valid as on 22/10/2020

IBC Section 10-Initiation of corporate insolvency resolution process by corporate applicant.
Effective from 01.12.2016 and font in blue is effective from 06.06.2018

(1) Where a corporate debtor has committed a default, a corporate applicant thereof may file an application for initiating corporate insolvency resolution process with the Adjudicating Authority.

(2) The application under sub-section (1) shall be filed in such form, containing such particulars and in such manner and accompanied with such fee

(3) The corporate applicant shall, along with the application furnish the information relating to—

(a) its books of account and such other documents relating to such period as may be specified; and

(b) the resolution professional proposed to be appointed as an interim resolution professional.

The corporate applicant shall, along with the application, furnish-

(a) the information relating to its books of account and such other documents for such period as may be specified;

(b) the information relating to the resolution professional proposed to be appointed as an interim resolution professional; and

(c) the special resolution passed by shareholders of the corporate debtor or the resolution passed by at least three-fourth of the total number of partners of the corporate debtor, as the case may be, approving filing of the application.

(4) The Adjudicating Authority shall, within a period of fourteen days of the receipt of the application, by an order—

(a) admit the application, if it is complete ; or

(b) reject the application, if it is incomplete  :

Provided that Adjudicating Authority shall, before rejecting an application, give a notice to the applicant to rectify the defects in his application within seven days from the date of receipt of such notice from the Adjudicating Authority.

(5) The corporate insolvency resolution process shall commence from the date of admission of the application under sub-section (4) of this section.

Notwithstanding anything contained in Sections 7, 9 and 10, no application for initiation of corporate insolvency resolution process of a corporate debtor shall be filed, for any default arising on or after 25th March, 2020 for a period of six months or such further period,

 

Provided that no application shall ever be filed for initiation of corporate insolvency resolution process of a corporate debtor for the said default occurring during the said period.

Explanation- For the removal of doubts, it is hereby clarified that the provisions of this section shall not apply to any default committed under the the said sections before 25th March, 2020.

Refer rule 7, 8, 9 Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. To view the rule,Click Here
Substituted vide the Insolvency and Bankruptcy Code (Second Amendment) Act, 2018 dated 17.08.2018 w.e.f., 06.06.2018. To view the Notification,Click Here
Inserted vide the Insolvency and Bankruptcy Code (Second Amendment) Act, 2018 dated 17.08.2018 w.e.f., 06.06.2018. To view the Notification,Click Here
Inserted vide the Insolvency and Bankruptcy Code (Second Amendment) Act, 2018 dated 17.08.2018 w.e.f., 06.06.2018. To view the Notification, Click Here
  1. Inserted vide The Insolvency and Bankruptcy Code (Second Amendment) Act, 2020 dated 23.09.2020. To view the Notification, Click Here. The Ordinance dated 05.06.2020 stands repealed.
  2. Inserted vide The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020 dated 05.06.2020. To view the Ordinance, Click Here.
Central Government provides that no application of corporate insolvency resolution process of a corporate debtor shall be initiated for defaults occurring after 25.03.2020 till 25.12.2020 vide its Notification No. S.O. 3265(E) dated 24.09.2020. To view the Notification, Click Here

1.2.7: Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016.

7. Application by corporate applicant.—

(1) A corporate applicant, shall make an application for initiating the corporate insolvency resolution process against a corporate debtor under section 10 of the Code in , accompanied with documents and records required therein and as specified in the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.

  The applicant under sub-rule (1) shall serve a copy of the application to the registered office of the corporate debtor and to the Board, by registered post or speed post or by hand or by electronic means, before filing with the Adjudicating Authority.

(2) The applicant under sub-rule(1) shall dispatch forthwith, a copy of the application filed with the Adjudicating Authority, by registered post or speed post to the registered office of the corporate debtor.

To view the form,Click Here
Substituted vide the Insolvency and Bankruptcy (Application to Adjudicating Authority) (Amendment) Rules, 2020 dated 24.09.2020. To view the Notification, Click Here.

1.2.8: Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016.

8. Withdrawal of application.—

The Adjudicating Authority may permit withdrawal of the application made under rules 4, 6 or 7, as the case may be, on a request made by the applicant before its admission.


1.2.9: Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016.

9. Interim resolution professional.—

(1) The applicant, wherever he is required to propose or proposes to appoint an insolvency resolution professional, shall obtain a written communication in  from the insolvency professional for appointment as an interim resolution professional and enclose it with the application made under rules 4, 6 or 7, as the case may be.

(2) The application under sub-rule (1) shall be accompanied by a certificate confirming the eligibility of the proposed insolvency professional for appointment as a resolution professional in accordance with the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.

