IBC Section 230: Delegation

Section 230 of Insolvency and Bankruptcy Code, 2016: Delegation

Official Bare Act Text

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

The Board may, by general or special order in writing delegate to any member or officer of the Board subject to such conditions, if any, as may be specified in the order, such of its powers and functions under this Code (except the powers under section 240, as it may deem necessary.

Legal Commentary & Landmark Judgments: Section 230

Section 230 empowers the Board to delegate any of its powers and functions (except the power to make regulations) to any member or officer of the Board.

Statutory Delegation of Powers: The Board may, by general or special order in writing, delegate to any member or officer such of its powers and functions as it may deem necessary.
Exclusion of Legislative Regulation Power: Explicit statutory bar: the quasi-legislative power to make regulations under Section 240 cannot be delegated.
Conditional and Revocable: Delegations may be subject to specified conditions, restrictions, and limitations, and can be modified or revoked by the Board at any time.

Key Landmark Precedents:

Swiss Ribbons Pvt. Ltd. v. Union of India (2019) 4 SCC 17: The Supreme Court held that administrative delegation under Section 230 ensures operational efficiency while preserving the collective responsibility of the Board for regulatory legislation.
Dilip B. Jiwrajka v. Union of India (2024) 5 SCC 436: Affirmed that executive acts performed by authorized officers under lawful delegation carry the statutory authority of the Board.

Courtroom Practice & Strategic Litigation Guidance:

When challenging an administrative sanction, inspection order, or show cause notice issued by an officer of the Board, counsel should verify the specific delegation notification under Section 230 to confirm jurisdictional competency.