Section 239 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 239 is the Central Government's general rule-making power under the Code. Sub-section (1) lets it make rules "for carrying out the provisions of this Code"; sub-section (2) lists matters on which rules may be made, from forms and fees to the manner of administering the Insolvency and Bankruptcy Fund. This article groups the clauses by subject instead of listing all of them, and then shows how the Insolvency and Bankruptcy Code (Amendment) Act, 2026 changes the list. It follows the IBBI consolidated text of the Code amended up to 12 August 2021.
Sub-section (1): the Central Government may, by notification, make rules for carrying out the provisions of the Code. Sub-section (2): without prejudice to that, rules may cover specified matters, which in the consolidated text run from clause (a) to clause (zn), most of them the form, manner and fee of an application or the particulars of a notice. The 2026 Act changes "provisions" to "purposes" in sub-section (1), omits clause (ea), adds clauses (ff), (fg), (fh), (zia), (zib) and (zma) and substitutes clause (zi). 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.
Sub-section (1): the general power
"The Central Government may, by notification, make rules for carrying out the provisions of this Code."
Three elements: the maker (the Central Government), the instrument (a notification), and the object ("carrying out the provisions of this Code"). Rules made under this section are different from the Board's regulations under section 240 (see article 140). Section 241 requires every rule and regulation made under the Code to be laid before Parliament (article 142). If you need to know whether a particular rule or form is in force, the text of the Code cannot tell you; a legal consultation can start from the clause that authorises it and the rule you hold.
Sub-section (2): the matters, grouped by subject
Sub-section (2) says "Without prejudice to the generality of the provisions of sub-section (1), the Central Government may make rules for any of the following matters, namely". The clauses are grouped below. Each group states the clauses in the consolidated text and the section they point to.
| Subject | Clauses | What the rules may cover (as printed) |
|---|---|---|
| Definitions | (a), (b), (g), (h), (i) | other instruments that are a financial product under clause (15) of section 3; other accounting standards that are a financial debt under section 5(8)(d); persons who are "relative" under section 79(1); value of an unencumbered single dwelling unit under section 79(13)(e); the value and other debt under section 79(14)(c) and (f) |
| Corporate applications | (c), (d), (e), (f) | form, manner and fee for applications under sections 7(2), 9(2) and 10(2); form and manner of the demand notice and its delivery under section 8(1) |
| Other proof, transactions | (ea), (fa), (fb), (fc) | other proof of no payment of an unpaid operational debt under section 9(3)(e); transactions under the second proviso to section 21(2), Explanation I to section 29A(c) and the second proviso to section 29A(j) |
| Pre-packaged process | (fd), (fe) | form, particulars, manner and fee under section 54C(2); conditions and restrictions on promoters, members, personnel and partners under section 54H(c) |
| Fresh start | (j), (k), (l) | form, manner and fee for the fresh start application under section 81(3); particulars of the debtor's personal details under section 81(3)(e); information and documents under section 86(3) |
| Insolvency resolution of individuals | (m), (n), (o) | form, manner and fee for applications by the debtor (section 94(6)) and the creditor (section 95(6)); particulars the creditor provides to the resolution professional (section 103(2)) |
| Bankruptcy | (p) to (zc) | applications and statement of affairs (sections 122, 123); statement of financial position (129); public notice and notice to creditors (130); claims (131); value of a transaction (141(1)(d)); things a bankrupt does to assist the trustee (150(1)(d)); surplus (170(4)); proof of debt and dividends (171); notice (176(2)) |
| The Board | (zd), (ze) | salaries and allowances of the Chairperson and members (189(5)); other functions of the Board (196(1)(u)) |
| Funds and accounts | (zf), (zg), (zh), (zi), (zj) | other funds (222(1)(c)); other purposes (222(2)(d)); form of annual statement of accounts (223(1)); withdrawal purposes (224(3)); manner of administering the Fund (224(4)) |
| Financial service providers | (zk) | manner of conducting insolvency and liquidation proceedings under section 227 |
| Budget, report, transition | (zl), (zm), (zn) | form and time for budget (228) and annual report (229(1)); time up to which a person appointed to office continues under section 243(2)(vi) |
The same clauses show how the Code leaves a great deal to rules: the form, manner and fee for an application, the particulars of a notice, and the value or class of a person. The rules themselves are not in the texts consulted, so no form, fee or amount is stated here.
