Section 222 IBC: Board's Fund of the Insolvency and Bankruptcy Board of India

Section 222 of the Insolvency and Bankruptcy Code, 2016 establishes the Fund of the Insolvency and Bankruptcy Board and specifies both the money that may be credited to the Fund and the purposes for which it may be used.

Updated as on 30 September 2026.

Section 222 - Board's Fund

Section 222(1): There shall be constituted a Fund to be called the Fund of the Insolvency and Bankruptcy Board. The Fund is credited with:

(a) all grants, fees and charges received by the Board under the Code;

(b) all sums received by the Board from such other sources as may be decided upon by the Central Government; and

Section 222(2): The Fund is applied for meeting:

(a) salaries, allowances and other remuneration of members, officers and other employees of the Board;

(b) expenses of the Board in discharge of its functions under Section 196;

(d) such other purposes as may be prescribed.

What is the Board's Fund under Section 222?

The Board's Fund is the statutory fund of the Insolvency and Bankruptcy Board of India, commonly known as IBBI. Section 222 creates the Fund and identifies its permitted receipts and expenditure. It forms part of Chapter VII of Part IV of the Code, which deals with finance, accounts and audit of the Board.

Meaning of "Board" under the IBC

Section 3(1) of the Code defines the "Board" as the Insolvency and Bankruptcy Board of India established under Section 188(1). IBBI is the statutory regulator responsible for the functions assigned to it under the Code.

Amounts credited to the Board's Fund

Section 222(1) recognises three categories of receipts:

Grants, fees and charges under the Code: this includes grants received by the Board and regulatory fees or charges received in exercise of powers under the IBC framework.
Other sources decided by the Central Government: sums received from sources that the Central Government decides may be credited to the Fund.
Other specified or prescribed funds: other funds specified by IBBI or prescribed by the Central Government may also be credited to the Fund in accordance with law.

Section 221 grants and Section 222 Fund

Section 221 permits the Central Government, after due appropriation made by Parliament by law, to make grants to IBBI for the purposes of the Code. Section 222(1)(a) complements that provision by providing for grants received by the Board under the Code to be credited to the Board's Fund.

How the Board's Fund may be used

Section 222(2) limits application of the Fund to the statutory purposes identified by the Code. These include remuneration of IBBI members, officers and employees; expenses incurred in performing the Board's functions under Section 196; expenditure on objects and purposes authorised by the Code; and other purposes that may be prescribed.

Section 196: Powers and functions of IBBI

Section 196 is central to understanding Section 222(2)(b). It sets out the powers and functions of the Board, subject to the other provisions of the Code. These regulatory functions include registration and regulation of specified service providers, oversight of insolvency and bankruptcy processes, specification of standards and regulatory requirements, inspections and investigations, collection and maintenance of records, and other functions assigned under the Code.

Board's Fund and Insolvency and Bankruptcy Fund are different

Important distinction: The Board's Fund under Section 222 is not the same as the Insolvency and Bankruptcy Fund under Section 224. Section 222 concerns the statutory fund of IBBI for its institutional and Code-authorised expenditure, whereas Section 224 establishes a separately named Insolvency and Bankruptcy Fund under the statutory framework provided in that section.

Provision	Subject	Relevance to Section 222
Section 188	Establishment and incorporation of IBBI	Establishes the Board whose Fund is created by Section 222.
Section 196	Powers and functions of the Board	Section 222(2)(b) expressly permits the Fund to meet expenses incurred in discharge of these functions.
Section 221	Grants by Central Government	Provides for Central Government grants to the Board after Parliamentary appropriation.
Section 222	Board's Fund	Creates the Fund and specifies its receipts and permitted expenditure.
Section 223	Accounts and audit	Provides the statutory accounting and audit framework for the Board.
Section 224	Insolvency and Bankruptcy Fund	Creates a separate fund and should not be confused with the Board's Fund.

Current legal position

Section 222 continues to provide the statutory framework for the Board's Fund. The Insolvency and Bankruptcy Code (Amendment) Act, 2026 introduced extensive amendments elsewhere in the Code. For current legislation and subsequent notifications, regulations and circulars, users should consult the official IBBI legal framework and India Code.

Official legal resources

For authoritative and updated legal material, refer to the Insolvency and Bankruptcy Code, 2016 on India Code, the IBBI Acts page, and the IBBI Legal Framework for current rules, regulations, notifications, circulars and guidelines.

Key point: Section 222 both creates the Board's Fund and ring-fences its use by specifying the categories of money credited to it and the statutory purposes for which it may be applied.