Section 131 of the Insolvency and Bankruptcy Code, 2016: Registration of Claims
Section 131 of the Insolvency and Bankruptcy Code, 2016 (IBC) requires creditors to register their claims with the bankruptcy trustee within seven days after publication of the public notice. It also requires creditors to furnish further prescribed information.
Section 131: Statutory provision
131. Registration of claims
(1) The creditors shall register claims with the bankruptcy trustee within seven days of the publication of the public notice, by sending details of the claims to the bankruptcy trustee in such manner as may be prescribed.
(2) The creditor, in addition to the details of his claims, shall provide such other information and in such manner as may be prescribed.
Source: India Code - Insolvency and Bankruptcy Code, 2016 (official PDF).
Meaning and scope of Section 131
Registration of claims means submitting the particulars of a debt or other legally recognizable claim to the appointed bankruptcy trustee for consideration in the bankruptcy process. A creditor is a person to whom a debt is owed, while the bankruptcy trustee is the insolvency professional appointed to administer the bankrupt's estate in accordance with the Code.
Sub-section (1) imposes the obligation to send claim details to the trustee within seven days of publication of the public notice. Sub-section (2) requires additional information in the manner prescribed by applicable rules. These provisions must be read with the applicable commencement notifications, rules and regulations for the category of debtor concerned.
This provision forms part of the statutory bankruptcy framework for individuals and partnership firms. It should not be confused with the separate claim-submission rules governing corporate insolvency resolution or corporate liquidation.
How creditors should register claims
- Locate the public notice. Check the publication date, identified bankruptcy trustee, submission address and stated last date.
- Identify the claim. Record the creditor's identity, nature of debt, amount due, relevant dates and any security or supporting rights.
- Gather evidence. Relevant documents may include agreements, account statements, invoices, judgments, guarantees and proof of payments or outstanding balances.
- Submit to the bankruptcy trustee. Follow the procedure and any prescribed form applicable to the particular bankruptcy process; retain acknowledgement or proof of delivery.
- Respond to further requests. Supply any additional particulars or clarification properly sought under applicable law.
These are practical preparation steps, not a substitute for a prescribed statutory form. The precise submission requirements depend on the rules applicable to the proceeding.
What if the seven-day deadline is missed?
Section 131 itself does not set out a general automatic extension or a universal late-filing procedure. A creditor who misses the deadline should promptly seek case-specific advice and approach the bankruptcy trustee or appropriate adjudicating forum as permitted by applicable law. Do not assume that extensions available in corporate insolvency proceedings apply to this provision.
Frequently asked questions
How many days are available to register a claim under Section 131?
Seven days from publication of the public notice, subject to the applicable legal framework.
Who receives the creditor's claim?
The bankruptcy trustee appointed for the relevant bankruptcy proceeding.
Is providing only the amount of debt sufficient?
Not necessarily. Section 131(2) expressly contemplates additional prescribed information beyond the basic claim details.
Does Section 131 govern corporate insolvency claims?
No. Corporate insolvency resolution and corporate liquidation have their own claim submission frameworks. Section 131 is located in the Code's individual and partnership bankruptcy provisions.
Official legal references
- India Code - Insolvency and Bankruptcy Code, 2016
- Insolvency and Bankruptcy Board of India - Legal framework and regulations
- Ministry of Corporate Affairs
Legal information only. Statutory applicability, notified commencement, procedural rules and subsequent amendments should be verified for the relevant proceeding before acting.