Section 103 Registering of Claims by Creditors under the Insolvency and Bankruptcy Code, 2016

Section 103 of the Insolvency and Bankruptcy Code, 2016 sets out how creditors register their claims with the resolution professional during the insolvency resolution process for individuals and partnership firms under Part III of the Code. It specifies the permitted modes for sending claim details and requires creditors to provide prescribed personal information and particulars.

Text of Section 103 - Registering of claims by creditors

Meaning and requirements of Section 103

Who registers the claim?

Section 103 applies to creditors participating in the individual or partnership firm insolvency resolution process. Following the public notice under Section 102, a creditor registers its claim with the resolution professional appointed for the proceeding.

Permitted modes for submitting a claim

Section 103(1) expressly permits details of claims to be sent by electronic communication, courier, speed post or registered letter. The provision therefore recognises both electronic and specified physical modes of transmission to the resolution professional.

Claim details and additional particulars

Registration is not limited to stating the amount claimed. Section 103(2) requires the creditor, in addition to the claim, to provide the resolution professional with personal information and such particulars as may be prescribed. The applicable rules and regulations should therefore be checked for the prescribed form, supporting material and procedural requirements relevant to the particular insolvency process.

Relationship with Section 102

Section 102 provides the public-notice mechanism. The notice must contain particulars of the resolution professional with whom claims are to be registered and the last date for submission of claims. Section 103 supplies the next procedural step by specifying how creditors register those claims with the resolution professional.

Relationship with Section 104

After claims are received, Section 104 requires the resolution professional to prepare a list of creditors on the statutory basis specified in that provision. Accordingly, registration under Section 103 forms part of the claims-verification and creditor-list process that precedes consideration of a repayment plan.

Practical statutory sequence

• An insolvency resolution application is admitted under Section 100.
• Section 101 provides for the moratorium following admission.
• Under Section 102, a public notice is issued inviting claims from creditors.
• Creditors register their claims with the resolution professional in accordance with Section 103.
• The creditor also provides personal information and prescribed particulars under Section 103(2).
• The resolution professional prepares the list of creditors under Section 104.
• The process then proceeds toward preparation and consideration of the repayment plan under the succeeding provisions of Part III.

Key points at a glance

• Claims are registered with the resolution professional, not merely with the Adjudicating Authority.
• Electronic communication is an expressly recognised mode of sending claim details.
• Courier, speed post and registered letter are also expressly recognised.
• Creditors must provide the additional personal information and particulars prescribed for the process.
• Section 103 operates with Section 102 on public notice and Section 104 on preparation of the list of creditors.

Related provisions

Section 103 should be read with Section 100 on admission or rejection of the insolvency resolution application, Section 101 on moratorium, Section 102 on public notice and claims from creditors, Section 104 on preparation of the list of creditors, and Sections 105 onward governing the repayment plan and its consideration.

This page provides statutory reference material and general legal information. The current Code, applicable rules, regulations, notifications and binding judicial decisions should be checked for a particular proceeding.