Section 13 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 13 is the hinge of the corporate insolvency resolution process. Once the Adjudicating Authority admits an application under section 7, 9 or 10, section 13 requires one order that does three things: it declares a moratorium, it causes a public announcement calling for claims, and it appoints an interim resolution professional. This article reads it as per the IBBI consolidated text of the Code amended up to 12 August 2021.
After admission of an application under section 7, 9 or 10, the Adjudicating Authority shall, by an order, (a) declare a moratorium for the purposes of section 14, (b) cause a public announcement of the initiation of the process and call for claims under section 15, and (c) appoint an interim resolution professional as laid down in section 16. The public announcement must be made immediately after the appointment of the interim resolution professional.
Sub-section (1): one order, three directions
Section 13(1) reads: "The Adjudicating Authority, after admission of the application under section 7 or section 9 or section 10, shall, by an order" do the three things below. The word "shall" leaves no room for the Adjudicating Authority to pick among them.
| Clause | What the order must do | Where the detail is |
|---|---|---|
| (a) | declare a moratorium for the purposes referred to in section 14 | Section 14 |
| (b) | cause a public announcement of the initiation of corporate insolvency resolution process and call for the submission of claims under section 15 | Section 15 |
| (c) | appoint an interim resolution professional in the manner as laid down in section 16 | Section 16 |
Section 13 itself does not say what the moratorium covers, how the announcement is published, or who may be appointed. It points to sections 14, 15 and 16 for those matters, and the three live posts linked above deal with them; this article does not repeat them. A creditor or director who needs help reading an admission order can ask for a legal dispute resolution review.
The text prints "section 16." at the top of the next page because a page break falls inside clause (c); the sentence is complete as read across the break.
Sub-section (2): when the announcement is made
Section 13(2): "The public announcement referred to in clause (b) of sub-section (1) shall be made immediately after the appointment of the interim resolution professional." So the sequence in the order is moratorium, appointment, then announcement. The announcement cannot precede the appointment. "Immediately" is not defined in the section; the period for the announcement itself is dealt with in section 15.
Example. The Adjudicating Authority admits a section 9 application against Orbit Glassworks Private Limited. Its order declares the moratorium, names an insolvency professional as interim resolution professional, and directs the announcement. The announcement is made as soon as that appointment is made; creditors who see it can submit claims under section 15.
What follows the order
Several later provisions work from the order under section 13.
- Management. Section 17(1) says "from the date of appointment of the interim resolution professional" the management of the affairs of the corporate debtor vests in the interim resolution professional and the powers of the board of directors or partners stand suspended. See our section 17 article.
- Collation of claims. Section 18(b) requires the interim resolution professional to receive and collate all claims submitted by creditors "pursuant to the public announcement made under sections 13 and 15". See the section 18 article.
- Dates and periods. The insolvency commencement date is the date of admission (section 5(12)) and the insolvency resolution process period is one hundred and eighty days from that date (section 5(14)); section 12 deals with completion. Our section 5 article sets out those definitions, and the live post on section 12 deals with the timeline.
Who should read section 13 closely
- Creditors need the public announcement to know the process has begun and that claims are called for.
- The corporate debtor and its directors need the moratorium and appointment date, because management changes from the date of appointment.
- Operational creditors and others with claims who learn of the process only from the announcement should read section 15.
- Insolvency professionals act under the order from the date of appointment.
A creditor deciding whether to submit a claim after an announcement, or a director responding to an admission order, should plan the response from the order and the announcement together.
The 2026 Amendment Act and section 13
The Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026) does not amend section 13. It does amend sections 14 and 16, which section 13 points to; for those changes, read the live posts on section 14 and section 16 with the Act itself. The Amendment Act, 2026 comes into force on the date or dates the Central Government notifies; the notification is not in the texts consulted, so check whether those changes have been notified. Amendments and notifications made after 12 August 2021, other than the Amendment Act, 2026, are not in the texts consulted and should be checked.
The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 provide the detail of the process; the copy consulted is amended up to 09-06-2026 as printed under its title.
Need help after an admission order?
The first days after admission set the tone for the whole process. A legal dispute resolution engagement can cover reading the order, tracking the announcement and preparing claims or responses for the creditor or the corporate debtor.
Key takeaways
- One order after admission must declare the moratorium, cause the public announcement and appoint an interim resolution professional.
- The public announcement is made immediately after the appointment of the interim resolution professional.
- Sections 14, 15 and 16 carry the detail; section 13 only directs.
- Section 13 is not amended by the 2026 Act, but sections 14 and 16 are.
Read next
- Section 17: management by the interim resolution professional
- Section 18: duties of the interim resolution professional
- Section 15: public announcement
- CIRP step-by-step guide
Disclaimer: Based on the IBBI consolidated text of the Insolvency and Bankruptcy Code, 2016 amended up to 12 August 2021 and on the Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026), which comes into force on the date or dates notified by the Central Government, as consulted on 2 October 2026. It explains the words of the statute only; commencement notifications, other amendments made after 12 August 2021, notified thresholds, the rules and IBBI regulations, and the way tribunals and courts apply these sections should be checked. This article is general information, not legal advice; check the official text before acting.