Section 100: Admission or Rejection of Application

Section 100 of the Insolvency and Bankruptcy Code, 2016 governs the Adjudicating Authority's decision on an individual insolvency resolution application filed under Section 94 or Section 95 after considering the report submitted by the resolution professional under Section 99.

Current framework: The notified Part III insolvency resolution process operates for personal guarantors to corporate debtors. The IBBI Insolvency Resolution Process for Personal Guarantors to Corporate Debtors Regulations, 2019 were amended in 2026, and current IBBI forms and filing requirements should be checked together with the Code.

Section 100 - Statutory Provision

(1) The Adjudicating Authority shall, within fourteen days from the date of submission of the report under section 99 pass an order either admitting or rejecting the application referred to in section 94 or 95, as the case may be.

(2) Where the Adjudicating Authority admits an application under sub-section (1), it may, on the request of the resolution professional, issue instructions for the purpose of conducting negotiations between the debtor and creditors and for arriving at a repayment plan.

(3) The Adjudicating Authority shall provide a copy of the order passed under sub-section (1) along with the report of the resolution professional and the application referred to in section 94 or 95, as the case may be, to the creditors within seven days from the date of the said order.

(4) If the application referred to in section 94 or 95, as the case may be, is rejected by the Adjudicating Authority on the basis of report submitted by the resolution professional that the application was made with the intention to defraud his creditors or the resolution professional, the order under sub-section (1) shall record that the creditor is entitled to file for a bankruptcy order under Chapter IV.

Decision within Fourteen Days

The Adjudicating Authority is required to pass an order admitting or rejecting the Section 94 or Section 95 application within fourteen days from submission of the resolution professional's report under Section 99. Section 100 therefore follows the resolution professional's statutory examination and recommendation.

Effect of Admission

When the application is admitted, Section 100(2) permits the Adjudicating Authority, at the request of the resolution professional, to issue instructions for negotiations between the debtor and creditors and for arriving at a repayment plan. The insolvency resolution process then proceeds under the succeeding provisions of Part III and the applicable regulations.

Repayment Plan

A repayment plan is the proposal developed within the individual insolvency resolution process for resolving the debtor's debts in accordance with the Code. The subsequent provisions govern preparation, consideration and approval of the repayment plan, including participation of creditors and supervision by the resolution professional.

Copy of Order, Report and Application to Creditors

Section 100(3) requires the Adjudicating Authority to provide creditors with a copy of its admission or rejection order together with the resolution professional's report and the relevant Section 94 or Section 95 application. The statutory period is seven days from the date of the order.

Rejection for Intention to Defraud

Section 100(4) addresses a specific form of rejection. If the application is rejected on the basis of the resolution professional's report that it was made with an intention to defraud creditors or the resolution professional, the order must record that the creditor is entitled to file for a bankruptcy order under Chapter IV.

Section 100 and Personal Guarantors

For personal guarantors to corporate debtors, Section 100 operates with Section 60 of the Code, the applicable rules and the IBBI Insolvency Resolution Process for Personal Guarantors to Corporate Debtors Regulations, 2019. The regulations have been amended from time to time, including amendments in 2026, so current procedural requirements and prescribed forms should be verified from IBBI before filing or acting in a proceeding.

Meaning of Important Terms

Adjudicating Authority: For personal guarantors to corporate debtors, jurisdiction is governed by Section 60 of the Code together with the notified Part III framework.

Resolution professional: Section 79 defines the resolution professional for Part III as an insolvency professional appointed under that Part for conducting the fresh start process or insolvency resolution process.

Creditor: Section 3 defines a creditor as a person to whom a debt is owed and includes financial creditors, operational creditors, secured creditors, unsecured creditors and decree-holders.

Debt: Section 3 defines debt as a liability or obligation in respect of a claim which is due from any person and includes financial debt and operational debt.

Personal guarantor: Section 5 defines a personal guarantor as an individual who is the surety in a contract of guarantee to a corporate debtor.

Related Provisions

For a particular proceeding, check the official Code, current commencement notifications, applicable rules, the latest IBBI regulations, current forms and relevant judicial decisions.