Section 130: Public Notice Inviting Claims from Creditors under the IBC
Section 130 governs the notices issued to creditors after the bankruptcy commencement date and the publication of a public invitation for creditors to submit claims in a bankruptcy proceeding.
Section 130 - Statutory provisions
130. (1) The Adjudicating Authority shall-
(a) send notices within ten days of the bankruptcy commencement date, to the creditors mentioned in-
(i) the statement of affairs submitted by the bankrupt under section 129; or
(ii) the application for bankruptcy submitted by the bankrupt under section 122.
(b) issue a public notice inviting claims from creditors.
(2) The public notice under clause (b) of sub-section (1) shall include the last date up to which the claims shall be submitted and such other matters and details as may be prescribed and shall be-
(a) published in leading newspapers, one in English and another in vernacular having sufficient circulation where the bankrupt resides;
(b) affixed on the premises of the Adjudicating Authority; and
(c) placed on the website of the Adjudicating Authority.
(3) The notice to the creditors referred to under clause (a) of sub-section (1) shall include such matters and details as may be prescribed.
The provision above follows the wording supplied in the original page. Verify the latest consolidated Act, rules and notifications on the official sources below before relying on it in proceedings.
Section 130(1): Individual notices and invitation to creditors
Who must receive an individual notice?
Within ten days of the bankruptcy commencement date, the Adjudicating Authority must send notices to creditors identified in either the bankrupt's statement of financial position under Section 129 or the debtor's bankruptcy application under Section 122. These are two statutory sources of creditor information, not a requirement that both documents exist in every case.
The Adjudicating Authority must also issue a public notice inviting claims. This enables creditors who may not appear in the documents to learn about the bankruptcy and submit their claims according to the notice and applicable procedural rules.
Section 130(2): How the public notice must be published
The public notice must state the last date for submission of claims and other prescribed details. Section 130(2) requires publication through all three statutory channels:
- Newspapers: One leading English-language newspaper and one leading vernacular-language newspaper with sufficient circulation where the bankrupt resides.
- Adjudicating Authority premises: The notice must be affixed at the premises of the Adjudicating Authority.
- Official website: The notice must be placed on the website of the Adjudicating Authority.
The statutory publication requirements serve transparency and help ensure creditors have a meaningful opportunity to participate in the bankruptcy process. A general online announcement alone should not be assumed to satisfy every statutory publication requirement.
Section 130(3): Contents of creditor notices and submission of claims
Individual creditor notices must contain the particulars required by the applicable rules. The public notice must specify the claim submission deadline. Creditors should check the actual notice, prescribed claim forms and supporting-document requirements rather than assume that the ten-day period for sending notices is also the period allowed to submit claims.
Important distinction: The ten-day period in Section 130(1)(a) concerns dispatch of notices by the Adjudicating Authority. The last date for creditors to submit claims must be specified in the public notice under Section 130(2); it is not automatically ten days after commencement.
Illustrative sequence
- A bankruptcy order is made under Section 126, establishing the bankruptcy commencement date in accordance with the Code.
- The Adjudicating Authority identifies creditors from the documents specified in Section 130(1)(a).
- Notices are sent within the statutory ten-day period and a public invitation to claim is issued.
- The public notice is published in the prescribed channels and states the claims deadline.
- Creditors submit claims as required, and the subsequent verification and administration process proceeds under the applicable provisions and rules.
Related IBC sections and authoritative references
- Section 122: Bankruptcy application by the debtor and supporting documents.
- Section 123: Bankruptcy application by a creditor.
- Section 126: Bankruptcy order.
- Section 129: Statement of financial position of the bankrupt.
- Section 131: Registration of claims by creditors.
- Section 132: Preparation of list of creditors.
Explore the Insolvency and Bankruptcy Code, 2016 overview. For official law and procedural updates, consult India Code, the IBBI legal framework and the Insolvency and Bankruptcy Board of India.
Frequently asked questions
Who sends the notice under Section 130?
The Adjudicating Authority is required to send the notices identified in Section 130(1)(a) and to issue the public notice inviting creditors' claims.
What is the deadline for issuing individual creditor notices?
Section 130(1)(a) specifies ten days from the bankruptcy commencement date for sending notices to the creditors identified in the listed documents.
Is the claims filing deadline always ten days?
No. The ten-day requirement relates to sending notices. The public notice must state the final date for filing claims, subject to the applicable legal framework.
Must the public notice appear in both English and a local-language newspaper?
Yes. Section 130(2)(a) calls for publication in leading newspapers, one English and one vernacular, with sufficient circulation where the bankrupt resides, as well as display at the Adjudicating Authority's premises and on its website.
Reviewed: 23 October 2026. This article provides general legal information, not case-specific legal advice. Check official commencement notifications, rules and any later amendments.