CHAPTER II - CORPORATE INSOLVENCY RESOLUTION PROCESS
Section 15 of the Insolvency and Bankruptcy Code 2016: Public Announcement of CIRP
Section 15 prescribes the information that must appear in the public announcement of a corporate insolvency resolution process and requires the announcement to be made in the manner specified by the Insolvency and Bankruptcy Board of India. It operates with Sections 13 and 16 and the CIRP Regulations governing publication and submission of claims.
Purpose of the Section 15 Public Announcement
After admission of a CIRP application, Section 13 requires the Adjudicating Authority to cause a public announcement of the initiation of CIRP and call for submission of claims. Section 15 identifies the statutory information that the announcement must contain.
The announcement gives creditors and other stakeholders formal notice that CIRP has commenced, identifies the corporate debtor and interim resolution professional, specifies the claim deadline, warns against false or misleading claims, and states the scheduled closing date of CIRP.
Section 15(1): Information Required in the Public Announcement
The public announcement made under the order referred to in Section 13 must contain the information specified in Section 15(1).
Section 15(2): Manner of Public Announcement
Section 15(2) provides that the public announcement must be made in the manner specified by the Board. The detailed procedure is contained principally in Regulation 6 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.
The regulatory framework addresses the timing and publication of the announcement and its availability through prescribed channels. Because the CIRP Regulations are amended periodically, the current version of Regulation 6 and the applicable public announcement form should be checked when a live CIRP is involved.
Submission of Claims After Public Announcement
The public announcement calls upon creditors to submit their claims to the interim resolution professional. The Code and CIRP Regulations prescribe the process for submission, receipt, collation and verification of claims and provide forms for different categories of creditors.
The claim deadline stated in the public announcement is therefore an important procedural date. The treatment of claims filed after the initial announcement deadline is governed by the current CIRP Regulations and applicable judicial decisions and should be checked against the rules in force for the particular proceeding.
Section 15(1)(f): 180-Day CIRP Closing Date
The announcement must state the date on which CIRP is expected to close, namely the 180th day from admission of the application under Section 7, Section 9 or Section 10. This reflects the ordinary CIRP period prescribed by Section 12.
The date stated in the announcement does not eliminate the statutory mechanisms affecting the actual duration of CIRP. Section 12 governs extensions and the overall time-limit framework, and judicial orders may affect computation in a particular case.
Definitions Relevant to Section 15
| Provision | Term | Meaning |
|---|---|---|
| Section 3(8) | Corporate debtor | A corporate person who owes a debt to any person. |
| 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(14) | Insolvency resolution process period | The period beginning from the insolvency commencement date and continuing for the period prescribed by the Code, subject to its extension and time-limit provisions. |
| 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.
How Section 15 Fits Into the CIRP Process
| Stage | Provision |
|---|---|
| Admission of CIRP application | Section 7, Section 9 or Section 10 |
| Moratorium, public announcement and IRP appointment | Section 13 |
| Moratorium | Section 14 |
| Contents and manner 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, CIRP Regulations and official insolvency material, refer to the India Code portal, IBBI Legal Framework, IBBI Acts, IBBI Regulations, IBBI Notifications and IBBI Public Announcements.