Sections 63 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Three short sections close Chapter VI's procedural provisions. Section 63 bars civil courts and authorities from matters on which the tribunals have jurisdiction under the Code. Section 64 requires reasons to be recorded when a time limit is missed, allows an extension of not more than ten days, and bars injunctions against actions taken under the Tribunals' powers. Section 64A, inserted by the Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026), provides a penalty of not less than one lakh rupees and up to two crore rupees for frivolous or vexatious proceedings under Part II. Sections 63 and 64 are explained as per the IBBI consolidated text of the Code amended up to 12 August 2021; section 64A is not in that text and is explained from the Amendment Act.
No civil court or authority may entertain a suit or proceeding on a matter on which the National Company Law Tribunal or the National Company Law Appellate Tribunal has jurisdiction under the Code. If a time limit is missed, the Tribunal must record reasons, and the President or Chairperson may extend by not more than ten days; no injunction may be granted against action taken under the Tribunals' powers. The 2026 Act adds a penalty of one lakh to two crore rupees for frivolous or vexatious proceedings before the Adjudicating Authority under Part II.
Section 63: civil court not to have jurisdiction
"No civil court or authority shall have jurisdiction to entertain any suit or proceedings in respect of any matter on which National Company Law Tribunal or the National Company Law Appellate Tribunal has jurisdiction under this Code."
Three features follow from the words. The bar is on a "civil court or authority", so it is wider than courts. It applies to "any suit or proceedings". And it applies to "any matter on which" the National Company Law Tribunal or the National Company Law Appellate Tribunal "has jurisdiction under this Code". The consolidated text prints the marginal note "Civil court not to have jurisdiction." at the end of the section's text; it is a heading and not part of the section. The matters on which the Tribunal has jurisdiction are set out in section 60, explained in our article on section 60.
A person who is unsure whether a dispute with a corporate debtor belongs before the Tribunal or elsewhere can take legal dispute resolution advice before filing.
Section 64(1): reasons and a ten-day extension
"Where an application is not disposed of or an order is not passed within the period specified in this Code, the National Company Law Tribunal or the National Company Law Appellate Tribunal, as the case may be, shall record the reasons for not doing so within the period so specified; and the President of the National Company Law Tribunal or the Chairperson of the National Company Law Appellate Tribunal, as the case may be, may, after taking into account the reasons so recorded, extend the period specified in the Act but not exceeding ten days."
| Element | Words of the section |
|---|---|
| Trigger | an application is not disposed of, or an order is not passed, within the period specified in the Code |
| First duty | the Tribunal "shall record the reasons for not doing so within the period so specified" |
| Who may extend | the President of the Tribunal or the Chairperson of the Appellate Tribunal, as the case may be |
| Extent | "not exceeding ten days" |
The extension is by the President or the Chairperson, "after taking into account the reasons so recorded". The words "the period specified in the Act" appear in the section and are quoted as printed. Section 64(1) works with the many periods in the Code, such as the thirty days in section 54L; the Amendment Act, 2026 also inserts several new periods and also a requirement to record reasons for delay in specific sections (for example section 54(4), section 31(2A), section 58C(3) and section 58-I(3)). Whether section 64(1) applies on top of those is not stated in the texts consulted.
Section 64(2): no injunction
"No injunction shall be granted by any court, tribunal or authority in respect of any action taken, or to be taken, in pursuance of any power conferred on the National Company Law Tribunal or the National Company Law Appellate Tribunal under this Code." The bar covers "any court, tribunal or authority", and it covers action "taken, or to be taken", so it applies before and after the action. It does not oust the appeal route in section 61; see the article on sections 32, 61 and 62.
Section 64A: penalty for frivolous or vexatious proceedings
Section 44 of the Amendment Act, 2026 inserts a new section after section 64:
"64A. If any person has initiated a frivolous or vexatious proceeding before the Adjudicating Authority under this Part, it may impose upon such person a penalty which shall not be less than one lakh rupees, but may extend to two crore rupees."
The marginal note reads "Penalty for initiating frivolous or vexatious proceedings under Part II."
| Element | Words of the section |
|---|---|
| Who | "any person" who has initiated the proceeding |
| What | "a frivolous or vexatious proceeding before the Adjudicating Authority under this Part" |
| Penalty | "not less than one lakh rupees, but may extend to two crore rupees" |
The printing leaves the subject of "it may impose" unnamed; read with "before the Adjudicating Authority", it refers to the Adjudicating Authority, and the sentence is quoted as printed. The minimum is stated, so the penalty, once imposed, cannot be below one lakh rupees; the section says "may impose", so the imposition itself is discretionary. The section does not define "frivolous" or "vexatious". Section 65 deals separately with fraudulent or malicious initiation of proceedings, which is the subject of the next article, section 65. The site has posts on the civil penalty regime of sections 64A, 67B and 67C and on sections 64A, 240B and 240C.
Commencement
The Amendment Act, 2026 comes into force on the date or dates the Central Government notifies; the notification is not in the texts consulted, so check whether section 64A has been notified. Sections 63 and 64 are not amended by the Amendment Act, 2026. The details of the procedure for a penalty are not in the texts consulted.
Amendments and notifications made after 12 August 2021, other than the Amendment Act, 2026, are not in the texts consulted and should be checked.
Example
Bharat Tiles Pvt Ltd, a corporate debtor, is in a corporate insolvency resolution process. A shareholder files a civil suit in a city court to restrain the resolution professional from selling an asset. Section 63 bars the court from entertaining a suit on a matter on which the Tribunal has jurisdiction under the Code, and section 64(2) bars an injunction against action taken under the Tribunal's powers. A rival creditor files an application before the Adjudicating Authority that is found to be frivolous. Once section 64A applies, the Adjudicating Authority may impose a penalty of at least one lakh rupees and up to two crore rupees on that creditor. The names are invented.
Need help with jurisdiction or a frivolous application?
Whether a matter belongs before the Tribunal, whether a time limit has been missed, and whether an application invites a penalty are questions to settle before filing. Our team can help through legal dispute resolution.
Key takeaways
- Section 63 bars any civil court or authority from entertaining a suit or proceedings on a matter on which the Tribunal or the Appellate Tribunal has jurisdiction under the Code.
- Section 64(1) requires reasons for missing a period in the Code and allows an extension of not more than ten days by the President or the Chairperson.
- Section 64(2) bars any injunction by any court, tribunal or authority against action taken, or to be taken, under the Tribunals' powers.
- Section 64A, inserted by the Amendment Act, 2026, allows a penalty of not less than one lakh rupees and up to two crore rupees for a frivolous or vexatious proceeding before the Adjudicating Authority under Part II.
- Whether section 64A has been notified must be checked.
Read next
- Section 60: the Adjudicating Authority for corporate persons
- Section 65: fraudulent or malicious initiation of proceedings
- Sections 67B and 67C: penalty for contravening a moratorium or plan
- The civil penalty regime under the IBC after 2026
Disclaimer: Based on the IBBI consolidated text of the Insolvency and Bankruptcy Code, 2016 amended up to 12 August 2021 and on the Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026), which comes into force on the date or dates notified by the Central Government, as consulted on 2 October 2026. It explains the words of the statute only; commencement notifications, other amendments made after 12 August 2021, notified thresholds, the rules and IBBI regulations, and the way tribunals and courts apply these sections should be checked. This article is general information, not legal advice; check the official text before acting.