Section 183: Expeditious Disposal of Applications under the Insolvency and Bankruptcy Code, 2016
Section 183 of the Insolvency and Bankruptcy Code, 2016 forms part of Part III, Chapter VI, dealing with the adjudicating authority for individuals and partnership firms. It reinforces the time-bound character of proceedings before the Debt Recovery Tribunal and the Debt Recovery Appellate Tribunal.
Text of Section 183 - Expeditious disposal of applications
Where an application is not disposed of or order is not passed within the period specified in this Code, the Debt Recovery Tribunal or the Debt Recovery Appellate Tribunal, as the case may be, shall record the reasons for not doing so within the period so specified; and the Chairperson of the Debt Recovery Appellate Tribunal, after taking into account the reasons so recorded, extend the period specified in this Code, but not exceeding ten days.
Meaning and purpose of Section 183
Section 183 requires the adjudicatory process under the relevant provisions of Part III of the Code to remain time-bound. If the Debt Recovery Tribunal or Debt Recovery Appellate Tribunal cannot dispose of an application or pass an order within the period prescribed by the Code, the concerned Tribunal must record the reasons for the delay within that prescribed period.
The provision then authorizes the Chairperson of the Debt Recovery Appellate Tribunal, after considering the recorded reasons, to extend the statutory period. The extension permitted by Section 183 cannot exceed ten days.
Authorities referred to in Section 183
Debt Recovery Tribunal - DRT
For the purposes of Part III of the Code, the Debt Recovery Tribunal is the adjudicating authority in matters to which the applicable provisions of the Code extend. Section 179 of the Code sets out the jurisdiction of the DRT as the adjudicating authority for individuals and partnership firms, subject to the provisions and notifications governing commencement and application of Part III.
Debt Recovery Appellate Tribunal - DRAT
The Debt Recovery Appellate Tribunal hears appeals from orders of the DRT under the relevant provisions of Part III. Section 181 provides for an appeal to the DRAT, while Section 182 provides for a further appeal to the Supreme Court on a question of law arising out of an order of the DRAT.
Key requirements under Section 183
- The DRT or DRAT should dispose of an application or pass an order within the period specified by the Code.
- If the prescribed period cannot be met, the Tribunal must record reasons for the delay within that period.
- The Chairperson of the DRAT considers the reasons recorded by the Tribunal.
- An extension may be granted where justified, but the extension under Section 183 cannot exceed ten days.
Why Section 183 is important
The Insolvency and Bankruptcy Code is structured around defined timelines. Section 183 supports that legislative objective for proceedings falling within its scope by requiring reasons for delay and restricting the additional period that may be granted. It therefore creates a statutory mechanism intended to promote prompt adjudication rather than leaving delay unexplained or open-ended.
Related provisions
Section 183 should be read in its statutory setting with Section 181 - Appeal to Debt Recovery Appellate Tribunal and Section 182 - Appeal to Supreme Court. The provisions following Section 183 deal with offences, penalties and related matters under the Code.
Official legal resources
For the authoritative statutory text and current amendments, refer to the India Code portal and the Insolvency and Bankruptcy Board of India legal framework. The IBBI also publishes Acts, rules, regulations, notifications, circulars and other updates relating to the Code.
Last reviewed: 30 September 2026. Readers should verify commencement notifications and subsequent amendments before relying on a provision for a particular proceeding.