Section 83: Examination of Application by Resolution Professional under the Insolvency and Bankruptcy Code, 2016
Section 83 forms part of Chapter II, Part III of the Insolvency and Bankruptcy Code, 2016 ("IBC") dealing with the fresh start process for individuals and partnership firms. It prescribes how the resolution professional must examine an application made under Section 80, obtain further information where necessary, assess the debtor's position, and submit a reasoned report to the Adjudicating Authority.
Text of Section 83 - Examination of application by resolution professional
(1) The resolution professional shall examine the application made under section 80 within ten days of his appointment, and submit a report to the Adjudicating Authority, either recommending acceptance or rejection of the application.
(2) The report referred to in sub-section (1) shall contain the details of the amounts mentioned in the application which in the opinion of the resolution professional are-
(a) qualifying debts; and
(b) liabilities eligible for discharge under sub-section (3) of section 92.
(3) The resolution professional may call for such further information or explanation in connection with the application as may be required from the debtor or any other person who, in the opinion of the resolution professional, may provide such information.
(4) The debtor or any other person, as the case may be, shall furnish such information or explanation within seven days of receipt of the request under sub-section (3).
(5) The resolution professional shall presume that the debtor is unable to pay his debts at the date of the application if-
(a) in his opinion the information supplied in the application indicates that the debtor is unable to pay his debts and he has no reason to believe that the information supplied is incorrect or incomplete; and
(b) he has reason to believe that there is no change in the financial circumstances of the debtor since the date of the application enabling the debtor to pay his debts.
(6) The resolution professional shall reject the application, if in his opinion-
(a) the debtor does not satisfy the conditions specified under section 80; or
(b) the debts disclosed in the application by the debtor are not qualifying debts; or
(c) the debtor has deliberately made a false representation or omission in the application or with respect to the documents or information submitted.
(7) The resolution professional shall record the reasons for recommending the acceptance or rejection of the application in the report to the Adjudicating Authority under sub-section (1) and shall give a copy of the report to the debtor.
Meaning and scope of Section 83
The provision places the initial scrutiny of a fresh start application with the appointed resolution professional. The resolution professional does not finally admit the application. Instead, the professional examines the material and submits a report recommending acceptance or rejection. The Adjudicating Authority subsequently considers admission or rejection under Section 84.
Application under Section 80
Section 80 governs eligibility for making an application for a fresh start order. Section 83(1) requires the resolution professional to examine that application within ten days of appointment and report to the Adjudicating Authority.
Qualifying debts and liabilities eligible for discharge
Under Section 83(2), the report must identify the amounts which, in the resolution professional's opinion, constitute qualifying debts and liabilities eligible for discharge under Section 92(3). The expression "qualifying debt" is defined for Part III in Section 79.
Power to seek further information
Section 83(3) permits the resolution professional to seek further information or an explanation from the debtor or another person considered capable of providing it. Under Section 83(4), the requested information or explanation must be furnished within seven days after receipt of the request.
Presumption regarding inability to pay debts
Section 83(5) sets out when the resolution professional is to presume that the debtor was unable to pay debts on the date of the application. The provision requires both the information in the application to indicate inability to pay, without reason to consider that information incorrect or incomplete, and no reason to believe that the debtor's financial circumstances have since changed so as to enable payment.
Grounds for rejection
Section 83(6) requires rejection where, in the resolution professional's opinion, the debtor does not satisfy Section 80, the disclosed debts are not qualifying debts, or the debtor deliberately made a false representation or omission in the application or supporting documents or information.
Reasoned report and copy to debtor
Section 83(7) requires reasons to be recorded for recommending acceptance or rejection. A copy of the report submitted to the Adjudicating Authority must also be given to the debtor. This makes the resolution professional's recommendation a reasoned and documented step in the fresh start process.
Section 83 process at a glance
- The resolution professional examines the Section 80 application within ten days of appointment.
- The report identifies qualifying debts and liabilities eligible for discharge under Section 92(3).
- Further information or explanation may be sought from the debtor or another relevant person.
- Requested information must be supplied within seven days of receipt of the request.
- The resolution professional applies the statutory test in Section 83(5) concerning inability to pay debts.
- The application must be rejected on any ground specified in Section 83(6).
- The recommendation must contain reasons and a copy of the report must be supplied to the debtor.
Legal text checked against official IBC sources available as of September 30, 2026.