IBC Section 100: Admission or rejection of application

Section 100 of Insolvency and Bankruptcy Code, 2016: Admission or rejection of application

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

(1) The Adjudicating Authority shall, within fourteen days from the date of submission of the report under section 99 pass an order either admitting or rejecting the application referred to in section 94 or 95, as the case may be.

(2) Where the Adjudicating Authority admits an application under sub-section (1), it may, on the request of the resolution professional, issue instructions for the purpose of conducting negotiations between the debtor and creditors and for arriving at a repayment plan.

(3) The Adjudicating Authority shall provide a copy of the order passed under sub-section (1) along with the report of the resolution professional and the application referred to in section 94 or 95, as the case may be, to the creditors within seven days from the date of the said order.

(4) If the application referred to in section 94 or 95, as the case may be, is rejected by the Adjudicating Authority on the basis of report submitted by the resolution professional that the application was made with the intention to defraud his creditors or the resolution professional, the order under sub-section (1) shall record that the creditor is entitled to file for a bankruptcy order under Chapter IV.

Legal Commentary & Landmark Judgments: Section 100

Section 100 governs the judicial admission or rejection of an insolvency resolution application against a personal guarantor by the Adjudicating Authority.

Statutory Relief & Application: The NCLT is mandated to pass an order admitting or rejecting the application within 14 days of receiving the RP's recommendation report under Section 99.
Core Legal Standard: Upon admission, a full statutory moratorium under Section 101 attaches, public notice is issued inviting creditor claims, and the debtor prepares a formal repayment plan under the supervision of the RP.

Key Landmark Precedents:

Dilip B. Jiwrajka v. Union of India (2023) SCC OnLine SC 1530: Held that Section 100 is the critical judicial stage where the Adjudicating Authority applies its mind, conducts an adversarial hearing, and determines whether default occurred and whether to admit the application.

Legal Commentary:

Section 100 constitutes the primary constitutional safeguard under Part III, guaranteeing personal guarantors a complete judicial hearing before severe statutory moratoriums and repayment plan mechanisms take effect.