Section 104 of IBC, 2016: Preparation of List of Creditors
Section 104 of the Insolvency and Bankruptcy Code, 2016 (IBC) requires the resolution professional to prepare a list of creditors using information disclosed in the insolvency application and claims received following public notice. It also fixes a statutory deadline for preparing that list.
What does Section 104 provide?
The provision links the information supplied when insolvency is initiated with claims submitted by creditors after the admission order. The resulting list assists the resolution professional in identifying creditors for subsequent stages, including the preparation and consideration of a repayment plan.
Section 104(1): Basis for preparing the list
Under subsection (1), the resolution professional shall prepare a list of creditors on the basis of:
- Section 104(1)(a): Information disclosed in the application filed by the debtor under Section 94 or by the creditor under Section 95, as the case may be.
- Section 104(1)(b): Claims received by the resolution professional following the public notice contemplated by Section 102.
The resolution professional should reconcile the application disclosures and creditor submissions, examine supporting particulars under the applicable rules and regulations, and maintain a coherent record of the creditors and their claims. Section 104 itself identifies the information sources and does not prescribe a universal standalone evidentiary checklist.
Section 104(2): Thirty-day statutory time limit
Subsection (2) directs the resolution professional to prepare the list within 30 days from the date of the notice. The reference is to the public notice under Section 102, not the date of appointment of the resolution professional or the date on which the last creditor submits a claim.
Under Section 102, the Adjudicating Authority must issue public notice within seven days of the admission order under Section 100 and invite claims within 21 days of its issue. Section 104 provides a separate 30-day period, calculated from the date of that notice, for preparing the list.
How the creditor-list process works
| Stage | Relevant provision | Requirement |
|---|---|---|
| Application and disclosure | Sections 94 and 95 | Debtor or creditor initiates the process and supplies prescribed information. |
| Admission | Section 100 | Adjudicating Authority admits or rejects the application. |
| Public notice | Section 102 | Notice issued within seven days of admission; creditors invited to claim within 21 days of issue. |
| Registration of claims | Section 103 | Creditors send claims electronically or by courier, speed post or registered letter and supply required particulars. |
| Preparation of list | Section 104 | Resolution professional prepares the list within 30 days from the date of public notice. |
| Repayment plan | Section 105 and following | Debtor prepares repayment plan in consultation with the resolution professional, subject to applicable statutory procedure. |
Important terms and related provisions
Creditor and claim
Under Section 3(10), a creditor is a person to whom a debt is owed and includes financial, operational, secured and unsecured creditors and decree-holders. Section 3(6) defines claim broadly to include a right to payment and certain rights to remedies for breach of contract giving rise to payment, whether or not reduced to judgment, fixed, disputed, secured or unsecured.
Debt and debtor
Section 3(11) defines debt as a liability or obligation in respect of a claim due from any person and includes financial and operational debt. Under Section 3(12), default concerns non-payment when the whole or any part of a debt has become due and payable and is not paid.
Resolution professional
In this Part III process, the resolution professional is appointed through the statutory mechanism under Section 97 and may be replaced under Section 98. The professional examines the application under Section 99 and carries out subsequent statutory functions.
Adjudicating Authority
Section 60 provides the NCLT forum for insolvency and bankruptcy proceedings concerning personal guarantors to corporate debtors, subject to its terms. Other Part III forum provisions must be read with applicable commencement notifications and jurisdictional rules.
Practical points for creditors and debtors
- For creditors: Follow the deadline and instructions in the public notice, identify the debt accurately and submit supporting records to the designated resolution professional.
- For debtors: Ensure creditor details and liabilities disclosed in the application are complete and accurate, and respond to requests for clarification.
- For resolution professionals: Track the public-notice date, compare disclosed debts with claims received, document discrepancies and prepare the list within the Section 104(2) period.
Frequently asked questions
Who prepares the list of creditors under Section 104?
The resolution professional prepares it using the information disclosed in the insolvency application and the claims received after public notice.
What is the deadline under Section 104?
The list must be prepared within 30 days from the date of the public notice referred to in Section 102.
How long do creditors have to submit claims?
Section 102 requires the public notice to invite claims within 21 days of its issue. The notice and applicable rules should be consulted for filing requirements.
Is Section 104 the same as Section 103?
No. Section 103 concerns how creditors register their claims; Section 104 concerns preparation of the list of creditors by the resolution professional.
Official legal references
- Insolvency and Bankruptcy Code, 2016 - India Code (official Act PDF)
- Insolvency and Bankruptcy Board of India - legal framework
- IBBI - applicable rules
- IBBI - circulars and regulatory updates
Read the full Insolvency and Bankruptcy Code, 2016 for the surrounding statutory provisions. This article is general legal information, not advice for an individual proceeding. Check the latest statutory text, notifications and procedural rules.