Clause (zi) in the consolidated text speaks of "the purpose for which application for withdrawal of funds may be made under sub-section (3) of section 224"; the 2026 Act replaces it (see below).
Example (invented). A lender, Orion Capital, wants to file an application under section 7 as a financial creditor. The Code in section 7(2) refers to a form, manner and fee as prescribed. Clause (c) of section 239(2) is the source of the Central Government's power to prescribe them. The Code itself does not print the form or the fee, and neither does this article.
What the Amendment Act, 2026 changes
Section 69 of the Amendment Act amends section 239.
| Provision | As printed in the consolidated text | After the 2026 Act |
|---|---|---|
| (1) | "for carrying out the provisions of this Code" | "for carrying out the purposes of this Code" (the word "provisions" is replaced by "purposes") |
| (2)(ea) | other proof confirming that there is no payment of an unpaid operational debt by the corporate debtor, or other information under clause (e) of section 9(3) | Omitted |
| (2) after (fe) | none | (ff) "the conditions under sub-section (1) of section 58B"; (fg) "the fee for filing an objection under sub-section (1) of section 58C"; (fh) "the manner and conditions under sub-section (1) of section 59A" |
| (2)(zi) | "the purpose for which application for withdrawal of funds may be made under sub-section (3) of section 224" | Substituted: "(zi) the other sources of amounts to be credited to the Insolvency and Bankruptcy Fund under clause (e) of sub-section (2) of section 224" |
| (2) after (zi) | none | (zia) "the purposes under clause (a) of sub-section (3) of section 224"; (zib) "the other purposes and the manner under clause (b) of sub-section (3) of section 224" |
| (2) after (zm) | none | (zma) "the manner and conditions under sub-section (1) of section 240C" |
Reading the changes:
- "purposes" for "provisions". The Act's words in sub-section (1) are "for the word 'provisions', the word 'purposes' shall be substituted". Sub-section (1) after the 2026 Act therefore reads (built from the Act's words): "The Central Government may, by notification, make rules for carrying out the purposes of this Code."
- Clause (ea) omitted. Section 70 of the Amendment Act separately adds a clause (fa) to section 240(2), covering "other information under clause (e) of sub-section (3) of section 9" (article 140). The Act does not say that one replaces the other.
- New clauses (ff), (fg) and (fh) point to the creditor-initiated process (sections 58B and 58C) and group insolvency (section 59A). The rules on those are not in the texts consulted.
- Clauses (zi), (zia) and (zib) follow the changes to section 224 (article 131).
- Clause (zma) gives a rule-making matter for the cross-border power in new section 240C (article 141).
Rules and regulations
No rule set is named here, since section 239 is itself the source of the rules. The date of any rule copy does not show that any provision of the Amendment Act, 2026 is in force.
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 finding the rule behind a form, fee or process?
Many steps under the Code depend on a rule made under section 239. Our team can trace the clause that authorises a rule, and check the text you hold against it, in a legal consultation.
Key takeaways
- Section 239(1) is the general power to make rules by notification; sub-section (2) lists matters without limiting it.
- Most clauses concern the form, manner and fee of applications and the particulars of notices.
- The consolidated text lists clauses (a) to (zn); the 2026 Act omits (ea), adds (ff), (fg), (fh), (zia), (zib) and (zma), and substitutes (zi).
- The 2026 Act changes "provisions" to "purposes" in sub-section (1).
- The Amendment Act, 2026 comes into force by notification; check whether it has been notified.
Read next
- Section 240: power of the Board to make regulations
- Sections 241 and 242: laying of rules before Parliament and power to remove difficulties
- Section 224: the Insolvency and Bankruptcy Fund
- Section 238: provisions of the Code to override other laws
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.