IBC Section 102: Public notice and claims from creditors

Section 102 of Insolvency and Bankruptcy Code, 2016: Public notice and claims from creditors

Official Bare Act Text

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

(1) The Adjudicating Authority shall issue a public notice within seven days of passing the order under section 100 inviting claims from all creditors within twenty-one days of such issue.

(2) The notice under sub-section (1) shall include-

(a) details of the order admitting the application;

(b) particulars of the resolution professional with whom the claims are to be registered; and

(c) the last date for submission of claims.

(3) The notice shall be-

(a) published in at least one English and one vernacular newspaper which is in circulation in the state where the debtor resides;

(b) affixed in the premises of the Adjudicating Authority; and

(c) placed on the website of the Adjudicating Authority.

Legal Commentary & Landmark Judgments: Section 102

Section 102 mandates that the Adjudicating Authority must issue a public notice within seven days of passing the admission order, calling for claims from all creditors of the individual debtor within twenty-one days.

7-Day Public Notice Mandate: The Adjudicating Authority shall issue a public notice within seven days of passing the order under Section 100.
Publication Details: Published in at least one English and one regional language newspaper with wide circulation in the district of the debtor's residence, and displayed on the DRT/NCLT and IBBI websites.
21-Day Submission Window: Must state that all creditors shall submit their claims to the resolution professional within twenty-one days from the date of the publication.
Notice of Moratorium: Public notice includes formal notice of the operation of the statutory moratorium under Section 101.

Key Landmark Precedents:

Dilip B. Jiwrajka v. Union of India (2024) 5 SCC 436: The Supreme Court noted that public notice under Section 102 ensures that all creditors of the individual debtor are brought within a single collective restructuring umbrella, preventing preferential side-deals.
Lalit Kumar Jain v. Union of India (2021) 9 SCC 321: Affirmed that Chapter III insolvency relies on collective creditor participation initiated by the Section 102 notice.

Courtroom Practice & Strategic Litigation Guidance:

Creditors holding personal guarantees must track Section 102 public notices in national financial dailies. Submit your claim in the prescribed form with original guarantee contracts and loan statements within the 21-day statutory window.