Section 225 of The Insolvency and Bankruptcy Code, 2016. in hindi
- (1)Without prejudice to the foregoing provisions of this Code, the Board shall, in exercise of its powers or the performance of its functions under this Code, be bound by such directions on questions of policy as the Central Government may give in writing to it from time to time: Provided that the Board shall, as far as practicable, be given an opportunity to express its views before any direction is given under this sub-section.
- (2)The decision of the Central Government as to whether a question is one of policy or not shall be final.
Summary
- This provision makes the Insolvency and Bankruptcy Board of India legally bound by directions given by the Central Government.
- These government directions are strictly limited to questions of policy.
- All policy directions issued to the Board must be given in writing.
- The government must give the Board an opportunity to express its views before issuing a direction, as far as practicable.
- The Central Government holds the absolute final authority to decide whether a question is one of policy or not.
Practical examples
FAQ
1. Are directions given under Section 225 of the Insolvency and Bankruptcy Code, 2016 legally binding on the Board?
Yes, under Section 225 of the Insolvency and Bankruptcy Code, 2016, the Board is legally bound by any policy directions that the Central Government gives to it.
2. Does the Central Government need to consult the Board before issuing directions under Section 225 of the Code?
Yes, under Section 225 of the Code, the Board must be given an opportunity to express its views before any direction is given, as far as practicable.
3. Who decides if a direction is a policy matter under Section 225 of the Insolvency and Bankruptcy Code, 2016?
Under Section 225 of the Insolvency and Bankruptcy Code, 2016, the decision of the Central Government on whether a question is one of policy or not is final.
Test yourself
Q1.Under Section 225 of the Insolvency and Bankruptcy Code, 2016, in what specific format must the Central Government issue its policy directions to the Board?
Q2.What limitation is placed on the Central Government's power to issue binding directions under Section 225 of the Insolvency and Bankruptcy Code, 2016?
Q3.Under Section 225 of the Insolvency and Bankruptcy Code, 2016, what must happen before the government issues a policy direction to the Board?
Q4.If a dispute arises over whether a directive involves policy under Section 225 of the Insolvency and Bankruptcy Code, 2016, whose decision is final?