IBC Section 99: Submission of report by resolution professional

Section 99 of Insolvency and Bankruptcy Code, 2016: Submission of report by resolution professional

Official Bare Act Text

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

(1) The resolution professional shall examine the application referred to in section 94 or section 95, as the case may be, within ten days of his appointment, and submit a report to the Adjudicating Authority recommending for approval or rejection of the application.

(2) Where the application has been filed under section 95, the resolution professional may require the debtor to prove repayment of the debt claimed as unpaid by the creditor by furnishing-

(a) evidence of electronic transfer of the unpaid amount from the bank account of the debtor;

(b) evidence of encashment of a cheque issued by the debtor; or

(c) a signed acknowledgment by the creditor accepting receipt of dues.

(3) Where the debt for which an application has been filed by a creditor is registered with the information utility, the debtor shall not be entitled to dispute the validity of such debt.

(4) For the purposes of examining an application, the resolution professional may seek such further information or explanation in connection with the application as may be required from the debtor or the creditor or any other person who, in the opinion of the resolution professional, may provide such information.

(5) The person from whom information or explanation is sought under sub-section (4) shall furnish such information or explanation within seven days of receipt of the request.

(6) The resolution professional shall examine the application and ascertain that-

(a) the application satisfies the requirements set out in section 94 or 95;

(b) the applicant has provided information and given explanation sought by the resolution professional under sub-section (4).

(7) After examination of the application under sub-section (6), he may recommend acceptance or rejection of the application in his report.

(8) Where the resolution professional finds that the debtor is eligible for a fresh start under Chapter II, the resolution professional shall submit a report recommending that the application by the debtor under section 94 be treated as an application under section 81 by the Adjudicating Authority.

(9) The resolution professional shall record the reasons for recommending the acceptance or rejection of the application in the report under sub-section (7).

(10) The resolution professional shall give a copy of the report under sub-section (7) to the debtor or the creditor, as the case may be.

Legal Commentary & Landmark Judgments: Section 99

Section 99 defines the crucial investigatory function of the Resolution Professional, mandating the submission of an objective report within ten days recommending the approval or rejection of the individual insolvency application.

Strict 10-Day Report Mandate: The resolution professional shall examine the application within ten days of his appointment and submit a report to the Adjudicating Authority recommending approval or rejection.
Verification of Debt & Default: The RP must examine whether the application satisfies statutory requirements and whether the debtor has paid the debt.
Power to Require Information (Section 99(2)): The RP may require the debtor to produce evidence proving repayment or absence of default.
Recommendation of Approval or Rejection: The report must record clear reasons recommending approval or rejection of the application, with a copy furnished to the debtor and creditor.

Key Landmark Precedents:

Dilip B. Jiwrajka v. Union of India (2024) 5 SCC 436: The 3-Judge Bench held that the RP's function under Section 99 is purely investigatory and recommendatory; the RP does not exercise adjudicatory powers, and the debtor is not entitled to a full adversarial hearing before the RP at the Section 99 stage, preserving the constitutional validity of the provision.
Lalit Kumar Jain v. Union of India (2021) 9 SCC 321: Affirmed that the Section 99 report provides an objective evidentiary foundation for the NCLT to decide admission under Section 100.

Courtroom Practice & Strategic Litigation Guidance:

Respond to the RP's Section 99 notice with all payment receipts, bank settlement letters, or revocation of guarantee notices within the 10-day window. While the RP's report is recommendatory under Dilip Jiwrajka, it strongly influences the Section 100 admission decision.