Proof of debt
Section 171 of the Insolvency and Bankruptcy Code, 2016 deals with proof of debt. The bankruptcy trustee shall give notice to each of the creditors to submit proof of debt within fourteen days of preparing the list of creditors under section 132. The Act was enacted on 28 May 2016.
(1) The bankruptcy trustee shall give notice to each of the creditors to submit proof of debt within fourteen days of preparing the list of creditors under section 132.
(2) The proof of debt shall—
(a) require the creditor to give full particulars of debt, including the date on which the debt was contracted and the value at which that person assesses it;
(b) require the creditor to give full particulars of the security, including the date on which the security was given and the value at which that person assesses it;
(c) be in such form and manner as may be prescribed.
(3) In case the creditor is a decree holder against the bankrupt, a copy of the decree shall be a valid proof of debt.
(4) Where a debt bears interest, that interest shall be provable as part of the debt except in so far as it is owed in respect of any period after the bankruptcy commencement date.
(5) The bankruptcy trustee shall estimate the value of any bankruptcy debt which does not have a specific value.
(6) The value assigned by the bankruptcy trustee under sub-section (5) shall be the amount provable by the concerned creditor.
(7) A creditor may prove for a debt where payment would have become due at a date later than the bankruptcy commencement date as if it were owed presently and may receive dividends in a manner as may be prescribed.
(8) Where the bankruptcy trustee serves a notice under sub-section (1) and the person on whom the notice is served does not file a proof of security within thirty days after the date of service of the notice, the bankruptcy trustee may, with leave of the Adjudicating Authority, sell or dispose of any property that was subject to the security, free of that security.
Section 171, The Insolvency and Bankruptcy Code, 2016 (Act 31 of 2016).
Cross-references
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Questions about Section 171
What does Section 171 of the Insolvency and Bankruptcy Code deal with?
Section 171 of the Insolvency and Bankruptcy Code is headed "Proof of debt". The bankruptcy trustee shall give notice to each of the creditors to submit proof of debt within fourteen days of preparing the list of creditors under section 132.
How do I find court cases under Section 171 of the Insolvency and Bankruptcy Code?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Insolvency and Bankruptcy Code 171, section 171 Insolvency and Bankruptcy Code, section 171 of the Insolvency and Bankruptcy Code. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 171 of the Insolvency and Bankruptcy Code, and has it changed?
Its own text turns on section 132 (Preparation of list of creditors), so none of them can safely be read on its own. 2 other provisions in this corpus refer back to it.
When was Section 171 of the Insolvency and Bankruptcy Code enacted?
Section 171 of the Insolvency and Bankruptcy Code, cited as Insolvency and Bankruptcy Code 171, was enacted on 28 May 2016 as Act 31 of 2016. It is in force as at the date shown on this page.
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Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 22 Oct 2026. This page is not a substitute for legal advice.