Section 222 of The Insolvency and Bankruptcy Code, 2016.
- (1)There shall be constituted a Fund to be called the Fund of the Insolvency and Bankruptcy Board and there shall be credited thereto—
- (a)all grants, fees and charges received by the Board under this Code;
- (b)all sums received by the Board from such other sources as may be decided upon by the Central Government;
- (c)such other funds as may be specified by the Board or prescribed by the Central Government.
- (2)The Fund shall be applied for meeting—
- (a)the salaries, allowances and other remuneration of the members, officers and other employees of the Board;
- (b)the expenses of the Board in the discharge of its functions under section 196;
- (c)the expenses on objects and for purposes authorised by this Code;
- (d)such other purposes as may be prescribed.
Summary
- It establishes a dedicated fund called the Fund of the Insolvency and Bankruptcy Board of India.
- It requires that all government grants, fee collections, and registration charges received by the Board must be credited to this fund.
- Any other funds received from sources decided by the Central Government or specified by the Board must also be deposited into it.
- It dictates that the fund must be used to pay the salaries, allowances, and remunerations of the Board's members, officers, and employees.
- It directs that the fund must cover all of the Board's general operational expenses and any other statutory purposes authorized by the law.
Practical examples
FAQ
1. What is the official name of the fund created under Section 222 of the Insolvency and Bankruptcy Code, 2016?
The fund is officially called the Fund of the Insolvency and Bankruptcy Board.
2. What financial receipts are credited to the fund under Section 222 of the Insolvency and Bankruptcy Code, 2016?
All financial grants, registration fees, administrative charges, sums from other sources approved by the Central Government, and other funds specified by the Board are credited to it.
3. How are employee salaries and allowances funded under Section 222 of the Insolvency and Bankruptcy Code, 2016?
The salaries, allowances, and other remunerations of the Board's members, officers, and other employees are paid directly out of the Board's Fund.
4. Can the Board use the fund for purposes outside of the Act under Section 222 of the Insolvency and Bankruptcy Code, 2016?
No, Section 222 of the Insolvency and Bankruptcy Code, 2016, limits the application of the fund to staff salaries, operational expenses under Section 196, and other purposes authorized by the law.
Test yourself
Q1.Which of the following financial inflows must be credited to the Board's Fund under Section 222 of the Insolvency and Bankruptcy Code, 2016?
Q2.Under Section 222 of the Insolvency and Bankruptcy Code, 2016, which of the following is an authorized application of the Board's Fund?
Q3.If the Board receives a financial grant under Section 221, where must this grant be deposited according to the rules of Section 222 of the Insolvency and Bankruptcy Code, 2016?
Q4.Besides salaries, for what other major operational activity can the Board apply its Fund under Section 222 of the Insolvency and Bankruptcy Code, 2016?