Question

The term ‘claim’ defined under the Insolvency and Bankruptcy Code, 2016 includes right to remedy for ____.

• A. breach of contract
• B. breach of trust
• C. breach of fundamental rights
• D. tort

Hint:

Under IBC, a “claim” always revolves around a right to payment—most commonly arising from contracts.

Answer 1

The Correct Option is A

Step 1: Definition of claim.
Section 3(6) of the Insolvency and Bankruptcy Code, 2016 defines a ‘claim’ as a right to payment or a right to remedy for breach of contract, if such breach gives rise to a right to payment.
Step 2: Scope of the definition.
The definition expressly includes contractual breaches but does not extend to constitutional remedies or general tortious claims unless they result in a right to payment under contract.
Step 3: Conclusion.
Therefore, the correct answer is (A) breach of contract.