Section 122: Application by Debtor under the Insolvency and Bankruptcy Code, 2016

Section 122 of the Insolvency and Bankruptcy Code, 2016 (IBC) specifies the documents and procedural requirements for a bankruptcy application made by a debtor under Chapter IV of Part III of the Code.

Current applicability: Part III provisions relating to insolvency resolution and bankruptcy have been brought into force for personal guarantors to corporate debtors. Accordingly, the presently operational bankruptcy framework under this Chapter should be read with the rules and regulations applicable to personal guarantors to corporate debtors.

Text of Section 122 - Application by debtor

122. Application by debtor.

(1) The application for bankruptcy by the debtor shall be accompanied by-

(a) the records of insolvency resolution process undertaken under Chapter III of Part III;

(b) the statement of affairs of the debtor in such form and manner as may be prescribed, on the date of the application for bankruptcy; and

(c) a copy of the order passed by the Adjudicating Authority under Chapter III of Part III permitting the debtor to apply for bankruptcy.

(2) The debtor may propose an insolvency professional as the bankruptcy trustee in the application for bankruptcy.

(3) The application referred to in sub-section (1) shall be in such form and manner and accompanied by such fee as may be prescribed.

(4) An application for bankruptcy by the debtor shall not be withdrawn without the leave of the Adjudicating Authority.

Meaning and requirements of Section 122

Section 122 deals specifically with a bankruptcy application initiated by the debtor. It follows Section 121, which sets out the circumstances in which a bankruptcy application may be made and provides the applicable filing period.

Records of the insolvency resolution process

Under Section 122(1)(a), the debtor must place the records of the insolvency resolution process conducted under Chapter III of Part III before the Adjudicating Authority. This connects the bankruptcy application with the preceding insolvency resolution proceedings.

Statement of affairs

Section 122(1)(b) requires a statement of affairs of the debtor as on the date of the bankruptcy application, in the prescribed form and manner. The statement provides the financial information required for the bankruptcy process and should be read with the applicable rules and prescribed form.

Order permitting bankruptcy application

Section 122(1)(c) requires a copy of the order passed under Chapter III of Part III that permits the debtor to apply for bankruptcy. Section 121 identifies the relevant circumstances and orders that can lead to a bankruptcy application.

Proposal of an insolvency professional

Section 122(2) permits the debtor to propose an insolvency professional to act as the bankruptcy trustee. The appointment itself is governed by the subsequent provisions of the Code, including Section 125.

Prescribed form, manner and fee

Section 122(3) makes the prescribed form, filing manner and fee part of the statutory requirements. For the currently operational regime concerning personal guarantors to corporate debtors, the Insolvency and Bankruptcy (Application to Adjudicating Authority for Bankruptcy Process for Personal Guarantors to Corporate Debtors) Rules, 2019 prescribe the application framework. A guarantor applying to initiate bankruptcy uses Form A under rule 6, subject to the requirements of the applicable rules.

Withdrawal requires permission

Section 122(4) prevents unilateral withdrawal of the debtor's bankruptcy application. Once filed, withdrawal requires leave of the Adjudicating Authority and must comply with the applicable procedural framework.

Key points for a debtor's bankruptcy application

Confirm that the statutory conditions for a bankruptcy application under Section 121 are satisfied.
Attach the records of the preceding insolvency resolution process.
Provide the prescribed statement of affairs as on the application date.
Attach the relevant order of the Adjudicating Authority permitting the bankruptcy application.
The debtor may propose an eligible insolvency professional as bankruptcy trustee.
Use the prescribed form, manner and fee applicable to the proceeding.
After filing, the application cannot be withdrawn merely at the debtor's option; permission of the Adjudicating Authority is required.

Effect after filing

Section 124 deals with the effect of an application filed under Section 122 or Section 123, including the statutory interim moratorium in relation to actions against the debtor's properties in respect of debts, subject to the terms and exceptions contained in that section.

Official legal resources

Insolvency and Bankruptcy Board of India - IBC Acts and amendments Insolvency and Bankruptcy Board of India - Rules under the IBC Insolvency and Bankruptcy Board of India - Circulars Insolvency and Bankruptcy Board of India - Forms and downloads India Code - Insolvency and Bankruptcy Code, 2016

Note: This page explains Section 122 in the context of the statutory text and the presently notified personal-guarantor framework. Procedural forms, electronic filing requirements and regulatory formats may be amended from time to time; the latest official rules, regulations, circulars and tribunal directions should therefore be checked before filing.

Updated: 30 September 2026