Section 83 of IBC 2016: Examination of Application by Resolution Professional
Section 83 of the Insolvency and Bankruptcy Code, 2016 (IBC) sets out how an appointed resolution professional examines an individual's application for a fresh start, verifies the debts and financial information, and submits a reasoned recommendation to the Adjudicating Authority.
What does Section 83 provide?
Section 83 contains seven subsections dealing with the examination period, contents of the report, requests for additional information, assessment of inability to pay, grounds for an adverse recommendation and communication of the report to the debtor.
Explanation of Section 83, subsection by subsection
Section 83(1): Examination within ten days
The resolution professional must examine the application made under Section 80 within ten days of appointment and submit a report to the Adjudicating Authority recommending either acceptance or rejection. The ten-day period runs from appointment, not from the debtor's initial filing.
Section 83(2): Identification of debts and dischargeable liabilities
The report must identify amounts in the application which, in the resolution professional's opinion, constitute qualifying debts and liabilities eligible for discharge under Section 92(3). These are legal classifications, not merely the total amount claimed by the applicant.
Section 83(3): Power to request information
To assess the application, the resolution professional may seek further information or explanations from the debtor or another person believed capable of providing relevant information. This may concern income, assets, outstanding obligations or supporting records.
Section 83(4): Seven-day response requirement
The debtor or other person receiving such a request must supply the information or explanation within seven days of receiving the request.
Section 83(5): Presumption of inability to pay
The resolution professional must presume that the debtor was unable to pay debts on the application date where both statutory conditions are satisfied:
- The application indicates inability to pay, and there is no reason to believe the information is incorrect or incomplete.
- There is reason to believe the debtor's financial circumstances have not since improved sufficiently to permit payment.
This is a conditional statutory presumption, not an automatic finding for every applicant.
Section 83(6): Grounds for rejection recommendation
The provision requires the resolution professional to reject the application in the professional's opinion if:
- The debtor does not satisfy the eligibility conditions in Section 80;
- The disclosed debts are not qualifying debts; or
- The debtor deliberately makes a false representation or omission in the application or supporting documents or information.
Read this with Section 83(1) and Section 84: the resolution professional submits a recommendation and the Adjudicating Authority decides whether to admit or reject the application.
Section 83(7): Reasons and copy of report
The resolution professional must record reasons for recommending acceptance or rejection in the report submitted to the Adjudicating Authority and must provide a copy of that report to the debtor.
Key statutory timelines
| Action | Provision | Time limit |
|---|---|---|
| Examine application and submit recommendation | Section 83(1) | Within 10 days of resolution professional's appointment |
| Respond to request for additional information | Section 83(4) | Within 7 days of receiving the request |
| Adjudicating Authority may admit or reject application | Section 84(1) | Within 14 days of submission of the report |
Related provisions and legal definitions
Section 80 - Eligibility: Prescribes the conditions for a debtor to seek a fresh start, including statutory income, asset and qualifying-debt thresholds and other disqualifications.
Section 81 - Application and interim moratorium: Specifies the contents of a fresh start application and provides for an interim moratorium on filing, subject to the relevant provisions being in force.
Section 82 - Appointment: Governs nomination or confirmation and appointment of the resolution professional.
Section 84 - Admission or rejection: Empowers the Adjudicating Authority to decide the application after receiving the professional's report.
Section 92 - Discharge order: Addresses discharge of qualifying debts and certain related liabilities under the fresh start framework.
Qualifying debt: A debt satisfying the definition in Section 79 of the IBC; excluded debts and secured debts are not treated as qualifying debts merely because the debtor lists them.
Resolution professional: The insolvency professional appointed under the Code to perform statutory examination and reporting functions.
Practical significance
Section 83 creates a structured review before an application can be admitted. It requires the professional to examine both eligibility and the character of the debts, obtain further evidence where necessary, explain the recommendation and share it with the debtor. A recommendation does not itself grant a fresh start or discharge debt.
Official legislation and regulatory sources
- Ministry of Corporate Affairs - Insolvency and Bankruptcy Code, 2016 (official PDF; historical consolidated edition)
- India Code - search the current consolidated Insolvency and Bankruptcy Code, 2016
- Insolvency and Bankruptcy Board of India - legal framework and notifications
- Ministry of Corporate Affairs - notifications and legislative updates
For the complete statute and related chapters, see The Insolvency and Bankruptcy Code, 2016.
Legal information only. Applicability depends on commencement notifications, amendments and the facts of the case. Consult the current official law and professional advice before relying on any procedure.