Section 131 - Registration of Claims under the Insolvency and Bankruptcy Code 2016

Section 131 of the Insolvency and Bankruptcy Code, 2016 governs registration of claims by creditors in the bankruptcy process. It requires creditors to send details of their claims to the bankruptcy trustee within the statutory period after publication of the public notice.

Seven-day rule: Creditors must register their claims with the bankruptcy trustee within seven days of publication of the public notice by sending details of their claims in the prescribed manner.

Section 131 - Registration of claims

Section 131(1): The creditors shall register claims with the bankruptcy trustee within seven days of the publication of the public notice, by sending details of the claims to the bankruptcy trustee in such manner as may be prescribed.

Section 131(2): In addition to the details of the claim, the creditor must provide such other information, and in such manner, as may be prescribed.

Meaning and purpose of registration of claims

Registration of a claim is the process by which a creditor formally places the details of its claim before the bankruptcy trustee. The information received through this process is relevant to the identification of creditors and the subsequent administration of the bankruptcy estate.

When does the seven-day period begin?

The statutory period under Section 131 begins from the publication of the public notice. Section 130 deals with the public notice inviting claims from creditors. Accordingly, the date of publication is important for determining the seven-day period prescribed by Section 131(1).

Role of the bankruptcy trustee

The bankruptcy trustee is the person with whom creditors register their claims under Section 131. The creditor must send the details of the claim to the trustee in the manner prescribed by the applicable rules and must also provide any additional prescribed information.

Connection with Section 130

Section 130 requires a public notice inviting claims from creditors and requires that notice to state the last date up to which claims are to be submitted. Section 131 then provides the statutory mechanism for creditors to register their claims with the bankruptcy trustee.

What follows registration of claims?

After claims are received, the bankruptcy process proceeds to the preparation of the list of creditors under Section 132, followed by provisions governing the meeting of creditors, voting, administration and distribution of the bankrupt's estate, and discharge.

Related provisions

Section 130 - Public notice inviting claims Section 132 - Preparation of list of creditors Section 133 - Summoning meeting of creditors Section 134 - Conduct of meeting of creditors Section 135 - Voting rights of creditors Section 136 - Administration and distribution

Official legal resources

For the current statutory text, commencement position and applicable subordinate legislation, refer to the India Code, the Insolvency and Bankruptcy Board of India - Acts and the IBBI Updated Legal Framework.

Important: Provisions concerning bankruptcy of individuals and partnership firms operate subject to the relevant commencement notifications and applicable rules and regulations. The legal framework applicable to the particular category of debtor should be verified before relying on a procedural requirement.

This page is intended as a legal information resource. For a particular proceeding, verify the current official statutory text, commencement notifications, rules, regulations and orders.