Sections 228 to 230 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.
Three housekeeping sections in Part V govern how the Insolvency and Bankruptcy Board of India (the Board) plans, reports and delegates. Section 228 requires an annual budget sent to the Central Government. Section 229 requires an annual report to the Central Government, which is then laid before each House of Parliament. Section 230 lets the Board delegate its powers and functions to a member or officer by written order, but not the powers under section 240. Section 227, which comes just before them, has its own post: financial service providers under section 227. This article follows the IBBI consolidated text of the Code amended up to 12 August 2021.
Budget (section 228): the Board prepares its budget for the next financial year, "in such form and at such time ... as may be prescribed", showing estimated receipts and expenditure, and forwards it to the Central Government. Annual report (section 229): a full account of the previous financial year's activities goes to the Central Government, which lays a copy before each House of Parliament. Delegation (section 230): the Board may, by general or special order in writing, delegate powers and functions to a member or officer, except the powers under section 240 (regulations).
Section 228: the budget
"The Board shall prepare, in such form and at such time in each financial year as may be prescribed, its budget for the next financial year, showing the estimated receipts and expenditure of the Board and forward the same to the Central Government."
The elements are:
- Who: the Board.
- What: its budget for the next financial year, "showing the estimated receipts and expenditure".
- When and how: "in such form and at such time in each financial year as may be prescribed". The form and time are left to the rules; section 239(2)(zl) lists "the form and the time for preparing budget by the Board under section 228" as a rule-making matter.
- To whom: the Central Government.
The section does not say that the Central Government approves, amends or publishes the budget. It says only that the Board forwards it. This article adds nothing beyond that; a reader who needs to separate what the Code requires from what is said elsewhere about the Board's planning can take a legal consultation. The financing of the Board through grants and its Fund is covered in sections 221 and 222 (see article 130).
Section 229: the annual report
(1) "The Board shall prepare, in such form and at such time in each financial year as may be prescribed, its annual report, giving a full account of its activities during the previous financial year, and submit a copy thereof to the Central Government."
(2) "A copy of the report received under sub-section (1) shall be laid, as soon as may be after it is received, before each House of Parliament."
Two points. The duty to lay the report is on the receiving side: the text says the copy "received under sub-section (1) shall be laid", without naming who lays it. The report covers the "previous financial year", while the budget in section 228 looks to the "next".
Section 239(2)(zm) lets the rules cover "the form and the time for preparing annual report under sub-section (1) of section 229". The rules that implement this section are the Insolvency and Bankruptcy Board of India (Annual Report) Rules, 2018; the copy consulted is amended up to 16.09.2020. The date of that copy does not show that any provision of the Amendment Act, 2026 is in force.
Example (invented). For a given financial year the Board completes its activities, prepares an annual report in the prescribed form and sends a copy to the Central Government. Under sub-section (2), as soon as may be after the copy is received, it is laid before both Houses of Parliament. The budget for the following year, prepared under section 228, is a separate document forwarded to the Central Government.
Section 230: delegation
"The Board may, by general or special order in writing delegate to any member or officer of the Board subject to such conditions, if any, as may be specified in the order, such of its powers and functions under this Code (except the powers under section 240 as it may deem necessary."
Reading it by parts:
- Form of delegation: "general or special order in writing". A general order covers a class of cases; a special order covers a particular case. The text does not define the terms.
- Who can receive it: "any member or officer of the Board".
- Conditions: "subject to such conditions, if any, as may be specified in the order".
- What can be delegated: "such of its powers and functions under this Code ... as it may deem necessary", with one exclusion: "the powers under section 240".
- The exclusion: section 240 is the Board's power to make regulations. The Board may not delegate that power.
A printing point: the opening bracket before "except" is never closed in the text. The sentence is quoted as printed, and the reader should not treat the missing bracket as changing the exclusion, which is clear from the words "except the powers under section 240".
Other sections of the Code confine particular decisions to particular members. Section 201(5), for example, says no order suspending or cancelling an agency's certificate "shall be passed by any member except whole-time members of the Board" (see article 122). The text of section 230 does not say how a delegation order and such a provision are to be read together, and this article draws no conclusion.
| Section | Duty | To whom | Parliament |
|---|---|---|---|
| 228 | Prepare and forward budget for the next financial year | Central Government | Not mentioned |
| 229 | Prepare and submit annual report for the previous financial year | Central Government | Copy laid before each House |
| 230 | Delegate powers and functions by written order | Member or officer | Not mentioned |
The Amendment Act, 2026
The Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026) does not amend sections 228, 229 or 230. 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 related 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 reading the Board's reporting and delegation provisions?
If you are checking whether an act was done by the right person on the Board's behalf, or what the Board must report, the delegation order and the text of the section are the starting points. We can review them with you in a legal consultation.
Key takeaways
- The Board prepares its budget for the next financial year and forwards it to the Central Government.
- The annual report covers the previous financial year and a copy is laid before each House of Parliament.
- The form and time for both are left to the rules.
- The Board may delegate powers and functions to a member or officer by general or special order in writing.
- The power to make regulations under section 240 cannot be delegated under section 230.
Read next
- Sections 225 and 226: directions by the Central Government and supersession of the Board
- Sections 231 to 233: bar of jurisdiction, public servants and protection of action in good faith
- Section 240: power of the Board to make regulations
- Financial service providers under section 227
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.