Section 15 IBC: Public Announcement of Corporate Insolvency Resolution Process
Section 15 specifies the information that must appear in the public announcement when a corporate insolvency resolution process (CIRP) begins. The announcement informs creditors of the insolvency proceedings and how to submit their claims.
1. What Section 15 requires
Under Section 15(1), the public announcement made pursuant to the order referred to in Section 13 of the Insolvency and Bankruptcy Code, 2016 must contain the following particulars:
- Corporate debtor: the name and address of the corporate debtor undergoing CIRP.
- Registration authority: the name of the authority with which the corporate debtor is incorporated or registered.
- Claims deadline: the last date for submission of claims by creditors.
- Interim resolution professional: the details of the IRP who takes over management of the corporate debtor and receives claims.
- False claims: the penalties applicable to false or misleading claims.
- Expected closing date: the date on which the CIRP is expected to close, identified in Section 15 as the 180th day from admission under Section 7, 9 or 10. This is an initial statutory reference point and is subject to the applicable extension and overall-period provisions of Section 12.
Section 15(2) provides that the public announcement must be made in the manner specified by the Insolvency and Bankruptcy Board of India (IBBI).
2. When must the public announcement be made?
Under Section 13(2), the announcement is to be made immediately after appointment of the IRP. Regulation 6(1) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 explains that, for this purpose, immediately means not later than three days from the date of appointment of the IRP.
These rules concern the announcement after commencement of CIRP; the announcement is not a substitute for the admission order passed by the National Company Law Tribunal (NCLT).
3. Publication, Form A and the claims process
The IRP publishes the announcement in Form A of the Schedule to the CIRP Regulations, subject to the version of the regulations applicable to the proceeding. Regulation 6 provides for publication in newspapers with relevant circulation and on the corporate debtor's website, if any, and the designated IBBI website, as prescribed.
The announcement enables financial creditors, operational creditors, workmen, employees and other eligible claimants to identify the appropriate professional and submit their claims using the applicable prescribed forms. Claims are then collated and verified under the Code and the CIRP Regulations.
| Issue | Applicable provision | Practical effect |
|---|---|---|
| Admission and announcement | Section 13 | NCLT orders announcement and appoints the IRP. |
| Mandatory announcement details | Section 15 | Identifies debtor, IRP, claims deadline and other particulars. |
| Form and publication | Regulation 6, CIRP Regulations | Prescribes Form A and publication requirements. |
| Claims and verification | Sections 18 and relevant CIRP Regulations | IRP receives, collates and verifies creditor claims. |
| CIRP duration | Section 12 | Ordinary 180-day period, possible extension and statutory overall framework. |
4. Last date for filing claims
The last date stated in the public announcement must comply with the CIRP Regulations. The framework ordinarily requires the public announcement to specify a claims deadline calculated from the appointment of the IRP. Late claims may be governed by the applicable amended regulations and the stage of the CIRP; a creditor should check the current regulatory text and the specific announcement rather than assume a late filing will always be accepted.
5. Important legal definitions
Corporate insolvency resolution process (CIRP)
A statutory process for resolving the insolvency of a corporate debtor under Part II of the IBC, supervised by the NCLT and administered through an insolvency professional.
Corporate debtor
Under Section 3(8), a corporate debtor is a corporate person who owes a debt to any person.
Insolvency commencement date
Under Section 5(12), the insolvency commencement date is the date of admission of an application for initiating CIRP by the Adjudicating Authority under Sections 7, 9 or 10, as applicable.
Interim resolution professional (IRP)
An insolvency professional appointed under Section 16 who initially performs functions including management of the corporate debtor, making the public announcement and receiving claims, subject to the Code.
6. Frequently asked questions
Who issues the CIRP public announcement?
The IRP issues it after appointment, in accordance with Section 13 and Regulation 6.
Does the announcement start the moratorium?
No. The moratorium is declared by the NCLT under Sections 13 and 14 and takes effect under the terms of the order and the Code.
Is the 180th day always the final CIRP deadline?
No. Section 12 provides for extensions and the overall statutory period. The effect of litigation delays and exceptional circumstances must be considered under applicable law and judicial decisions.
7. Official legislation and resources
- IBBI legal framework: IBC, regulations and amendments
- India Code: central legislation, including the IBC
- IBBI: insolvency notices and regulatory information
- National Company Law Tribunal (NCLT)
- LawDadi guide to the Insolvency and Bankruptcy Code, 2016
This article explains the statutory framework for general information. Check the latest consolidated Code, regulations, notifications and applicable tribunal orders before relying on a deadline in an individual case.