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Section40
The Insolvency and Bankruptcy Code, 2016

Admission or rejection of claims

In force Act 31 of 2016 As on 19 Oct 2026

Act 31 of 2016 Ministry Corporate Affairs Enacted 28 May 2016 Cited by 1 provision Instruments 4

Section 40 of the Insolvency and Bankruptcy Code, 2016 deals with admission or rejection of claims. The liquidator may, after verification of claims under section 39, either admit or reject the claim, in whole or in part, as the case may be: Provided that where the liquidator rejects a claim, he shall record in writing the reasons for such rejection. The Act was enacted on 28 May 2016.

(1) The liquidator may, after verification of claims under section 39, either admit or reject the claim, in whole or in part, as the case may be:

Provided that where the liquidator rejects a claim, he shall record in writing the reasons for such rejection.

(2) The liquidator shall communicate his decision of admission or rejection of claims to the creditor and corporate debtor within seven days of such admission or rejection of claims.

Section 40, The Insolvency and Bankruptcy Code, 2016 (Act 31 of 2016).

Cross-references

Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.

This section refers to

  1. s. 39 Verification of claims

Referred to by 1

  1. s. 41 Determination of valuation of claims

Made under this section, and citing it

4 instruments name this provision in its title or its text without being made under it.

All subordinate legislation

Questions about Section 40

What does Section 40 of the Insolvency and Bankruptcy Code deal with?

Section 40 of the Insolvency and Bankruptcy Code is headed "Admission or rejection of claims". The liquidator may, after verification of claims under section 39, either admit or reject the claim, in whole or in part, as the case may be: Provided that where the liquidator rejects a claim, he shall record in writing the reasons for such rejection.

How do I find court cases under Section 40 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 40, section 40 Insolvency and Bankruptcy Code, section 40 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 40 of the Insolvency and Bankruptcy Code, and has it changed?

Its own text turns on section 39 (Verification of claims), so none of them can safely be read on its own. 1 other provision in this corpus refers back to it. 4 instruments name it without being made under it, most recently Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Amendment) Regulations, 2022 (2022), then No. 15/GST-2 Notification under section 148 to provide special procedure for corporate debtors undergoing the corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016 under the HGST Act, 2017 (2020).

When was Section 40 of the Insolvency and Bankruptcy Code enacted?

Section 40 of the Insolvency and Bankruptcy Code, cited as Insolvency and Bankruptcy Code 40, was enacted on 28 May 2016 as Act 31 of 2016. It is in force as at the date shown on this page.

Other sections of this Act

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 19 Oct 2026. This page is not a substitute for legal advice.