Sections 245 to 254 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.
Sections 245 to 254 each say that a named Act "shall be amended in the manner specified" in a Schedule: ten Acts, ten Schedules. This article sets out, in one table, which Act each section amends and what each Schedule changes, as printed in the IBBI consolidated text of the Code amended up to 12 August 2021. The Schedules quote other Acts as they stood when the Code was made in 2016; this article says nothing about how those Acts read today.
Section 245 to section 254, one for each of the First to Tenth Schedules, amend ten Acts: 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; and the Limited Liability Partnership Act, 2008. Most changes add the Code beside an existing reference; the Fifth Schedule is the longest. Section 255 and the Eleventh Schedule (the Companies Act, 2013) are in article 145.
How the sections and Schedules work
Each section is one sentence of the form "The shall be amended in the manner specified in the Schedule", and each Schedule opens with "(See section )" and the title "Amendment to the ". The Schedules are the operative text: the sections only call them in. The Schedules are consequential amendments. They set the other Act beside the Code, so that references, jurisdictions or priorities work with it. A reader who has to work through such a transitional position can take a legal consultation and bring the dates and the instruments.
The headings of sections 252 and 253 print "Act 1of 2004" and "Act 51of 2007" without a space; they are quoted as printed. The Acts and their numbers are quoted as the sections print them, and the reader should check the current law for the corresponding provisions of each.
The table: Act, section, Schedule and change
| Section | Schedule | Act amended (as printed) | What the Schedule changes (as printed) |
|---|---|---|---|
| 245 | First | Indian Partnership Act, 1932 (9 of 1932) | In its section 41, clause (a) is omitted |
| 246 | Second | Central Excise Act, 1944 (1 of 1944) | In one section, the words referring to the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 are replaced so that the Insolvency and Bankruptcy Code, 2016 is named beside that Act |
| 247 | Third | Income-tax Act, 1961 (43 of 1961) | In a sub-section of one section, after "for the time being in force", the words "except the provisions of the Insolvency and Bankruptcy Code, 2016" are inserted |
| 248 | Fourth | Customs Act, 1962 (52 of 1962) | In one section, the words referring to the Securitisation Act, 2002 are replaced so that the Code is named beside that Act |
| 249 | Fifth | Recovery of Debts due to Banks and Financial Institutions Act, 1993 (51 of 1993) | Seven items: long title, short title and application, Tribunals and Appellate Tribunals for Part III, jurisdiction, a new section 19A and a change to section 20(4) (detailed below) |
| 250 | Sixth | Finance Act, 1994 (32 of 1994) | In one section, the words referring to the Securitisation Act, 2002 are replaced so that the Code is named beside that Act |
| 251 | Seventh | Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002) | In section 13(9), "In the case of" becomes "Subject to the provisions of the Insolvency and Bankruptcy Code, 2016, in the case of" |
| 252 | Eighth | Sick Industrial Companies (Special Provisions) Repeal Act, 2003 (1 of 2004) | Section 4(b) is substituted: pending matters before the Appellate Authority or the Board under the 1985 Act abate on a notified date; a company may make a reference to the National Company Law Tribunal under the Code within one hundred and eighty days from the commencement of the Code; no fees are payable; and two further provisos (see below) |
| 253 | Ninth | Payment and Settlement Systems Act, 2007 (51 of 2007) | In section 23(4), (5) and (6), after the references to the Banking Regulation Act, 1949 and the Companies Act, 2013, and in section 23A(3), after the reference to the Companies Act, 2013, the words "or the Insolvency and Bankruptcy Code, 2016" are inserted |
| 254 | Tenth | Limited Liability Partnership Act, 2008 (6 of 2009) | In section 64, clause (c) is omitted |
Tax Acts are shown in general terms only. For how the tax laws treat insolvency, see our income-tax guides.
The Fifth Schedule in detail
The Fifth Schedule to the Recovery of Debts due to Banks and Financial Institutions Act, 1993 has seven items.
- Long title. After the words "financial institutions" the words ", insolvency resolution and bankruptcy of individuals and partnership firms" are inserted. The item ends "shall be inserted, namely: -."; that printing slip is quoted as printed.
- Section 1. In sub-section (1), "Due to Banks and Financial Institutions" is replaced by "and Bankruptcy"; in sub-section (4), "The provision of this Code" becomes "Save as otherwise provided, the provisions of this Code".
