IBC Section 1: Short title, extent and commencement

Section 1 of Insolvency and Bankruptcy Code, 2016: Short title, extent and commencement

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

(1) This Act may be called the Insolvency and Bankruptcy Code, 2016.

(2) It extends to the whole of India.

(3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint:

Provided that different dates may be appointed for different provisions of this Code and any reference in any such provision to the commencement of this Code shall be construed as a reference to the commencement of that provision.

Statutory Defined Terms in this Section: (Click any term for official legal definition)

Corporate Debtor Sec 3(8) Default Sec 3(12) ₹1 Cr Threshold Sec 4

Legal Commentary & Landmark Judgments: Section 1

Section 1 of the Insolvency and Bankruptcy Code, 2016 establishes the short title, universal pan-Indian territorial extent, and phased commencement of India's unified insolvency, restructuring, and liquidation regime.

Universal Pan-Indian Scope: Extends to the whole of India; following the Jammu and Kashmir Reorganisation Act, 2019, its provisions apply uniformly across all States and Union Territories.
Phased Executive Commencement: Different provisions of the Code came into force on different dates as notified by the Central Government via Official Gazette notifications under Section 1(3).
Economic Paradigmatic Shift: Shifted Indian insolvency jurisprudence from 'debtor-in-possession' under SICA and Companies Act to 'creditor-in-control' under the oversight of an independent Resolution Professional.

Key Landmark Precedents:

Swiss Ribbons Pvt. Ltd. v. Union of India (2019) 4 SCC 17: The Supreme Court upheld the constitutional validity of the IBC in its entirety, ruling that the primary objective of the Code is reorganization and resolution of the corporate debtor as a going concern, rather than recovery or corporate death through liquidation.
Innoventive Industries Ltd. v. ICICI Bank (2018) 1 SCC 407: A 2-Judge Bench held that the IBC is an exhaustive, self-contained code consolidating the law relating to insolvency; speed is of the essence and the legislative intent is to arrest delay in reviving commercially viable entities.

Courtroom Practice & Strategic Litigation Guidance:

In all insolvency proceedings, cite Section 1 r/w Swiss Ribbons to establish that the Code's core statutory mission is value preservation and business revival as a going concern, not punitive debt enforcement or corporate liquidation.