Sections 243 and 244 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 243 repeals the Presidency Towns Insolvency Act, 1909 and the Provincial Insolvency Act, 1920, and then saves a long list of things done, pending or continuing under them. Section 244 provides that until the Board is constituted or a financial sector regulator is designated, the Central Government exercises the Board's powers and functions, and lets it make regulations on recognising professionals and agencies, information utilities and the conduct of the processes. This article follows the IBBI consolidated text of the Code amended up to 12 August 2021.
Section 243(1): the two old Acts are repealed. Section 243(2): despite the repeal, pending proceedings continue under them, orders and instruments in force continue, things done are deemed valid, principles of law and practice are not affected, pending prosecutions continue, office-holders continue until a time prescribed, and matters not in existence are not revived. Section 243(3): section 6 of the General Clauses Act, 1897 is not prejudiced. Section 244: until the Board is constituted or a regulator designated, the Central Government exercises their powers, including making regulations on three listed matters.
Section 243(1): the repeal
"The Presidency Towns Insolvency Act, 1909 (3 of 1909) and the Provincial Insolvency Act, 1920 (5 of 1920) are hereby repealed."
The references are quoted as printed. Our post on the insolvency laws the Code consolidated gives the wider history, and the reader should check the current law for the corresponding provisions of the Acts named.
Section 243(2): what is saved despite the repeal
"Notwithstanding the repeal under sub-sections (1)", seven things are saved:
| Clause | What is saved (in the words of the text, shortened) |
|---|---|
| (i) | all proceedings pending under and relating to the two Acts immediately before the commencement of the Code "shall continue to be governed under the aforementioned Acts and be heard and disposed of by the concerned courts or tribunals, as if the aforementioned Acts have not been repealed" |
| (ii) | any order, rule, notification, regulation, appointment, conveyance, mortgage, deed, document or agreement made, fee directed, resolution passed, direction given, proceeding taken, instrument executed or issued, or thing done under or in pursuance of any repealed enactment "shall, if in force at the commencement of this Code, continue to be in force, and shall have effect as if the aforementioned Acts have not been repealed" |
| (iii) | anything done or any action taken or purported to have been done or taken, including any rule, notification, inspection, order or notice, appointment or declaration, operation, direction, proceeding or any penalty, punishment, forfeiture or fine imposed under the repealed enactments "shall be deemed valid" |
| (iv) | any principle or rule of law, or established jurisdiction, form or course of pleading, practice or procedure or existing usage, custom, privilege, restriction or exemption "shall not be affected", even if affirmed, recognised or derived by, in, or from, the repealed enactments |
| (v) | any prosecution instituted under the repealed enactments and pending immediately before the commencement of the Code before any court or tribunal "shall, subject to the provisions of this Code, continue to be heard and disposed of by the concerned court or tribunal" |
| (vi) | any person appointed to any office under or by virtue of any repealed enactment "shall continue to hold such office until such time as may be prescribed" |
| (vii) | any jurisdiction, custom, liability, right, title, privilege, restriction, exemption, usage, practice, procedure or other matter or thing not in existence or in force "shall not be revived or restored" |
Points from the text:
- Reference date. Clauses (i), (ii) and (v) turn on "immediately before the commencement of this Code" or "if in force at the commencement of this Code". Section 1(3) leaves the commencement of the Code to notification, and no notification is in the texts consulted, so this article gives no commencement date.
- Clause (i) keeps pending proceedings under the old Acts, to be dealt with by "the concerned courts or tribunals". Clause (v) deals with prosecutions only and is "subject to the provisions of this Code".
- Clause (vi) leaves the period for which office-holders continue to be prescribed. Section 239(2)(zn) is the matching rule-making matter: "the time up to which a person appointed to any office shall continue to hold such office under clause (vi) of sub-section (2) of section 243".
- Clause (vii) is a limit: matters "not in existence or in force" are not revived by the saving.
A person who has an old proceeding or an old instrument and wants to know how these savings apply can start with a legal consultation and bring the order and the date it was made.
Section 243(3): the General Clauses Act
"The mention of particular matters in sub-section (2) shall not be held to prejudice the general application of section 6 of the General Clauses Act, 1897 (10 of 1897) with regard to the effect of repeal of the repealed enactments or provisions of the enactments mentioned in the Schedule."
The list in sub-section (2) is therefore not exhaustive; section 6 of the General Clauses Act, 1897 continues to apply with regard to the effect of repeal. The reference is quoted as printed, and the current law should be checked for the corresponding provision. The sub-section speaks of "the Schedule", in the singular; the Schedules to the Code as printed amend other Acts or list Acts for section 29A and do not contain a list of repealed enactments. The wording is quoted as printed and not corrected.
Example (invented). Before the commencement of the Code, an individual debtor's insolvency petition was pending under one of the old Acts. Clause (i) says the proceeding continues to be governed by that Act and is heard by the concerned court as if the Act had not been repealed. A prosecution pending under an old Act continues under clause (v), subject to the Code. A person appointed to office under an old Act continues until the time prescribed (clause (vi)).
Section 244: transitional provisions
(1) Central Government in the Board's place. "Until the Board is constituted or a financial sector regulator is designated under section 195, as the case may be, the powers and functions of the Board or such designated financial sector regulator, including its power to make regulations, shall be exercised by the Central Government."
(2) Regulations on three matters. "Without prejudice to the generality of the power under sub-section (1), the Central Government may by regulations provide for the following matters":
- (a) recognition of persons, categories of professionals and persons having qualifications and experience in finance, law, management or insolvency, "as insolvency professionals and insolvency professional agencies under this Code";
- (b) recognition of persons with technological, statistical and data protection capability, "as information utilities under this Code"; and
- (c) conduct of "the corporate insolvency resolution process, insolvency resolution process, liquidation process, fresh start process and bankruptcy process under this Code".
Section 244 is a bridge. It lets the Central Government step into the Board's shoes until the Board is constituted, and it names the first tasks: recognising insolvency professionals and agencies, recognising information utilities, and regulating the processes. For the Board and its constitution, see our post on the IBBI's establishment and powers; for the designation of a financial sector regulator, see section 195 in article 118.
The section prints no date or period for the transition. When the Board was constituted and which regulators have been designated are not in the texts consulted.
The Amendment Act, 2026
The Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026) does not amend sections 243 or 244. 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 an old proceeding or a transition question?
Savings clauses depend on dates and on what was pending or in force. Our team can read the clauses against your papers in a legal consultation and note what the text does and does not cover.
Key takeaways
- Section 243(1) repeals the Presidency Towns Insolvency Act, 1909 and the Provincial Insolvency Act, 1920.
- Section 243(2) saves pending proceedings, instruments in force, acts done, principles and practice, pending prosecutions and office-holders, and prevents the revival of matters not in existence.
- Section 243(3) preserves the general application of section 6 of the General Clauses Act, 1897.
- Section 244 has the Central Government exercise the powers of the Board or a designated regulator until the Board is constituted or the regulator designated.
- The Amendment Act, 2026 does not amend these sections; check whether any related change has been notified.
Read next
- Sections 241 and 242: laying of rules before Parliament and power to remove difficulties
- Sections 245 to 254: amendments to other Acts through the First to Tenth Schedules
- Sections 225 and 226: directions by the Central Government and supersession of the Board
- The insolvency laws the Code consolidated
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.