Section 179: Adjudicating Authority for Individuals and Partnership Firms
Section 179 of the Insolvency and Bankruptcy Code, 2016 identifies the Debt Recovery Tribunal as the Adjudicating Authority for insolvency matters of individuals and firms, subject to the special jurisdictional rule contained in Section 60 of the Code.
Text of Section 179 - Adjudicating Authority for individuals and partnership firms
(1) Subject to the provisions of section 60, the Adjudicating Authority, in relation to insolvency matters of individuals and firms shall be the Debt Recovery Tribunal having territorial jurisdiction over the place where the individual debtor actually and voluntarily resides or carries on business or personally works for gain and can entertain an application under this Code regarding such person.
(2) The Debt Recovery Tribunal shall, notwithstanding anything contained in any other law for the time being in force, have jurisdiction to entertain or dispose of-
(a) any suit or proceeding by or against the individual debtor;
(b) any claim made by or against the individual debtor;
(c) any question of priorities or any other question whether of law or facts, arising out of or in relation to insolvency and bankruptcy of the individual debtor or firm under this Code.
(3) Notwithstanding anything contained in the Limitation Act, 1963 or in any other law for the time being in force, in computing the period of limitation specified for any suit or application in the name and on behalf of a debtor for which an order of moratorium has been made under this Part, the period during which such moratorium is in place shall be excluded.
Meaning and scope of Section 179
Debt Recovery Tribunal as Adjudicating Authority
For insolvency matters of individuals and firms, Section 179(1) ordinarily vests jurisdiction in the Debt Recovery Tribunal having territorial jurisdiction over the place where the individual debtor actually and voluntarily resides, carries on business or personally works for gain.
Section 60 exception
Section 179 expressly operates subject to Section 60 of the Insolvency and Bankruptcy Code, 2016. Section 60 contains special provisions concerning the Adjudicating Authority for corporate persons and connected proceedings. Accordingly, the jurisdictional position must be determined by reading Sections 60 and 179 together where the insolvency or bankruptcy proceeding concerns a personal guarantor to a corporate debtor.
Wide jurisdiction under sub-section (2)
Sub-section (2) gives the DRT jurisdiction, notwithstanding anything contained in another law, to entertain or dispose of suits or proceedings by or against the individual debtor, claims by or against the individual debtor, and questions of priority or other questions of law or fact arising out of or relating to insolvency and bankruptcy under the Code.
Exclusion of moratorium period from limitation
Sub-section (3) creates a statutory exclusion while computing limitation for a suit or application in the name and on behalf of a debtor where a moratorium order has been made under Part III. The period during which the moratorium remains in force is excluded from the limitation calculation.
Important terms
- Adjudicating Authority: For Part III, Section 79 defines the Adjudicating Authority as the Debt Recovery Tribunal constituted under the applicable recovery-of-debts legislation, subject to the Code's specific provisions.
- Individual debtor: The person whose individual insolvency matter is before the competent authority under Part III.
- Firm: Section 79 contains the relevant definition for Part III and the Code should be read with the applicable provisions governing partnership firms.
- Moratorium: A statutory period during which specified legal actions or proceedings are stayed or restricted under the applicable Part III provision.
Current legal framework
The Insolvency and Bankruptcy Code, 2016 has been amended from time to time, including by the Insolvency and Bankruptcy Code (Amendment) Act, 2026. IBBI also updated regulations relating to insolvency resolution and bankruptcy processes for personal guarantors in June 2026. The applicable provisions, commencement notifications, rules and regulations should therefore be checked for the category of debtor and proceeding concerned.
Related provisions
Section 178 deals with priority of payment of debts. Section 180 addresses exclusion of civil court jurisdiction in matters over which the Adjudicating Authority has jurisdiction under the Code.
Page reviewed for the legal framework available as of September 2026.