency and Bankruptcy Board of India constitute advisory and executive committees, or other committees, to discharge its functions efficiently. Section 198 lets the relevant Adjudicating Authority condone the Board's delay, for reasons recorded in writing, where the Board does not perform an act within a period specified in the Code.
The article follows the IBBI consolidated text of the Code amended up to 12 August 2021 (the "consolidated text").
The Board may constitute advisory and executive committees, or others it thinks fit, consisting of a Chairperson and such other members as may be specified by regulations. Where the Board does not perform an act within the period specified under the Code, the relevant Adjudicating Authority may condone the delay, for reasons recorded in writing, notwithstanding anything contained in the Code.
Section 197: committees
The section reads: "The Board may, for the efficient discharge of its functions, may constitute advisory and executive committees or such other committees, as it may deem fit, consisting of a Chairperson and such other members as may be specified by regulations."
Printing note. The word "may" appears twice ("The Board may, for the efficient discharge of its functions, may constitute ..."). It is quoted as printed.
| Element | Words in the text |
|---|---|
| Who constitutes | The Board |
| Purpose | The efficient discharge of its functions |
| Types | Advisory and executive committees, or such other committees as it may deem fit |
| Composition | A Chairperson and such other members as may be specified by regulations |
| Power | "May": discretionary |
Several observations follow from the words.
- The power is discretionary. The Board "may" constitute committees; the Code does not oblige it to constitute any particular one.
- The Board names the types, not the Code. Advisory and executive committees are named; the Code does not list their tasks, and does not say whether a committee may take decisions for the Board.
- Composition is by regulations. "Such other members as may be specified by regulations." The members, other than the Chairperson of the committee, are not limited to members of the Board in the words of the section; the section says only that regulations specify them.
- A cross-reference from section 196. Section 196(1)(l) lists as a function of the Board to "constitute such committees as may be required including in particular the committees laid down in section 197". So section 197 is the section that clause refers to: see Section 196 of this series.
The Code does not say how a committee's recommendations are treated by the Board, or what the committee's quorum and procedure are. The meetings of the Board itself are dealt with in section 192, which is explained in Sections 190 to 193. If a committee of the Board is involved in a decision affecting you, a legal consultation with our team can help you read the text against the facts.
Section 198: condonation of delay
"Notwithstanding anything contained in this Code, where the Board does not perform any act within the period specified under this Code, the relevant Adjudicating Authority may, for reasons to be recorded in writing, condone the delay."
Take it phrase by phrase.
| Phrase | Meaning on the words |
|---|---|
| "Notwithstanding anything contained in this Code" | The power overrides contrary provisions of the Code |
| "Where the Board does not perform any act within the period specified under this Code" | The trigger is a missed period that the Code itself specifies for an act of the Board |
| "The relevant Adjudicating Authority" | The Adjudicating Authority that has the matter; the Code has different Adjudicating Authorities for corporate persons and for individuals and firms |
| "May" | Discretionary |
| "For reasons to be recorded in writing" | The condonation must be reasoned, in writing |
| "Condone the delay" | The delay is excused; the text does not say for how long |
Who is the "relevant Adjudicating Authority"? Section 60 deals with the Adjudicating Authority for corporate persons and section 179 with the Debt Recovery Tribunal for individuals and firms, as explained in Sections 179 and 180. Section 198 says "relevant" and does not itself name either. Which applies depends on the matter in which the Board's act was due.
Which periods? The section does not list them. A time limit for the Board appears in various places in the Code, for example in the replacement of a bankruptcy trustee, where the Board must recommend a replacement within ten days of the direction of the Adjudicating Authority: see Sections 143 to 145 and Sections 146 to 148. Section 198 is the general provision that allows the delay to be condoned.
What it does not say. It does not say who may apply, whether the Adjudicating Authority may act on its own motion, whether there is an outer limit on the condonation or what follows if condonation is refused. The text is silent on all of these points. Compare section 183, which deals with a Debt Recovery Tribunal or the Debt Recovery Appellate Tribunal that does not dispose of an application within a Code period and allows an extension of not more than ten days: see Sections 181 to 183A. Section 198 concerns the Board; section 183 concerns the tribunals. The two have different words.
A worked example
Under a provision of Part III, the Adjudicating Authority directs the Board to recommend a replacement bankruptcy trustee, and the Board must recommend one within ten days. The Board takes thirteen days. Section 198 allows the relevant Adjudicating Authority, for reasons recorded in writing, to condone the delay. The condonation must be in writing, with reasons; a bare indulgence would not satisfy the words.
On committees, suppose the Board considers that a particular matter needs expert input. It may, under section 197, constitute an advisory committee, consisting of a Chairperson and other members as specified by regulations. The facts are invented; the example shows how the words operate, not how any authority has applied them.
The chapter in context
Sections 197 and 198 close Chapter II of Part IV. The chapter's other section is section 196. The live post on IBBI establishment and constitution under sections 188 to 198 takes the whole range. The next chapter, on insolvency professional agencies, starts with section 199: see the live post on insolvency professional agency registration under sections 199 to 205.
Law around these sections
The Amendment Act, 2026 (No. 6 of 2026) has no clause that amends sections 197 or 198. It does amend section 196, to which section 197 is tied by clause (l). The Amendment Act, 2026 comes into force on the date or dates the Central Government notifies; the notification is not in the texts consulted, so check whether any change to section 196 has been notified.
Amendments and notifications made after 12 August 2021, other than the Amendment Act, 2026, are not in the texts consulted and should be checked.
Need help with a Board delay or committee question?
If a time limit for the Board has passed in a matter you are involved in, or a committee of the Board has acted on your case, the wording of sections 197 and 198 matters. Our team can help you review the position through a legal consultation.
Key takeaways
- The Board may constitute advisory and executive committees, or others it deems fit, for the efficient discharge of its functions.
- Committee composition (a Chairperson and other members) is as specified by regulations.
- Where the Board does not perform an act within a period specified in the Code, the relevant Adjudicating Authority may condone the delay.
- Condonation requires reasons recorded in writing.
- The text does not say who may ask for condonation or how long a condonation may be.
Read next
- Section 196 of the Insolvency and Bankruptcy Code, 2016: powers and functions of the Board
- Sections 194 and 195: vacancies, officers of the Board and designated financial sector regulator
- Sections 190 to 193: removal of members, powers of the Chairperson and meetings of the Board
- The Insolvency and Bankruptcy Board of India
Disclaimer: Based on the IBBI consolidated text of the Insolvency and Bankruptcy Code, 2016 amended up to 12 August 2021 and on the Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026), which comes into force on the date or dates notified by the Central Government, as consulted on 2 October 2026. It explains the words of the statute only; commencement notifications, other amendments made after 12 August 2021, notified thresholds, the rules and IBBI regulations, and the way tribunals and courts apply these sections should be checked. This article is general information, not legal advice; check the official text before acting.