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Section 242 of The Insolvency and Bankruptcy Code, 2016.

(1)If any difficulty arises in giving effect to the provisions of this Code, the Central Government may, by order, published in the Official Gazette, make such provisions not inconsistent with the provisions of this Code as may appear to be necessary for removing the difficulty: Provided that no order shall be made under this section after the expiry of five years from the commencement of this Code.
(2)Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament

Summary

The Central Government has the power to pass orders to remove any practical difficulties that arise when implementing the provisions of this Code.
Any order passed to remove a difficulty must be published in the Official Gazette, which is the official government public journal.
All difficulty-removal orders must be consistent with the existing provisions of the Code.
The power to remove difficulties under the original Code expired five years after the commencement of the Code.
Every difficulty-removal order made under this section must be presented to each House of Parliament as soon as possible after it is issued.

Practical examples

1In late 2016, a tribunal faced a conflict regarding how to process physical applications from rural banks due to an oversight in the original Code. The Central Government, on December 20, 2016, issued a "Removal of Difficulties" order in the Official Gazette to allow digital submissions. This order was valid because it was issued within the five-year limit from the Code's start and was consistent with the Code.

2In October 2026, following the major amendments to the Code, a corporate resolution professional, Amit, noted that a transition timeline for small businesses was unworkable. The Central Government issued an order to clarify the timeline. This order was valid because the 2026 Amendment Act granted a fresh five-year period starting from its commencement to resolve issues arising from those specific amendments.

FAQ

1. Who has the authority to remove implementation difficulties under Section 242 of the Insolvency and Bankruptcy Code, 2016?

Under Section 242 of the Insolvency and Bankruptcy Code, 2016, the Central Government has the sole authority to issue orders in the Official Gazette to remove any difficulties that arise in giving effect to the provisions of the Code.

2. Can a difficulty-removal order override the main text of the law under Section 242 of the Insolvency and Bankruptcy Code, 2016?

Under Section 242 of the Insolvency and Bankruptcy Code, 2016, any order made to remove a difficulty must be consistent with the provisions of the Code. It cannot contain any directions or rules that contradict or violate the statutory text of the Code.

Test yourself

Q1.Under Section 242 of the Insolvency and Bankruptcy Code, 2016, what is the primary limitation placed on the Central Government when issuing a difficulty-removal order?

Q2.According to Section 242 of the 2016 Insolvency and Bankruptcy Code, what is the expiry period for making a difficulty-removal order concerning the provisions of the Insolvency and Bankruptcy Code (Amendment) Act, 2026?

Q3.Under Section 242 of the Insolvency and Bankruptcy Act of 2016, what must the Central Government do immediately after making a difficulty-removal order?

Q4.Based on Section 242 of the Insolvency and Bankruptcy Code, 2016, where must a difficulty-removal order be officially published to have legal effect?

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