Section 100 of the IBC, 2016: Admission or Rejection of Insolvency Application
Section 100 of the Insolvency and Bankruptcy Code, 2016 (IBC) sets out how the Adjudicating Authority decides whether to admit or reject an insolvency resolution application made by a debtor under Section 94 or a creditor under Section 95, following the resolution professional's report under Section 99.
Section 100: Admission or rejection of application
Section 100 contains four subsections. The following explanations retain the substance of each provision while clarifying its practical effect.
Section 100(1): Order within 14 days
The Adjudicating Authority shall, within fourteen days from submission of the Section 99 report, pass an order admitting or rejecting the application filed under Section 94 or Section 95, as applicable.
Meaning: The resolution professional recommends an outcome, but the Adjudicating Authority makes the judicial decision. The 14-day period runs from submission of the report, not from the initial filing date.
Section 100(2): Directions for repayment-plan negotiations
If the application is admitted, the Adjudicating Authority may, on the resolution professional's request, issue instructions to facilitate negotiations between the debtor and creditors with a view to arriving at a repayment plan.
Meaning: Admission may open a structured path toward an agreed repayment arrangement. The power to issue directions is discretionary; admission itself does not mean that a repayment plan has been approved.
Section 100(3): Order and documents to creditors within 7 days
The Adjudicating Authority shall provide creditors, within seven days of the order, a copy of the admission or rejection order together with the resolution professional's report and the relevant Section 94 or 95 application.
Meaning: Creditors receive the core documents needed to understand the decision and take any next steps permitted by law.
Section 100(4): Fraudulent application and possible bankruptcy filing
If the application is rejected on the basis of the resolution professional's report that it was made with intent to defraud creditors or the resolution professional, the rejection order shall record that the creditor is entitled to file for a bankruptcy order under Chapter IV.
Meaning: This consequence is tied to the specified finding of fraudulent intent; it does not automatically follow every rejection. A subsequent bankruptcy application remains subject to the relevant statutory requirements.
How Section 100 works: Process and timelines
| Stage | Applicable provision | Requirement |
|---|---|---|
| Insolvency application | Sections 94 or 95 | Debtor or creditor submits an application, as permitted by the Code and applicable rules. |
| Appointment of resolution professional | Section 97 | Adjudicating Authority appoints a resolution professional following the statutory IBBI process. |
| Examination and report | Section 99(1) | Resolution professional examines the application within 10 days of appointment and recommends acceptance or rejection. |
| Admission or rejection order | Section 100(1) | Adjudicating Authority passes an order within 14 days from submission of the Section 99 report. |
| Documents supplied to creditors | Section 100(3) | Order, report and application are supplied within 7 days from the order. |
| Moratorium after admission | Section 101 | Statutory moratorium operates upon admission, subject to the terms and exceptions of Section 101. |
These are statutory timelines. Actual case duration can vary due to procedural requirements and judicial proceedings.
Legal effect of admission and rejection
When the application is admitted
Admission under Section 100 triggers the moratorium under Section 101. The Adjudicating Authority may facilitate negotiations toward a repayment plan under Section 100(2). The subsequent process includes public notice and creditor claims under Section 102, preparation of the list of creditors under Section 104, and the repayment-plan framework under Sections 105 onward, where applicable.
When the application is rejected
The application does not proceed into the admitted insolvency resolution process on the basis of that filing. The interim moratorium under Section 96, which operates from filing, ceases when the application is admitted or rejected according to the statutory scheme. Where rejection is based on the fraudulent-intent ground described in Section 100(4), the order must record the creditor's entitlement to seek a bankruptcy order under Chapter IV.
Interim moratorium versus post-admission moratorium
Section 96 provides interim protection upon filing a Section 94 or 95 application, whereas Section 101 governs the moratorium that follows admission. They are distinct legal stages with their own statutory wording and exceptions.
Definitions and related sections
- Section 79: Definitions for Part III, including terms relevant to debtor, creditor, debt and repayment plan, subject to their statutory context.
- Section 94: Application by a debtor to initiate an insolvency resolution process.
- Section 95: Application by a creditor to initiate an insolvency resolution process.
- Section 96: Interim moratorium from the date of filing.
- Section 97: Appointment of a resolution professional.
- Section 98: Replacement of a resolution professional.
- Section 99: Examination of the application and submission of the resolution professional's report.
- Section 101: Moratorium upon admission of the application.
- Sections 102-105: Public notice, claims, list of creditors and repayment plan.
- Section 121: Application for bankruptcy in the circumstances provided by Chapter IV.
- Section 60: Adjudicating Authority for personal guarantors to corporate debtors, read with the applicable jurisdictional provisions.
Frequently asked questions
Does the resolution professional admit the insolvency application?
No. Under Section 99, the resolution professional submits a reasoned recommendation. Under Section 100, the Adjudicating Authority passes the order admitting or rejecting the application.
Does admission automatically approve a repayment plan?
No. Admission begins the next statutory stage. Repayment plans are dealt with separately under Sections 105 to 119, including creditor consideration and an order of the Adjudicating Authority where required.
Can a creditor immediately seek bankruptcy after any rejection?
Section 100(4) specifically addresses rejection on the basis of a report that the application was made with intent to defraud creditors or the resolution professional. Other bankruptcy routes, if available, depend on Chapter IV and the facts of the case.
Official legal text and regulatory resources
- India Code - Insolvency and Bankruptcy Code, 2016 (Act 31 of 2016)
- India Code - Full text of the Insolvency and Bankruptcy Code, 2016 (PDF)
- IBBI - Legal framework, current regulations and amendments
- IBBI - Official forms and downloads
For current filings involving personal guarantors to corporate debtors, consult the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019 and the IBBI (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019, as amended. The IBBI legal framework lists updates including amendments made in 2026.
Explore the Code: The Insolvency and Bankruptcy Code, 2016 - Overview and sections.
Editorial note: This article is general legal information, not case-specific legal advice. Consult the operative statute, notifications, rules, regulations and orders for any particular matter.