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Bankruptcy · Unit 1

Foundations of the Code

Unit 1 of Bankruptcy Laws (syllabus: Module I — the historical background and the constitutional allocation of insolvency and bankruptcy; the preliminary provisions of the Code — short title, extent, commencement, application and definitions; and the miscellaneous provisions — the Insolvency and Bankruptcy Fund, the powers of the Central Government, the bar of jurisdiction, protection of action taken in good faith, appeal and revision, the Code’s overriding effect, and limitation). Below: what the unit covers, the provisions it turns on, and the cases an examiner expects you to name.

What this unit covers

  • Where does Parliament get the power to enact an insolvency code?
  • What does the long title tell you about the purpose of the Code?
  • What is the ladder of claim, debt and default, and why does it matter?
  • Which dictionary applies to which Part?
  • What is the effect of section 238?
  • What is the difference between a rule and a regulation under the Code?

Treat that list as a self-test: recite each topic's rule from memory before you open its cases.

Provisions

Leading cases

  • No judgment is available for this subject; the nearest authority is entry 9 of List III read with Art. 254
  • No judgment is available for this subject; the nearest authority is the long title of the Code itself
  • No judgment is available for this subject; the nearest authority is the definitions in s. 3(6)
  • No judgment is available for this subject; the nearest authority is the structure of ss. 3
  • No judgment is available for this subject; the nearest authority is the terms of s. 238 itself
  • No judgment is available for this subject; the nearest authority is ss. 239

Exam questions on this unit