Section 99 of IBC, 2016: Submission of Report by Resolution Professional
Section 99 sets out how a resolution professional examines a debtor's or creditor's application for an individual insolvency resolution process, obtains supporting information and recommends admission or rejection to the Adjudicating Authority.
Section 99: Provision and subsection-wise explanation
Section 99(1) - Examination and report within ten days
The resolution professional shall examine an application under Section 94 or Section 95 within ten days of appointment and submit a report to the Adjudicating Authority recommending approval or rejection.
Section 99(2) - Evidence of repayment
For a creditor-filed Section 95 application, the resolution professional may require the debtor to establish repayment of the amount claimed as unpaid through:
- Evidence of electronic transfer from the debtor's bank account;
- Evidence that a cheque issued by the debtor was encashed; or
- A signed acknowledgment by the creditor confirming receipt of dues.
Section 99(3) - Debt registered with an information utility
Where the debt underlying a creditor's application is registered with an information utility, the subsection provides that the debtor is not entitled to dispute the validity of that debt. Its operation must be understood in the context of the statutory information-utility framework and applicable judicial interpretation.
Section 99(4) - Request for further information
The resolution professional may seek additional information or explanations concerning the application from the debtor, creditor or another person considered capable of providing relevant information.
Section 99(5) - Seven-day response period
A person receiving a request under subsection (4) must provide the requested information or explanation within seven days of receiving that request.
Section 99(6) - Verification of statutory requirements
The resolution professional examines whether the application satisfies the requirements of Section 94 or Section 95, as applicable, and whether the applicant has provided information and explanations requested under subsection (4).
Section 99(7) - Recommendation
Following the examination, the resolution professional may recommend acceptance or rejection of the application in the report.
Section 99(8) - Fresh start eligibility
If the debtor qualifies for the fresh start process under Chapter II, the resolution professional must recommend that the debtor's Section 94 application be treated as an application under Section 81. This statutory provision should not be confused with a general statement that the fresh start framework has been commenced for all debtors.
Section 99(9) - Reasons must be recorded
The report must record the reasons for recommending acceptance or rejection, providing an identifiable basis for the recommendation.
Section 99(10) - Copy of report
The resolution professional must provide a copy of the report to the debtor or creditor, as the case may be.
How the Section 99 procedure works
- Filing: The debtor files under Section 94 or a creditor files under Section 95, subject to the applicable notified framework.
- Interim moratorium: Section 96 specifies the effect of filing, subject to statutory limitations and exceptions.
- Appointment: A resolution professional is appointed through the procedure in Section 97, or replaced in accordance with Section 98.
- Scrutiny: The professional examines the application, checks documents and may request evidence of repayment or other explanations.
- Report: The professional submits a reasoned recommendation within the period prescribed by Section 99(1).
- Judicial decision: The Adjudicating Authority considers the report and decides admission or rejection under Section 100. The professional's recommendation is not itself an admission order.
Important statutory timelines
| Requirement | Provision | Period |
|---|---|---|
| Examination and report following appointment | Section 99(1) | Within 10 days of appointment |
| Response to information or explanation request | Section 99(5) | Within 7 days of receiving request |
| Adjudicating Authority's decision on application | Section 100(1) | Within 14 days from submission of Section 99 report |
Role of the resolution professional and Adjudicating Authority
The resolution professional's task at the Section 99 stage is to examine the application and recommend acceptance or rejection with reasons. The professional is not the Adjudicating Authority and cannot independently admit an insolvency application or conclusively adjudicate disputed claims. Under Section 100, the Adjudicating Authority considers the report and makes the statutory admission or rejection decision.
In Dilip B. Jiwrajka v. Union of India (2023), the Supreme Court considered the constitutional framework of Sections 95 to 100, including the nature of the resolution professional's preliminary functions and the Adjudicating Authority's role. The decision should be read in full for its precise holdings.
Key legal terms
- Resolution professional: An insolvency professional appointed to perform the functions assigned under the Code, including examination and reporting under Section 99.
- Adjudicating Authority: For notified personal-guarantor proceedings connected to corporate debtors, jurisdiction is determined by Section 60 and the applicable statutory framework, ordinarily involving the National Company Law Tribunal (NCLT).
- Information utility: A regulated entity that receives, authenticates, stores and provides access to financial information under the Code.
- Default: Non-payment of a debt when the whole or any part or instalment becomes due and payable and is not paid, as defined in Section 3(12).
Official legal sources and further reading
For the operative statutory text, amendments, commencement notifications and subordinate legislation, consult the India Code official legislation portal, the IBBI Acts and legal framework, and the IBBI regulations directory. For personal guarantors, check the applicable Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019 and the relevant IBBI regulations, as amended.
Read the Insolvency and Bankruptcy Code, 2016 overview for the broader statutory framework.
Legal information updated for publication on 23 October 2026. Check official sources for subsequent amendments, notifications and case law. This article is general information, not case-specific legal advice.