Sections 130 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.
After a bankruptcy order, the creditors have to be found, told and given a short time to claim. Section 130 provides for notices to known creditors and a public notice to all. Section 131 provides for registration of claims with the bankruptcy trustee, and section 132 for the trustee's list of creditors. The periods are tight and run partly from the bankruptcy commencement date. This article reads the three sections as printed in the IBBI consolidated text of the Code amended up to 12 August 2021. Creditors who need to prepare a claim quickly can start with our recovery notice service.
Within ten days of the bankruptcy commencement date the Adjudicating Authority sends notices to the creditors named in the bankrupt's statement or application and issues a public notice inviting claims, which must state the last date for claims. Creditors register claims with the bankruptcy trustee within seven days of the publication of the public notice. The trustee prepares the list of creditors within fourteen days from the bankruptcy commencement date, from the bankrupt's disclosures and the claims received. The section references in sections 132(a) and (b) contain printing slips that are flagged below.
Section 130: notice to creditors and the public notice
What the Authority must do (sub-section (1)). "The Adjudicating Authority shall":
(a) "send notices within ten days of the bankruptcy commencement date, to the creditors mentioned in" (i) "the statement of affairs submitted by the bankrupt under section 129", or (ii) "the application for bankruptcy submitted by the bankrupt under section 122"; and
(b) "issue a public notice inviting claims from creditors."
So two groups are reached. Creditors named by the bankrupt, in the statement or the application, receive direct notices. Creditors not named are reached by the public notice. The ten-day period is printed against clause (a); clause (b) prints no period of its own. Section 79 defines the bankruptcy commencement date as the date on which a bankruptcy order is passed under section 126.
Public notice (sub-section (2)). The public notice "shall include the last date up to which the claims shall be submitted and such other matters and details as may be prescribed and shall be":
| Clause | Mode |
|---|---|
| (a) | Published in leading newspapers, one in English and another in vernacular having sufficient circulation where the bankrupt resides |
| (b) | Affixed on the premises of the Adjudicating Authority |
| (c) | Placed on the website of the Adjudicating Authority |
Notice to creditors (sub-section (3)). "The notice to the creditors referred to under clause (a) of sub-section (1) shall include such matters and details as may be prescribed." What is prescribed is not in the texts consulted. The Insolvency and Bankruptcy Board of India (Bankruptcy Process for Personal Guarantors to Corporate Debtors) Regulations, 2019 is the regulation set for bankruptcy of personal guarantors; the copy consulted is amended up to 02-06-2026. No rules or regulations on other individuals or on partnership firms are in the texts consulted, so no details are given here.
Section 131: registration of claims
"The creditors shall register claims with the bankruptcy trustee within seven days of the publication of the public notice, by sending details of the claims to the bankruptcy trustee in such manner as may be prescribed."
- Where: with the bankruptcy trustee.
- When: within seven days of the publication of the public notice. The clock runs from publication, not from the bankruptcy order and not from receipt of a notice. Where the public notice is published on different dates in different media, the section does not say which date counts; the creditor should work to the earliest.
- How: "in such manner as may be prescribed".
Sub-section (2): "The creditor, in addition to the details of his claims, shall provide such other information and in such manner as may be prescribed."
Seven days is short compared with the individual insolvency process, where the notice invites claims within twenty-one days of issue (section 102(1)); see our article on sections 102 to 104. The sections do not say what follows a claim made after seven days. Check the other provisions on proof of debt, which are discussed in our note on proof of debt under sections 171 to 173.
Section 132: the list of creditors
"The bankruptcy trustee shall, within fourteen days from the bankruptcy commencement date, prepare a list of creditors of the bankrupt on the basis of":
(a) "the information disclosed by the bankrupt in the application for bankruptcy filed by the bankrupt under section 118 and the statement of affairs filed under section 125; and"
(b) "claims received by the bankruptcy trustee under sub-section (2) of section 130."
Printing slips: in clause (a) the application for bankruptcy by the debtor is made under section 122, not section 118, and the statement is submitted under section 129, not section 125. In clause (b), claims are registered under section 131, whereas sub-section (2) of section 130 deals with the contents and publication of the public notice. These cross-references are quoted as printed and not corrected.
The list is prepared from two sources: what the bankrupt disclosed and what creditors claimed. That is why the bankrupt's statement under section 129 matters; see our article on section 129.
| Step | Who | Period printed | Section |
|---|---|---|---|
| Notices to creditors named by the bankrupt | Adjudicating Authority | Within ten days of the bankruptcy commencement date | 130(1)(a) |
| Public notice inviting claims | Adjudicating Authority | No period printed | 130(1)(b) |
| Registration of claims | Creditors, with the bankruptcy trustee | Within seven days of publication of the public notice | 131(1) |
| List of creditors | Bankruptcy trustee | Within fourteen days from the bankruptcy commencement date | 132 |
Example. A bankruptcy order is passed against Harish Jain on a stated day. His statement lists a bank and two suppliers. Within ten days the Authority sends each a notice and issues a public notice that fixes the last date for claims. A transporter, Vikas Roadlines, not named by Harish, reads the notice in a newspaper and sends details of its claim to the bankruptcy trustee within seven days of publication. The trustee, within fourteen days from the order, prepares the list of creditors from Harish's disclosures and the claims received.
Why the list matters
The list under section 132 is the roll for the first meeting of the creditors. The trustee issues the notice calling the meeting to every creditor "as mentioned in the list prepared under section 132" (section 133(1)), and only creditors on that list may vote (section 135(4)); see our article on sections 133 to 135.
The Amendment Act, 2026
The Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026) does not amend sections 130, 131 or 132 as printed in the texts consulted. 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 any change in Part III has 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.
Need help putting in a claim in a bankruptcy?
With only seven days from publication of the public notice, a creditor must be ready to document the debt at once. Our recovery notice team can help you assemble the details of your claim and send them to the bankruptcy trustee in the manner required.
Key takeaways
- Notices go to named creditors within ten days of the bankruptcy commencement date; the public notice states the last date for claims.
- The public notice appears in an English and a vernacular newspaper, on the Authority's premises and on its website.
- Claims go to the bankruptcy trustee within seven days of publication of the public notice.
- The trustee's list of creditors is due within fourteen days from the bankruptcy commencement date.
- Sections 132(a) and (b) carry cross-reference slips.
Read next
- Sections 133 to 135: the meeting of creditors in bankruptcy
- Section 129: statement of financial position of the bankrupt
- Sections 136 and 137: administration of the estate and completion
- Proof of debt under sections 171 to 173
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.