Section 122: Application by Debtor for Bankruptcy under the IBC, 2016
Section 122 specifies the supporting documents, option to propose a bankruptcy trustee, prescribed filing requirements and restriction on withdrawal when a debtor applies for bankruptcy under the Insolvency and Bankruptcy Code, 2016 (IBC).
Section 122 - Application by debtor: statutory provisions
122. (1) The application for bankruptcy by the debtor shall be accompanied by-
(a) the records of insolvency resolution process undertaken under Chapter III of Part III;
(b) the statement of affairs of the debtor in such form and manner as may be prescribed, on the date of the application for bankruptcy; and
(c) a copy of the order passed by the Adjudicating Authority under Chapter III of Part III permitting the debtor to apply for bankruptcy.
(2) The debtor may propose an insolvency professional as the bankruptcy trustee in the application for bankruptcy.
(3) The application referred to in sub-section (1) shall be in such form and manner and accompanied by such fee as may be prescribed.
(4) An application for bankruptcy by the debtor shall not be withdrawn without the leave of the Adjudicating Authority.
The statutory wording above is reproduced from the supplied page. Consult the current official consolidated legislation and applicable notifications for legal use.
What must accompany a debtor's bankruptcy application?
Section 122(1)(a): records of the earlier insolvency resolution process
The application must include records of the insolvency resolution process under Chapter III of Part III. These documents establish the preceding proceedings and help the Adjudicating Authority understand why a bankruptcy application is being made. Bankruptcy under Section 121 is linked to specified earlier orders rather than being an unrestricted first step.
Section 122(1)(b): statement of affairs
The debtor must provide a statement of affairs as at the date of the bankruptcy application, in the prescribed form and manner. It is intended to present the debtor's financial position, including relevant assets, liabilities and creditor information, as required by the applicable rules and forms. Accuracy and completeness are important because the statement informs the administration of the bankruptcy process.
Section 122(1)(c): qualifying order of the Adjudicating Authority
A copy of the order under Chapter III of Part III permitting the bankruptcy application must accompany the filing. Section 121 identifies the relevant orders under Section 100(4), Section 115(2) and Section 118(3). The particular order relied upon should be identified and enclosed.
Section 122(2): proposing a bankruptcy trustee
The debtor may propose an insolvency professional as the bankruptcy trustee in the application. This is an option, not an automatic appointment. Appointment and replacement are governed by the applicable statutory procedure, including the provisions dealing with the bankruptcy trustee and the role of the Insolvency and Bankruptcy Board of India (IBBI).
Section 122(3) and (4): form, fee and withdrawal
Prescribed form and fee: Section 122(3) requires the application to comply with the prescribed form, manner and fee. Applicants should verify the currently applicable rules, forms, supporting schedules and filing requirements before submission.
Withdrawal requires permission: Under Section 122(4), a debtor cannot unilaterally withdraw a bankruptcy application. Withdrawal requires leave of the Adjudicating Authority. The provision does not guarantee that permission will be granted.
How Section 121 and Section 122 work together
- Check the qualifying event: Identify the order under Section 100(4), 115(2) or 118(3) that permits an application under Section 121.
- Check the time limit: Section 121(2) provides a three-month period from the relevant order for filing the bankruptcy application.
- Prepare the Section 122 documents: Include the Chapter III process records, prescribed statement of affairs and the relevant order.
- Follow the filing procedure: Use the prescribed form and fee; a proposed insolvency professional may be named.
- Await judicial consideration: Filing an application does not itself amount to a bankruptcy order. Subsequent steps are governed by Chapter IV.
Related IBC provisions and official references
- Section 121: Who may apply for bankruptcy, the qualifying orders and the three-month period.
- Section 123: Application for bankruptcy by a creditor.
- Section 124: Effect of an application for bankruptcy.
- Sections 125-126: Appointment of bankruptcy trustee and bankruptcy order.
- Sections 100, 115 and 118: Orders that can form the statutory basis for a bankruptcy application.
Read the Insolvency and Bankruptcy Code, 2016 - LawDadi overview. For authoritative legislation and notifications, consult India Code (Government of India), the IBBI legal framework and IBBI official website.
Frequently asked questions
Can a debtor apply directly for bankruptcy under Section 122?
Section 122 prescribes what accompanies a debtor's application. The circumstances allowing an application are specified in Section 121, including qualifying orders from the preceding insolvency resolution process.
Is naming a bankruptcy trustee compulsory?
No. Section 122(2) states that the debtor may propose an insolvency professional. The proposal does not itself appoint that professional.
Can the debtor withdraw the application after filing?
Only with the leave of the Adjudicating Authority, as required by Section 122(4).
Is the bankruptcy application the same as a bankruptcy order?
No. An application begins the relevant judicial process; the making of a bankruptcy order is governed by separate provisions of Chapter IV.
Last reviewed: 23 October 2026. This article is general legal information and is not a substitute for advice based on the facts and applicable commencement notifications.