IBC Section 15: Public announcement of corporate insolvency resolution process

Section 15 of Insolvency and Bankruptcy Code, 2016: Public announcement of corporate insolvency resolution process

Official Bare Act Text

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

(1) The public announcement of the corporate insolvency resolution process under the order referred to in section 13 shall contain the following information, namely:-

(a) name and address of the corporate debtor under the corporate insolvency resolution process;

(b) name of the authority with which the corporate debtor is incorporated or registered;

(c) the last date for submission of claims, as may be specified;

(d) details of the interim resolution professional who shall be vested with the management of the corporate debtor and be responsible for receiving claims;

(e) penalties for false or misleading claims; and

(f) the date on which the corporate insolvency resolution process shall close, which shall be the one hundred and eightieth day from the date of the admission of the application under sections 7, 9 or section 10, as the case may be.

2) The public announcement under this section shall be made in such manner as may be specified.

Legal Commentary & Landmark Judgments: Section 15

Section 15 prescribes the mandatory contents, statutory timelines, and publication modes for the public announcement of the Corporate Insolvency Resolution Process to notify creditors and stakeholders.

Mandatory Information Contained: Public announcement must contain: name and address of corporate debtor, registration details, name and registration of IRP, penalties for false claims, and reference to online claim submission.
Last Date for Claim Submission: Must specify the last date for submission of claims, which shall be fourteen days from the date of the appointment of the IRP.
Circulation Modes (Regulation 6): Must be published in one English and one regional language newspaper with wide circulation at the registered office and principal office of the corporate debtor, and uploaded on the corporate debtor's and IBBI websites.

Key Landmark Precedents:

Ghanashyam Mishra and Sons Pvt. Ltd. v. Edelweiss Asset Reconstruction Co. Ltd. (2021) 9 SCC 657: The Supreme Court held that once the public announcement is made under Section 15 and a resolution plan is approved under Section 31, all claims not submitted within the CIRP process stand permanently extinguished; no creditor can pursue belated claims.
Brilliant Alloys Pvt. Ltd. v. S. Rajagopal (2022) 2 SCC 544: Emphasized that Section 15 notices establish nationwide constructive notice to all operational, financial, and statutory creditors.

Courtroom Practice & Strategic Litigation Guidance:

The IRP must publish Form A in national and local newspapers within three days of appointment under Regulation 6. Creditors must submit claims in Form B (Operational), Form C (Financial), or Form D (Workmen) before the 14-day statutory deadline.