IBC Section 103: Registering of claims by creditors

Section 103 of Insolvency and Bankruptcy Code, 2016: Registering of claims by creditors

Official Bare Act Text

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

(1) The creditors shall register claims with the resolution professional by sending details of the claims by way of electronic communications or through courier, speed post or registered letter.

(2) In addition to the claims referred to in sub-section (1), the creditor shall provide to the resolution professional, personal information and such particulars as may be prescribed.

Legal Commentary & Landmark Judgments: Section 103

Section 103 prescribes the statutory procedure for creditors to register and submit their financial claims to the Resolution Professional in individual insolvency proceedings.

Claim Submission Formats: A creditor shall register claims with the resolution professional by sending details of claims by way of its statement of affairs or specified forms.
Documentary Proof Requirements: Must produce contracts, promissory notes, guarantees, bank statements, Information Utility records, or court decrees proving the debt.
Secured Creditor Valuation: Secured creditors must provide details of security, value of security, and dates on which security was created.
Verification Authorization: The RP may require the creditor to produce further evidence to substantiate the claim.

Key Landmark Precedents:

Dilip B. Jiwrajka v. Union of India (2024) 5 SCC 436: The Supreme Court held that the claim registration process under Section 103 establishes the verified liabilities of the debtor for the purpose of formulating a workable repayment plan.
Swiss Ribbons Pvt. Ltd. v. Union of India (2019) 4 SCC 17: Affirmed that systematic claim verification under the Code eliminates inflated or bogus debts.

Courtroom Practice & Strategic Litigation Guidance:

In individual insolvency, compute your claim as of the insolvency commencement date under Section 103. Attach the NeSL default certificate and certified statement of account showing principal and accrued interest.