Section 102 of the IBC: Public Notice and Claims from Creditors
Section 102 of the Insolvency and Bankruptcy Code, 2016 establishes how creditors are publicly informed of an admitted individual insolvency resolution application and invited to submit their claims. It prescribes a seven-day period for issuing the notice and a 21-day period for creditors to submit claims.
Meaning and scope of Section 102
Section 102 falls within Chapter III of Part III of the Code, which deals with the insolvency resolution process for individuals and partnership firms. Its purpose is to notify creditors of the admission of an application and to provide a structured opportunity for creditors to register claims with the appointed resolution professional.
Adjudicating Authority means the forum empowered to decide the relevant insolvency application. For personal guarantors to corporate debtors, Section 60 provides for jurisdiction of the National Company Law Tribunal (NCLT), subject to the Code's requirements. Resolution professional means the insolvency professional appointed under Section 97, or a replacement appointed under Section 98, to carry out statutory functions in the process.
Creditor is defined in Section 3(10) of the Code and includes a person to whom a debt is owed, including financial and operational creditors. Claim, defined in Section 3(6), includes a right to payment and specified rights to remedies for breach of contract giving rise to a right to payment. The application of these definitions depends on the statutory context.
Section 102 explained: Subsections (1), (2) and (3)
Section 102(1): Issue of public notice within seven days
Within seven days of passing the admission order under Section 100, the Adjudicating Authority shall issue a public notice. The notice invites all creditors to submit claims within 21 days of the notice being issued. The 21-day period is linked to issuance of the notice, not to the date on which an individual creditor happens to read it.
Section 102(2): Information the notice must contain
The public notice must specify each of the following:
- Details of the admission order: sufficient particulars to identify the order admitting the insolvency application.
- Particulars of the resolution professional: information identifying the professional with whom creditors must register claims.
- Last date for submission: the deadline by which claims are to be lodged.
Creditors should use the contact details and submission instructions contained in the actual notice and retain proof of submission.
Section 102(3): Mandatory modes of publication
The public notice must be made available in all three prescribed ways:
- Published in at least one English newspaper and one vernacular newspaper circulating in the state where the debtor resides.
- Affixed at the premises of the Adjudicating Authority.
- Placed on the website of the Adjudicating Authority.
These are cumulative statutory publication requirements, not alternative options. Creditors should verify the official notice rather than rely on unofficial summaries.
Section 102: Important statutory timelines
| Stage | Time limit | Legal basis |
|---|---|---|
| Admission or rejection of application | Within 14 days from submission of the Section 99 report | Section 100(1) |
| Issue of public notice after admission | Within 7 days of the Section 100 order | Section 102(1) |
| Submission of creditors' claims | Within 21 days of issue of the public notice | Section 102(1) |
| Preparation of list of creditors | Within 30 days from the date of the notice | Section 104(1) |
These are the periods stated in the Code. Questions about delay, computation, procedural directions or condonation require consideration of the applicable rules and orders in the particular proceeding.
What should a creditor do after public notice?
After verifying the notice, a creditor should identify the appointed resolution professional, ascertain the exact deadline and submit a claim in the manner required by the applicable rules and notice. Section 103 addresses registration of claims by creditors, including prescribed information and manner of submission. Supporting records may include loan or guarantee agreements, statements of account, invoices, acknowledgments and evidence of payment or default, as relevant to the claim.
The resolution professional prepares a list of creditors under Section 104 on the basis of the application and claims received. This list feeds into subsequent stages, including preparation and consideration of a repayment plan. Filing a claim does not by itself guarantee admission of the amount asserted or determine the eventual recovery.
Related provisions of the Insolvency and Bankruptcy Code
- Section 94: Application by a debtor to initiate the insolvency resolution process.
- Section 95: Application by a creditor to initiate the insolvency resolution process.
- Section 96: Interim moratorium from the filing of an application under Section 94 or 95.
- Sections 97 to 99: Appointment or replacement of the resolution professional and submission of the examination report.
- Section 100: Admission or rejection of the application by the Adjudicating Authority.
- Section 101: Moratorium after admission, including restrictions applicable during that period.
- Section 103: Registration of claims by creditors.
- Section 104: Preparation of the list of creditors.
- Sections 105 to 114: Repayment plan, creditors' meeting and decision on the plan.
Application of Part III: The relevant Chapter III provisions have been brought into force for personal guarantors to corporate debtors. Their application to other classes of individuals or partnership firms must be assessed against commencement notifications and the current legal framework; the text of the Code alone does not establish universal commencement.
Frequently asked questions
Who issues the notice under Section 102?
The Adjudicating Authority issues the notice after admitting an application under Section 100. The notice identifies the resolution professional who receives claims.
Is the claims deadline 21 days from admission?
No. Section 102(1) provides 21 days from issuance of the public notice. The authority has a separate seven-day period after admission to issue that notice.
Is publication on the tribunal website enough?
No. Section 102(3) also requires publication in specified English and vernacular newspapers and affixing the notice at the Adjudicating Authority's premises.
Official legal texts and resources
- Insolvency and Bankruptcy Code, 2016 - India Code (official statutory text)
- Insolvency and Bankruptcy Board of India - Legal framework
- IBBI - Rules and related legal instruments
- IBBI - Circulars and regulatory updates
For an overview of the legislation, see The Insolvency and Bankruptcy Code, 2016.
Editorial note: This article explains the statutory framework for general information. Verify the latest notifications, rules, regulations and judicial orders before relying on a procedural deadline or filing a claim.