Section 3. Definitions
In this Code, unless the context otherwise requires, -
(1)“Board” means the Insolvency and Bankruptcy Board of India established under sub-section (1) of
section 188;
(2)“bench” means a bench of the Adjudicating Authority;
(3)“bye-laws” mean the bye-laws made by the insolvency professional agency under
section 205;
(4)“charge” means an interest or lien created on the property or assets of any person or any of its undertakings or both, as the case may be, as security and includes a mortgage;
(5)“Chairperson” means the Chairperson of the Board;
(a)a right to payment, whether or not such right is reduced to judgment, fixed, disputed, undisputed, legal, equitable, secured, or unsecured;
(b)right to remedy for breach of contract under any law for the time being in force, if such breach gives rise to a right to payment, whether or not such right is reduced to judgment, fixed, matured, unmatured, disputed, undisputed, secured or unsecured;
(7)“corporate person” means a company as defined in clause (20) of
section 2 of the Companies Act, 2013 (18 of 2013), a limited liability partnership, as defined in clause (n) of sub-section (1) of
section 2 of the Limited Liability
(18)“financial sector regulator” means an authority or body constituted under any law for the time being in force to regulate services or transactions of financial sector and includes the Reserve Bank of India, the Securities and Exchange Board of India, the Insurance Regulatory and Development Authority of India, the Pension Fund Regulatory Authority and such other regulatory authorities as may be notified by the Central Government;
(19)“insolvency professional” means a person enrolled under
section 206 with an insolvency professional agency as its member and registered with the Board as an insolvency professional under
section 207;
(20)“insolvency professional agency” means any person registered with the Board under
section 201 as an insolvency professional agency;
(21)“information utility” means a person who is registered with the Board as an information utility under
section 210;
(22)“notification” means a notification published in the Official Gazette, and the terms “notified” and “notify” shall be construed accordingly;
(b)a Hindu Undivided Family;
(f)a limited liability partnership; and
(g)any other entity established under a statute, and includes a person resident outside India;
(24)“person resident in India” shall have the meaning as assigned to such term in clause (v) of
section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999);
(25)“person resident outside India” means a person other than a person resident in India;
(26)“prescribed” means prescribed by rules made by the Central Government;
(27)“property” includes money, goods, actionable claims, land and every description of property situated in India or outside India and every description of interest including present or future or vested or contingent interest arising out of, or incidental to, property; [
(27A)“registered valuer” shall have the same meaning as assigned to it under Chapter XVII of the Companies Act, 2013] 5;
(28)“regulations” means the regulations made by the Board under this Code;
(29)“Schedule” means the Schedule annexed to this Code;
(30)“secured creditor” means a creditor in favour of whom security interest is created;
(31)“security interest” means right, title or interest or a claim to property, created in favour of, or provided for a secured creditor by a transaction which secures payment or performance of an obligation and includes mortgage, charge, hypothecation, assignment and encumbrance or any other agreement or arrangement securing payment or performance of any obligation of any person: Provided that security interest shall not include a performance guarantee; [Explanation.—For the removal of doubts, it is hereby clarified that the security interest shall exist only if it creates a right, title or interest or a claim to a property pursuant to an agreement or arrangement, by the act of two or more parties, and shall not include a security interest created merely by operation of any law for the time being in force] 6; [
(31A)“service provider” means an insolvency professional, insolvency professional agency, information utility, registered valuer and any person falling within the category of persons notified by the Central Government, for rendering services in relation to insolvency and bankruptcy processes under this Code and is registered with the Board] 7;
(32)“specified” means specified by regulations made by the Board under this Code and the term “specify” shall be construed accordingly;
(33)“transaction” includes a agreement or arrangement in writing for the transfer of assets, or funds, goods or services, from or to the corporate debtor;
(34)“transfer” includes sale, purchase, exchange, mortgage, pledge, gift, loan or any other form of transfer of right, title, possession or lien;
(35)“transfer of property” means transfer of any property and includes a transfer of any interest in the property and creation of any charge upon such property;
(36)“workman” shall have the same meaning as assigned to it in clause (s) of
section 2 of the Industrial Disputes Act, 1947(14 of 1947);
(37)words and expressions used but not defined in this Code but defined in the Indian Contract Act, 1872(9 of 1872), the Indian Partnership Act, 1932 (9 of 1932), the Securities Contact (Regulation) Act, 1956 (42 of 1956), the Securities Exchange Board of India Act, 1992 (15 of 1992), the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (51 of 1993), the Limited Liability Partnership Act, 2008 (6 of 2009) and the Companies Act, 2013 (18 of 2013), shall have the meanings respectively assigned to them in those Acts.
