Section 238 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 238 is a single sentence with a wide reach. It says the provisions of the Code "shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any instrument having effect by virtue of any such law". This article reads the sentence word by word as per the IBBI consolidated text of the Code amended up to 12 August 2021, and then looks at the nearby sections that the text itself places beside it.
The provisions of the Code have effect even where another law in force, or an instrument having effect by virtue of such a law, says something inconsistent with them. The section says nothing about which laws, which provisions or which cases. It does not itself resolve any particular conflict; it states the rule that, where there is an inconsistency, the Code's provisions have effect. The Amendment Act, 2026 does not amend section 238.
The text
"The provisions of this Code shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any instrument having effect by virtue of any such law."
Taking the words in order.
"The provisions of this Code." The subject is the provisions of the Code. The section does not say "the provisions of this Part" or "the provisions of this Chapter". It is placed in Part V (Miscellaneous), so it applies across the Code.
"shall have effect." The verb is "shall have effect". The section does not say "prevail" or "supersede"; it says that the Code's provisions have effect, notwithstanding the inconsistent matter. This article uses the section's own words.
"notwithstanding anything inconsistent therewith." The opening qualifier is "inconsistent therewith". The section is engaged only when something is inconsistent with the Code. Where another law is consistent with the Code, or merely adds to it, the section by its terms is not engaged.
"contained in any other law for the time being in force." The inconsistent matter must be contained in "any other law". The words "for the time being in force" refer to laws in force at the time the question arises, not only at the date the Code was made. The section does not name any law.
"or any instrument having effect by virtue of any such law." The reach extends beyond statutes to instruments that have effect by virtue of such a law. The text does not define "instrument" or say which documents qualify. Whether a particular rule, order, notification or document is an "instrument having effect by virtue of" another law is a question the text does not answer, and the reader should not assume it from this article.
If you are asking whether a particular clause in a contract, a licence or a statutory order is affected, a legal dispute resolution review of the instrument and the law it rests on is the proper way to test it.
What the section does not say
- It does not say which law gives way in any particular conflict, other than that the Code's provisions have effect.
- It does not name any Act. Where the Code wants to speak to another Act, it does so in terms elsewhere, for example by amending the other Act through the Schedules (sections 245 to 255, explained in article 144 and article 145).
- It does not prescribe any procedure, forum or time limit.
- It prints no penalty.
- It does not decide whether a rule or regulation made under the Code is itself an "instrument having effect by virtue of" a law. The section speaks of instruments having effect by virtue of "any such law", meaning "any other law".
Because the section is general, it is sensible to read it with the specific override clauses that appear in particular sections of the Code. Several sections open with "Notwithstanding anything to the contrary contained in this Code" or "Notwithstanding anything contained in this Code or any law", for instance sections 227, 235 and 240A. Those clauses work within their own sections; section 238 is the general statement for the Code as a whole.
Nearby sections that sit beside it
| Section | What it does | Where explained |
|---|---|---|
| 231 | Bars civil courts and injunctions where the Adjudicating Authority or the Board can pass an order | Article 134 |
| 238A | Applies the Limitation Act, 1963 "as far as may be" to proceedings or appeals before the Adjudicating Authority, the National Company Law Appellate Tribunal, the Debt Recovery Tribunal or the Debt Recovery Appellate Tribunal | Our post on limitation under section 238A |
| 239 | Rule-making power of the Central Government | Article 139 |
| 243 | Repeals the two old insolvency Acts, with savings | Article 143 |
Section 238A is not an exception to section 238; it is a separate section that itself brings in another Act as far as may be. The text of section 238 does not mention it. The moratorium in section 14 is a provision of the Code like any other; our post on the section 14 moratorium explains it, and section 238 adds no words of its own to it.
The Schedules to the Code amend other Acts as the Code was made in 2016: the Indian Partnership Act, 1932, the Central Excise Act, 1944, the Income-tax Act, 1961, the Customs Act, 1962, the Recovery of Debts due to Banks and Financial Institutions Act, 1993, the Finance Act, 1994, the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, the Sick Industrial Companies (Special Provisions) Repeal Act, 2003, the Payment and Settlement Systems Act, 2007, the Limited Liability Partnership Act, 2008 and the Companies Act, 2013. The reader should check the current law for the corresponding provisions of each. The existence of those amendments shows that the Code deals with some conflicts by amending the other Act directly; section 238 is the general rule behind them.
Example (invented). Hillside Exports Private Limited is in a process under the Code. A provision in another law in force, and a notification under it, would, if applied, prevent a step that the Code allows. The Code's provisions "shall have effect" notwithstanding the inconsistent provision and the instrument. The section does not say how the conflict is to be resolved procedurally or before which forum; it only states the rule. Whether in a real case there is an inconsistency at all is for the specific provisions in question.
The Amendment Act, 2026
The Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026) does not amend section 238. It inserts new sections, some of which open with "Notwithstanding anything to the contrary contained in this Code", for example section 240B (electronic portal, see article 141). 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 conflict between the Code and another law?
Where a lender, licensor, regulator or counterparty relies on another law or an instrument under it, the first step is to set the two texts side by side. Our team can do that with you in a legal dispute resolution review and identify which provisions are said to be inconsistent.
Key takeaways
- Section 238 says the provisions of the Code have effect notwithstanding anything inconsistent in any other law in force or in any instrument having effect by virtue of such a law.
- The section is engaged only where there is an inconsistency.
- It names no law and prints no procedure, forum or penalty.
- "Instrument" is not defined in the section.
- The Amendment Act, 2026 does not amend section 238.
Read next
- Sections 231 to 233: bar of jurisdiction, public servants and protection of action in good faith
- Section 239: power of the Central Government to make rules
- Sections 63, 64 and 64A: civil court bar and penalty for frivolous proceedings
- The law of limitation under the IBC and acknowledgment of debt
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.