IBC Section 84: Admission or rejection of application by Adjudicating Authority

Section 84 of Insolvency and Bankruptcy Code, 2016: Admission or rejection of application by Adjudicating Authority

Official Bare Act Text

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

(1) The Adjudicating Authority may within fourteen days from the date of submission of the report by the resolution professional, pass an order either admitting or rejecting the application made under sub-section (1) of section 81.

(2) The order passed under sub-section (1) accepting the application shall state the amount which has been accepted as qualifying debts by the resolution professional and other amounts eligible for discharge under section 92 for the purposes of the fresh start order.

(3) A copy of the order passed by the Adjudicating Authority under sub-section (1) along with a copy of the application shall be provided to the creditors mentioned in the application within seven days of the passing of the order.

Legal Commentary & Landmark Judgments: Section 84

Section 84 regulates the submission of the report by the Resolution Professional recommending the acceptance or rejection of the fresh start application.

Recommendation of Acceptance: Where the RP is satisfied that the debtor meets Section 80 criteria and debts are qualifying debts, the RP recommends acceptance of the application.
Recommendation of Rejection: Where criteria are not met, the debtor made false representations, or the debtor has been subject to previous insolvency, the RP recommends rejection.
List of Qualifying Debts: The report must specifically list the qualifying debts that should be approved for discharge, and debts that should be excluded.
Copy to Debtor: A copy of the report shall be provided to the debtor immediately.

Key Landmark Precedents:

Dilip B. Jiwrajka v. Union of India (2024) 5 SCC 436: The Supreme Court noted that the Section 84 report is a facilitative document, with the final judicial order of admission or rejection remaining exclusively with the Adjudicating Authority.
Lalit Kumar Jain v. Union of India (2021) 9 SCC 321: Affirmed that the procedural safeguards under Section 84 ensure natural justice before any debt discharge order is formulated.

Courtroom Practice & Strategic Litigation Guidance:

If the RP recommends rejection under Section 84 due to disputed debt amounts, the debtor should file a written reply before the DRT pointing out clerical errors or requesting re-examination under Section 86.