Application by creditor to initiate insolvency resolution process
Section 95 of the Insolvency and Bankruptcy Code, 2016 deals with application by creditor to initiate insolvency resolution process. A creditor may apply either by himself, or jointly with other creditors, or through a resolution professional to the Adjudicating Authority for initiating an insolvency resolution process under this section by submitting an application. The Act was enacted on 28 May 2016.
(1) A creditor may apply either by himself, or jointly with other creditors, or through a resolution professional to the Adjudicating Authority for initiating an insolvency resolution process under this section by submitting an application.
(2) A creditor may apply under sub-section (1) in relation to any partnership debt owed to him for initiating an insolvency resolution process against—
(a) any one or more partners of the firm; or
(b) the firm.
(3) Where an application has been made against one partner in a firm, any other application against another partner in the same firm shall be presented in or transferred to the Adjudicating Authority in which the first mentioned application is pending for adjudication and such Adjudicating Authority may give such directions for consolidating the proceedings under the applications as it thinks just.
(4) An application under sub-section (1) shall be accompanied with details and documents relating to—
(a) the debts owed by the debtor to the creditor or creditors submitting the application for insolvency resolution process as on the date of application;
(b) the failure by the debtor to pay the debt within a period of fourteen days of the service of the notice of demand; and
(c) relevant evidence of such default or non-repayment of debt.
(5) The creditor shall also provide a copy of the application made under sub-section (1) to the debtor.
(6) The application referred to in sub-section (1) shall be in such form and manner and accompanied by such fee as may be prescribed.
(7) The details and documents required to be submitted under sub-section (4) shall be such as may be specified.
Section 95, 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.
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Lalit Kumar Jain v. Union of India
Court's Decision & Legal Precedent
The 15.11.2019 notification applying Part III of the IBC to personal guarantors of corporate debtors is legal and valid; approval of a corporate debtor’s resolution plan does not ipso facto discharge personal guarantors, whose independent guarantee liability survives for creditor-initiated processes under Part III (including s.95 applications).
On this section: Part III creditor applications against personal guarantors (s.95 framework) are sustained by upholding the notification and rejecting discharge-by-plan arguments.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… The appellant seeks a stay on the penalty proceedings before the NCDRC, contending that an <span id="page-0-0"></span><sup>1</sup> NCDRC application under Section 95 of the Insolvency and Bankruptcy Code, 2016[2]( page-1-0) has been filed against them, triggering an interim moratorium under Section 96 of the IBC. - 2. This Court is called upon to adjudicate whether execution proceedings under Section 27 of the Consumer Protection Act, 1986[3]( page-1-1), can also be stayed …
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… The Respondent Bank filed an O.A. before the DRT against the principal borrower firm M/s Agson Global Private Limited ('borrower firm') and the Petitioners herein, on 25th August, 2023. 3. The Respondent thereafter initiated personal insolvency proceedings against the Petitioners by filing an application under Section 95 of the Insolvency and Bankruptcy Code, 2016 ('IBC') registered as IB/745/ND/2023 and IB/746/ND/2023. In the said application the National Company Law Tribunal, New Delhi ('NCLT') passed an order dated 20th December, 2023 appointing a Resolution Professional ('RP'). 4. It is stated that Corporate Insolvency …
Made under this section, and citing it
1 instrument names this provision in its title or its text without being made under it.
Questions about Section 95
What have the courts held on Section 95 of the Insolvency and Bankruptcy Code?
Lalit Kumar Jain v. Union of India (21 May 2021) is the leading judgment on this section among those set out below: Part III creditor applications against personal guarantors (s.95 framework) are sustained by upholding the notification and rejecting discharge-by-plan arguments.
How do I find court cases under Section 95 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 95, section 95 Insolvency and Bankruptcy Code, section 95 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. 1 reported judgment on this section is set out on this page, beginning with Lalit Kumar Jain v. Union of India (21 May 2021).
What should I read with Section 95 of the Insolvency and Bankruptcy Code, and has it changed?
7 other provisions in this corpus refer back to it. One instrument names it without being made under it, most recently Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019 dated 15.11.2019 (2019).
When was Section 95 of the Insolvency and Bankruptcy Code enacted?
Section 95 of the Insolvency and Bankruptcy Code, cited as Insolvency and Bankruptcy Code 95, 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
- 240. Power to make regulations2349 words
- 5. Definitions2326 words
- 3. Definitions1381 words
- 29A. Person not eligible to be resolution applicant1152 words
- 239. Power to make rules963 words
- 196. Powers and functions of Board942 words
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 15 Oct 2026. This page is not a substitute for legal advice.