Claim Under the Insolvency and Bankruptcy Code, 2016

 Under the Insolvency and Bankruptcy Code, 2016 (IBC), the term "claim" is defined in a broad and inclusive manner. It is a critical concept, as both "debt" and "default" under the IBC are based on the existence of a claim.

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📘 Statutory Definition:

Section 3(6) of the IBC defines “claim” as:

"a right to payment, whether or not such right is reduced to judgment, fixed, disputed, undisputed, legal, equitable, secured or unsecured;"
or
"a right to remedy for breach of contract under any law for the time being in force, if such breach gives rise to a right to payment, whether or not such right is reduced to judgment, fixed, matured, disputed, undisputed, secured or unsecured."

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✅ Key Features of a "Claim":

1. Broad scope:

   • Covers both monetary and remedial rights that can lead to payment.

2. No requirement for certainty:

   • Can be disputed or undisputed, fixed or unliquidated, matured or unmatured.

3. Includes legal and equitable rights:

   • Even a right based on fairness (not strict law) can be a claim.

4. Includes rights to remedy breaches:

   • For example, compensation for breach of contract.

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🔍 Examples of "Claim" under IBC:

• A supplier demanding payment for delivered goods.

• An employee seeking unpaid salary.

• A bank asserting recovery of a defaulted loan.

• A government department claiming unpaid taxes or duties.

• A party claiming damages for breach of a service contract.

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📂 Types of Claims:

Type	Basis	Examples
Financial Claim	Based on disbursal of money with time value	Loans, bonds, interest-bearing instruments
Operational Claim	Based on goods, services, or statutory dues	Supplier invoices, employee dues, tax claims
Contingent Claim	Dependent on a future event	Performance guarantees, indemnities

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📌 Role in IBC:

• The insolvency resolution process starts when a claim (debt) is shown to be in default.

• Creditors must file their claims with proof before the Resolution Professional (RP).

• Only valid claims are considered in the Committee of Creditors (CoC) and in resolution plans.