CHAPTER II - CORPORATE INSOLVENCY RESOLUTION PROCESS

Section 13 of the Insolvency and Bankruptcy Code 2016: Moratorium and Public Announcement

Updated: 30 September 2026 | Insolvency and Bankruptcy Code, 2016

Section 13 specifies the immediate statutory consequences of admission of a corporate insolvency resolution process application. After admission under Section 7, Section 9 or Section 10, the Adjudicating Authority must declare the Section 14 moratorium, cause a public announcement calling for claims under Section 15, and appoint an interim resolution professional in accordance with Section 16.

Current position: Section 13 continues to operate as the gateway provision connecting admission of CIRP with the moratorium, public announcement and appointment of the interim resolution professional. NCLT orders in 2026 continue to apply Section 13 together with Sections 14, 15 and 16 and the IBBI CIRP Regulations.

Contents

Section 13 requirements
Declaration of moratorium
Public announcement and claims
Appointment of interim resolution professional
When public announcement is made
Relevant definitions

What Does Section 13 Require After Admission of CIRP?

After admitting an application under Section 7, Section 9 or Section 10, the Adjudicating Authority must by order: declare a moratorium for the purposes of Section 14; cause public announcement of initiation of CIRP and call for submission of claims under Section 15; and appoint an interim resolution professional in the manner laid down in Section 16.

1. MoratoriumThe protections and restrictions prescribed by Section 14 begin upon the insolvency commencement order.

2. Public announcementCIRP is publicly announced and creditors are called upon to submit their claims under Section 15 and the CIRP Regulations.

3. Interim resolution professionalAn IRP is appointed in accordance with Section 16 to perform the functions assigned by the Code.

Section 13(1)(a): Declaration of Moratorium Under Section 14

The Adjudicating Authority must declare a moratorium for the purposes specified in Section 14. Broadly, Section 14 restricts specified proceedings and enforcement actions against the corporate debtor and restricts specified dealings with its assets during the moratorium period, subject to statutory exceptions.

The moratorium is a legal consequence of admission of CIRP. Its detailed scope, exceptions and duration are governed by Section 14 and should be examined separately for any particular action or proceeding.

Section 13(1)(b): Public Announcement and Submission of Claims

The Adjudicating Authority must cause a public announcement of the initiation of CIRP and call for submission of claims under Section 15.

Section 15 prescribes the core information to be included in the public announcement, while Regulation 6 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 governs the manner of publication and related procedural requirements.

The claims process enables creditors to submit claims in the prescribed forms so that the insolvency professional can receive, collate and verify claims in accordance with the Code and CIRP Regulations.

Section 13(1)(c): Appointment of Interim Resolution Professional

Section 13 requires appointment of an interim resolution professional in the manner laid down in Section 16. The IRP assumes the statutory functions assigned by the Code, including taking steps concerning management of the corporate debtor, public announcement, receipt and collation of claims, and constitution of the Committee of Creditors where applicable.

The detailed appointment mechanism is governed by the current Section 16, which was amended in 2026. Accordingly, the applicable version of Section 16 should be consulted when determining the method of appointment in a particular CIRP.

Section 13(2): When Must the Public Announcement Be Made?

Section 13(2) requires the public announcement referred to in Section 13(1)(b) to be made immediately after the appointment of the interim resolution professional.

Meaning of "immediately": Regulation 6(1) of the CIRP Regulations provides the operational framework for public announcement. The regulatory explanation treats "immediately" as not later than three days from the date of appointment of the interim resolution professional. Current NCLT orders continue to apply this requirement.

Definitions Relevant to Section 13

Provision	Term	Meaning
Section 5(1)	Adjudicating Authority	For the purposes of Part II, the National Company Law Tribunal constituted under the Companies Act, 2013.
Section 5(12)	Insolvency commencement date	The date of admission of an application for initiating CIRP by the Adjudicating Authority under the applicable provision.
Section 5(13)	Insolvency resolution process costs	The costs specified in Section 5(13), including categories prescribed by the Board.
Section 5(15)	Interim resolution professional	An insolvency professional appointed under Section 16.
Section 5(27)	Resolution professional	An insolvency professional appointed to conduct CIRP and includes an interim resolution professional.

For other Part II definitions, see Section 5 of the IBC.

Section 13 in the CIRP Sequence

Stage	Relevant provision
Admission of CIRP application	Section 7, Section 9 or Section 10
Moratorium, public announcement and IRP appointment	Section 13
Scope and duration of moratorium	Section 14
Contents of public announcement	Section 15
Appointment and tenure of IRP	Section 16
Management after IRP appointment	Section 17
Duties of IRP	Section 18

Official Legal Resources

For the current Code and insolvency regulations, refer to the India Code portal, IBBI Legal Framework, IBBI Acts, IBBI Notifications and IBBI Regulations.

Legal information: Section 13 should be read with the current text of Sections 14, 15 and 16 and the latest IBBI CIRP Regulations because the precise consequences, publication procedure and appointment mechanism are governed by those connected provisions.