How to File Under Sections 94 and 95 of the Insolvency and Bankruptcy Code, 2016: Procedure, Limitation and Key Rulings

Abstract

The Insolvency and Bankruptcy Code (IBC) of 2016 transformed India’s insolvency framework by establishing a consolidated, time-bound process for addressing the insolvency of both corporate entities and individuals. While Part II deals with corporate insolvency, Part III of the Code extends its provisions to individuals and partnership firms, particularly personal guarantors to corporate debtors. This paper examines the procedural and legal aspects of Sections 94 and 95, which empower debtors and creditors respectively to initiate insolvency resolution before the National Company Law Tribunal (NCLT). The discussion focuses on the applicability of the Limitation Act, 1963—especially Article 137—acknowledgment of liability under Section 18, and judicial pronouncements shaping the interpretation of these provisions. Drawing on landmark rulings including Lalit Kumar Jain v. Union of India, B.K. Educational Services v. Parag Gupta & Associates, and Dena Bank v. C. Shivakumar Reddy, the paper analyses limitation issues, procedural steps, and practical challenges in implementation. The study also evaluates the effectiveness of the personal guarantor insolvency framework, highlighting procedural bottlenecks and suggesting reforms to enhance efficiency, judicial consistency, and creditor confidence within the insolvency ecosystem.