Section 91 of the Insolvency and Bankruptcy Code, 2016: Revocation of Order Admitting Application

Section 91 explains when a resolution professional may seek revocation of an order admitting a debtor into the fresh start process, the decision period for the Adjudicating Authority, and the consequences for the moratorium.

Scope: Section 91 belongs to Part III, Chapter II (Fresh Start Process) of the Insolvency and Bankruptcy Code, 2016. It concerns orders under Section 84, not corporate insolvency admission orders. The applicability and commencement of the relevant Part III provisions should be checked before relying on this procedure in a live case.

Section 91 - Statutory provision

91. Revocation of order admitting application.

(1) The resolution professional may submit an application to the Adjudicating Authority seeking revocation of its order made under section 84 on the following grounds, namely:

(a) if due to any change in the financial circumstances of the debtor, the debtor is ineligible for a fresh start process; or

(b) non-compliance by the debtor of the restrictions imposed under sub-section (3) of section 85; or

(c) if the debtor has acted in a mala fide manner and has wilfully failed to comply with the provisions of this Chapter.

(2) The Adjudicating Authority shall, within fourteen days of the receipt of the application under sub-section (1), may by order admit or reject the application.

(3) On passing of the order admitting the application referred to in sub-section (1), the moratorium and the fresh start process shall cease to have effect.

(4) A copy of the order passed by the Adjudicating Authority under this section shall be provided to the Board for the purpose of recording an entry in the register referred to in section 196.

Statutory text reproduced from the Code; consult the current official consolidated legislation for subsequent amendments and commencement notifications.

Grounds for revocation under Section 91(1)

Change in financial circumstances - clause (a)

A resolution professional may seek revocation if the debtor's financial position changes so that the eligibility requirements for a fresh start process are no longer met. Section 80 sets out the eligibility conditions, including the statutory limits on income, assets and qualifying debts.

Breach of moratorium restrictions - clause (b)

Section 85(3) imposes restrictions during the moratorium. These include restrictions on company management, disposal of assets and travel outside India without permission, together with specified disclosure obligations. Non-compliance may support a revocation application.

Bad faith and wilful non-compliance - clause (c)

Revocation may also be sought where the debtor acts mala fide (in bad faith) and wilfully fails to comply with Chapter II. The statutory ground requires attention to both the debtor's conduct and the deliberate nature of the failure.

Procedure and 14-day decision period

Under Section 91(1), the resolution professional may apply to the Adjudicating Authority to revoke an admission order originally made under Section 84. Section 91(2) provides a 14-day period from receipt of the application for an order admitting or rejecting the revocation application. The decision rests with the Adjudicating Authority; filing alone does not terminate the fresh start process.

Effect of a revocation order

Under Section 91(3), once the Adjudicating Authority allows the revocation application, the moratorium and fresh start process cease to have effect. This is distinct from the normal end of the moratorium contemplated by Section 85(4). Section 91(4) additionally requires a copy of the order to be sent to the Insolvency and Bankruptcy Board of India for the register referred to in Section 196.

Section 79: Defines terms used in Part III, including debtor, qualifying debt and resolution professional.
Section 80: Specifies eligibility for the fresh start process.
Section 84: Governs admission or rejection of a fresh start application by the Adjudicating Authority.
Section 85: Describes the moratorium and restrictions following admission.
Section 90: Permits applications for directions regarding compliance with restrictions and duties.
Section 92: Addresses the discharge order under the fresh start process.
Section 196: Sets out the powers and functions of the Insolvency and Bankruptcy Board of India.

Official legislation and reference links

For the legislation and any updates, see the IBBI consolidated Insolvency and Bankruptcy Code PDF, the India Code portal, and the IBBI legal framework. The original site also provides an overview of the Insolvency and Bankruptcy Code, 2016.

Updated: 23 October 2026. This article is general legal information, not advice for a particular proceeding.