Sections 231 to 233 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 short sections in Part V close off parallel litigation and protect those who administer the Code. Section 231 bars civil courts, and any injunction by a court or other authority, in matters where the Adjudicating Authority or the Insolvency and Bankruptcy Board of India (the Board) can pass an order. Section 232 deems the Board's Chairperson, Members, officers and employees to be public servants. Section 233 shields the Government, the Board's people, an insolvency professional and a liquidator from suits and prosecutions for things done in good faith. This article follows the IBBI consolidated text of the Code amended up to 12 August 2021.
Section 231: no civil court has jurisdiction in any matter in which the Adjudicating Authority or the Board is empowered by or under the Code to pass an order, and no injunction may be granted by any court or other authority against action taken or to be taken under such an order. Section 232: the Board's people are public servants when acting or purporting to act under the Code. Section 233: no suit, prosecution or other legal proceeding lies for anything done or intended to be done in good faith under the Code or the rules or regulations.
Section 231: bar of jurisdiction
"No civil court shall have jurisdiction in respect of any matter in which the Adjudicating Authority or the Board is empowered by, or under, this Code to pass any order and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any order passed by such Adjudicating Authority or the Board under this Code."
The sentence has two limbs.
- Jurisdiction. A civil court has no jurisdiction "in respect of any matter in which the Adjudicating Authority or the Board is empowered by, or under, this Code to pass any order". The bar turns on the empowerment, not on whether an order has been passed.
- Injunction. No injunction shall be granted "by any court or other authority" in respect of any action "taken or to be taken in pursuance of any order passed" by the Adjudicating Authority or the Board under the Code. This limb speaks of any court or other authority, and of action already taken or yet to be taken.
The words "the Adjudicating Authority or the Board" are shown in the text with a footnote reading "Ins. by Act No. 26 of 2018, sec. 33 (w.e.f. 6-6-2018)". The text therefore reads, as it stands in the consolidated copy, with the Board named alongside the Adjudicating Authority.
Notice also what the section does not say. It does not mention appeals; the routes of appeal are set by the Code's other sections (for the corporate persons' route, see our post on appeals to the NCLAT and the Supreme Court). The section is only about civil courts and injunctions. Sections 63, 64 and 64A, which sit in the Chapter on the Adjudicating Authority for corporate persons, are covered in article 055. If you are considering a step that sits close to this line, a legal dispute resolution review of the order and the forum is the safe start.
Example (invented). A creditor, Southfield Finance, is unhappy with an order that the Adjudicating Authority has passed in a process under the Code. It files a suit in a civil court to stop the resolution professional from acting on the order. Section 231 says no civil court has jurisdiction in a matter where the Adjudicating Authority is empowered to pass an order, and no injunction may be granted by any court or other authority against action taken in pursuance of the order. The remedy, if any, is found in the appeal provisions of the Code, which this article does not explain.
Section 232: public servants
"The Chairperson, Members, officers and other employees of the Board shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this Code, to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860)."
- Who: the Chairperson, Members, officers and other employees of the Board. Insolvency professionals, liquidators and the Adjudicating Authority's staff are not named.
- When: "when acting or purporting to act in pursuance of any of the provisions of this Code". The word "purporting" extends the deeming to acts that were intended to be under the Code even if they exceed it.
- Effect: they are deemed public servants within the meaning of the section of the Indian Penal Code named. The reference is quoted as printed; the reader should check the current law for the corresponding provision.
Section 233: protection of action in good faith
"No suit, prosecution or other legal proceeding shall lie against the Government or any officer of the Government, or the Chairperson, Member, officer or other employee of the Board or an insolvency professional or liquidator for anything which is in done or intended to be done in good faith under this Code or the rules or regulations made thereunder."
The text prints "which is in done", a slip that is quoted as printed. The section covers:
| Protected person | Described as |
|---|---|
| Government | "the Government or any officer of the Government" |
| Board | "the Chairperson, Member, officer or other employee of the Board" |
| Insolvency professional | "an insolvency professional" |
| Liquidator | "liquidator" |
The protection attaches to "anything which is ... done or intended to be done in good faith" under the Code or the rules or regulations. Three limits show on the face of the text. It is tied to good faith; it covers things "intended to be done" as well as things done; and it bars suits, prosecutions and "other legal proceeding". The section does not name a resolution professional, an interim resolution professional or a bankruptcy trustee separately, and this article does not read them in. Whether such persons are covered as an "insolvency professional" depends on how the Code's definitions apply to them; check the definitions in section 3 and the sections that appoint them.
| Section | Effect | Who it concerns |
|---|---|---|
| 231 | Civil court bar and no injunction | Anyone seeking relief in a civil court or from another authority |
| 232 | Deemed public servants | Board's Chairperson, Members, officers, employees |
| 233 | No suit, prosecution or other proceeding for good-faith action | Government, Board's people, insolvency professional, liquidator |
For the wider override clause in section 238, see article 138.
The Amendment Act, 2026
The Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026) does not amend sections 231, 232 or 233. 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 with a forum or a protection question?
Whether a civil suit is barred, or whether an act is protected as done in good faith, turns on the order, the section under which it was passed and the facts. We can go through the papers with you in legal dispute resolution support before you file or reply.
Key takeaways
- Section 231 bars civil courts, and any injunction by a court or other authority, where the Adjudicating Authority or the Board is empowered to pass an order.
- Section 232 deems the Board's Chairperson, Members, officers and employees to be public servants when acting or purporting to act under the Code.
- Section 233 protects the Government, the Board's people, an insolvency professional and a liquidator for things done or intended to be done in good faith.
- The Code's references to the Indian Penal Code should be checked against the current law.
- The Amendment Act, 2026 does not amend these sections.
Read next
- Sections 228 to 230: budget, annual report and delegation by the Board
- Sections 234 and 235: agreements with foreign countries and letter of request
- Section 238: provisions of the Code to override other laws
- Sections 63, 64 and 64A: civil court bar and penalty for frivolous proceedings
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.