- Section 3. A new sub-section (1A): "The Central Government shall by notification establish such number of Debts Recovery Tribunals and its benches as it may consider necessary, to exercise the jurisdiction, powers and authority of the Adjudicating Authority conferred on such Tribunal by or under the Insolvency and Bankruptcy Code, 2016".
- Section 8. A new (1A) on Debt Recovery Appellate Tribunals "to entertain appeal against the order made by the Adjudicating Authority under Part III of the Insolvency and Bankruptcy Code, 2016". The item says "the following section shall be inserted" although what is inserted is a sub-section; quoted as printed.
- Section 17. A new (1A): the Tribunal shall exercise, "on and from the date to be appointed by the Central Government", jurisdiction, powers and authority to entertain and decide applications under Part III, and shall have circuit sittings in all district headquarters; and a new (2A) for the Appellate Tribunal on appeals "on and from the date to be appointed by the Central Government".
- New section 19A. "The application made to Tribunal for exercising the powers of the Adjudicating Authority under the Insolvency and Bankruptcy Code, 2016 shall be dealt with in the manner as provided under that Code".
- Section 20(4). After "sub-section (1)" the words "or under sub-section (1) of section 181 of the Insolvency and Bankruptcy Code, 2016" are inserted.
Items 3 to 5 refer to dates "to be appointed by the Central Government". This article gives no date for any Part of the Code and does not say for which class of debtor Part III has been brought into force. For the Tribunal route in Part III, see our post on DRT jurisdiction and appeals in individual insolvency.
The Eighth Schedule in detail
Item (b) substituted in section 4 of the Sick Industrial Companies (Special Provisions) Repeal Act, 2003 has these parts. On a notified date, any appeal, reference, inquiry or proceeding pending before the Appellate Authority or the Board under the Sick Industrial Companies (Special Provisions) Act, 1985 shall stand abated. A company whose matter abates may make a reference to the National Company Law Tribunal under the Code "within one hundred and eighty days from the commencement of the Insolvency and Bankruptcy Code, 2016", and no fees are payable for the reference. Two further provisos, shown in the text with a footnote "Ins. by the Insolvency and Bankruptcy Code (Removal of Difficulties) Order, 2017", say that a scheme sanctioned or under implementation under the 1985 Act is deemed an approved resolution plan under sub-section (1) of section 31 of the Code, and that an appeal against such a deemed plan may be preferred before the National Company Law Appellate Tribunal "within ninety days from the date of publication of this order". The commencement of the Code is by notification and is not in the texts consulted.
Example (invented). A company, Rivergate Metals Limited, had a reference pending before the Board under the 1985 Act. Under the Eighth Schedule, on the notified date the pending matter abates; Rivergate may refer to the National Company Law Tribunal under the Code within one hundred and eighty days from the commencement of the Code, without fees for that reference.
What a reader should and should not take from the Schedules
- The Schedules tell you what the 2016 Code did to the other Acts. They do not tell you how those Acts read now, and the reader should check the current law.
- The headings "(See section 245)" and so on tie each Schedule to its section.
- The Schedules do not set out the Code's own rules on any process. They matter where a creditor, a regulator or a tribunal reads the Code together with one of these Acts.
The Amendment Act, 2026
The Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026) does not amend sections 245 to 254 or the First to Tenth Schedules. 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 Code together with another Act?
When a dispute involves a recovery claim, a tax demand, a secured creditor's rights or a partnership, the Schedules show where the Code was written into the other Act. We can compare the texts with you in a legal consultation and note what is and is not in the sources.
Key takeaways
- Sections 245 to 254 call in the First to Tenth Schedules, which amend ten Acts.
- Most of the changes add the Code beside an existing reference; the Fifth Schedule (Recovery of Debts) is the longest, with seven items.
- The Eighth Schedule deals with abated matters under the 1985 Act and a reference to the Tribunal within one hundred and eighty days.
- The Schedules quote other Acts as they stood in 2016; check the current law.
- The Amendment Act, 2026 does not amend these sections or Schedules; check whether any related change has been notified.
Read next
- Sections 243 and 244: repeal of old insolvency Acts, savings and transitional provisions
- Section 255: amendments to the Companies Act, 2013 through the Eleventh Schedule
- Twelfth Schedule: Acts listed for clause (d) of section 29A
- SARFAESI Act 2002: enforcement of security interest without court intervention
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.