Sections 201 and 202 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 201 sets out how an insolvency professional agency applies to the Insolvency and Bankruptcy Board of India (the Board) for registration, how the Board grants, rejects, renews, suspends or cancels a certificate, and what safeguards the agency has. Section 202 gives an aggrieved agency an appeal to the National Company Law Appellate Tribunal. Both are explained here as per the IBBI consolidated text of the Code amended up to 12 August 2021.
An agency applies to the Board; the Board must acknowledge the application within seven days and may grant a certificate or reject it by order after hearing the applicant, communicating the order within fifteen days. The Board may renew the certificate, and may suspend or cancel it on four grounds, only after a reasonable opportunity of being heard and only by an order passed by whole-time members. Section 202 provides an appeal to the National Company Law Appellate Tribunal against an order under section 201.
Section 201(1): the application
"Every application for registration shall be made to the Board in such form and manner, containing such particulars, and accompanied by such fee, as may be specified by regulations." The text leaves form, particulars and fee to regulations. The proviso adds the one time limit that binds the Board at this stage: "every application received by the Board shall be acknowledged within seven days of its receipt".
Section 199 (see article 121) makes the certificate a condition of doing business as an agency, so section 201 is the route by which a body gets lawfully to that position. Anyone planning an application, or defending an order, can take a legal consultation to line up the documents against the section.
Section 201(2) and (3): grant or rejection
On receipt of the application, the Board "may, on being satisfied that the application conforms with all requirements specified under sub-section (1), grant a certificate of registration to the applicant or else, reject, by order, such application". Two provisos protect the applicant:
- No order rejecting the application shall be made "without giving an opportunity of being heard to the applicant".
- Every order so made "shall be communicated to the applicant within a period of fifteen days".
The text does not say from which date the fifteen days run. It says only that the order shall be communicated within a period of fifteen days; the reader should not assume a starting point the section does not print.
Sub-section (3) adds that the Board "may issue a certificate of registration to the applicant in such form and manner and subject to such terms and conditions as may be specified". So the certificate can carry conditions, and section 199 requires the agency to act "in accordance with" the certificate.
Section 201(4): renewal
"The Board may renew the certificate of registration from time to time in such manner and on payment of such fee as may be specified." The word "may" is used for the Board; the section prints no period of validity and no time within which a renewal is to be sought. Those matters are left to what is specified.
Section 201(5): suspension and cancellation
The Board "may, by order, suspend or cancel the certificate of registration granted to an insolvency professional agency on any of the following grounds":
| Clause | Ground (as printed) |
|---|---|
| (a) | it has obtained registration by making a false statement or misrepresentation or by any other unlawful means |
| (b) | it has failed to comply with the requirements of the regulations made by the Board or bye-laws made by the insolvency professional agency |
| (c) | it has contravened any of the provisions of the Act or the rules or the regulations made thereunder |
| (d) | on any other ground as may be specified by regulations |
Two provisos follow. First, "no order shall be made under this sub-section unless the insolvency professional agency concerned has been given a reasonable opportunity of being heard". Second, "no such order shall be passed by any member except whole-time members of the Board". The section 240(2)(zzc) power lets the Board's regulations name "the other ground under clause (d) of sub-section (5) of section 201"; what has been specified is not in the texts consulted.
Note the difference in the hearing wording. For a rejection under sub-section (2) the proviso speaks of "an opportunity of being heard"; for suspension or cancellation under sub-section (5) it speaks of "a reasonable opportunity of being heard". The text uses the two phrases as printed; this article does not read more into the difference than that.
Example (invented). Northgate Professionals Forum holds a certificate. The Board finds that it has not followed bye-laws it made for itself (clause (b)). Before any suspension, the Board must give the Forum a reasonable opportunity of being heard, and the order must be passed by a whole-time member, not by a part-time member. If the Board suspends the certificate, the Forum can look to section 202.
Section 202: appeal to the Appellate Tribunal
"Any insolvency professional agency which is aggrieved by the order of the Board made under section 201 may prefer an appeal to the National Company Law Appellate Tribunal in such form, within such period, and in such manner, as may be specified by regulations." Four things stand out:
- Only the agency is named as the person who may appeal under this section.
- The appeal lies against an order made under section 201: a rejection under sub-section (2) and a suspension or cancellation under sub-section (5) are both orders of that kind.
- The text prints no period. The period, form and manner are left to regulations; section 240(2)(zzd) refers to "the form of appeal to the National Company Law Appellate Tribunal, the period within which it shall be filed under section 202".
- The text prints no stay or interim relief for the agency. It is silent on whether the order operates while the appeal is pending, and this article does not guess.
For appeals to the Appellate Tribunal in other parts of the Code, see our post on appeals to the NCLAT and the Supreme Court under the IBC.
Rules and regulations
The set that implements these sections is the Insolvency and Bankruptcy Board of India (Insolvency Professional Agencies) Regulations, 2016; the copy consulted is amended up to 04.07.2022. The date of that copy does not show that any provision of the Amendment Act, 2026 is in force.
The Amendment Act, 2026
The Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026) does not amend sections 201 or 202. It inserts a definition of "service provider" in section 3 that includes an insolvency professional agency, and it changes sections 217 to 220 to speak of a "service provider" (see article 128). 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 this change 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 an agency registration or an appeal?
An agency facing a rejection, suspension or cancellation has to act against the clock set by the regulations. A written note of the grounds, the hearing given and the order's date is the usual starting point. Our team can review the file with you in a legal consultation and help you work out the next step.
Key takeaways
- The Board must acknowledge an application within seven days of receipt.
- A rejection needs a hearing and the order must be communicated within fifteen days.
- A certificate may carry terms and conditions and may be renewed from time to time.
- Suspension or cancellation rests on four grounds and needs a reasonable opportunity of being heard and an order by whole-time members.
- Section 202 gives the agency an appeal to the National Company Law Appellate Tribunal; the period is left to regulations.
Read next
- Sections 199 and 200: certificate of registration and principles for registering agencies
- Sections 203 to 205: governing board, functions and bye-laws of an agency
- Sections 217 and 218: complaints against and investigation of service providers
- Insolvency professional agency registration under sections 199 to 205
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.