To view the form,Click Here

Central Government provides that no application of corporate insolvency resolution process of a corporate debtor shall be initiated for defaults occurring after 25.03.2020 till 25.12.2020 vide its Notification No. S.O. 3265(E) dated 24.09.2020


IBC-Enforcement Notification [S.O.3594(E)] dated 30/11/2016


Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018 dated 06.06.2018 [repealed by the Insolvency and Bankruptcy Code (Second Amendment) Act, 2018 dated 17.08.2018 w.e.f., 06.06.2018]


The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020 dated 05.06.2020


The Insolvency and Bankruptcy Code (Second Amendment) Act, 2018 dated 17.08.2018 w.e.f., 06.06.2018


The Insolvency and Bankruptcy Code (Second Amendment) Act, 2020 dated 23.09.2020


Form 2- IBC (Written Communication by proposed interim resolution professional)

FORM 2

(See sub-rule (1) of rule 9)

(Under rule 9 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016)

WRITTEN COMMUNICATION BY PROPOSED INTERIM RESOLUTION PROFESSIONAL

[Date]

To,

The National Company Law Tribunal

[Address]

From,

[Name and address of the registered office of the proposed interim resolution professional]

In the matter of [name of the corporate debtor]

Subject: Written communication in connection with an application to initiate corporate insolvency resolution process in respect of [name of the corporate debtor]

Madam/Sir,

I, [name of proposed interim resolution professional], an insolvency professional registered with [name of insolvency professional agency] having registration number [registration number] have been proposed as the interim resolution professional by [name of applicant financial creditor] in connection with the proposed corporate insolvency resolution process of [name of the corporate debtor].

In accordance with rule 9 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, I hereby:

(i) agree to accept appointment as the interim resolution professional if an order admitting the present application is passed;

(ii) state that the registration number allotted to me by the Board is [insert registration number] and that I am currently qualified to practice as an insolvency professional;

disclose that I am currently having the following assignments in hand:

Sl. No.Assignment asNumber of ssignment(s)No.Name of corporate debtorDate of
commencement
of process
Expected date of
closure of process
Corporate Processes
1IRP1
2RP2
3Liquidator (including
voluntary liquidations)
3
4Authorised
Representative
Individual Processes
5Resolution Professional
6Bankruptcy Trustee
7Any other

(iii) disclose that I am currently serving as an interim resolution professional / resolution professional / liquidator in [insert number of proceedings] proceedings;

(iv) certify that there are no disciplinary proceedings pending against me with the Board or [name of the insolvency professional agency he is a member of];

(v) affirm that I am eligible to be appointed as a resolution professional in respect of the corporate debtor in accordance with the provisions of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016;

(vi) make the following disclosures in accordance with the code of conduct for insolvency professionals as set out in the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016;

(Signature of the insolvency professional)

(Name in block letters)

(Name of insolvency professional entity, if applicable)

[Optional certification, if required by the applicant making an application under these Rules]

I, hereby, certify that the facts averred by the applicant in the present application are true, accurate and complete and a default has occurred in respect of the relevant corporate debtor. I have reached this conclusion based on the following facts and/or opinion:-

[Please give details].

(Signature of the insolvency professional)

(Name in block letters)

(Name of insolvency professional entity, if applicable)

Substituted vide the Insolvency and Bankruptcy (Application to Adjudicating Authority) (Amendment) Rules, 2020 dated 24.09.2020. To view the Notification, Click Here.

Form 6-IBC (Application by Corporate Applicant)

 

Form 6

(See sub-rule(1) of rule 7)

APPLICATION BY CORPORATE APPLICANT TO INITIATE CORPORATE INSOLVENCY
RESOLUTION PROCESS *UNDER CHAPTER II OF PART II/ UNDER CHAPTER IV OF PART II
OF THE CODE
[*strike out whichever is not applicable]

(Under rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016)

[Date]

To,
The National Company Law Tribunal
[Address]

From,
[Name and address for correspondence of the corporate applicant]
In the matter of [name of the corporate debtor]

Subject: Application to initiate corporate insolvency resolution process in respect of [name of the corporate debtor] under the Code.

Madam/Sir,

We, hereby submit this application to initiate a corporate insolvency resolution process in respect of [name of corporate debtor]. The details for the purpose of this application are set out below:

Part-I

PARTICULARS OF THE CORPORATE APPLICANT
1.NAME ADDRESS, EMAIL ADDRESS, IDENTIFICATION
NUMBER AND ADDRESS FOR COMMUNICATION OF
THE CORPORATE APPLICANT
2.NAME ADDRESS, EMAIL ADDRESS, IDENTIFICATION
NUMBER AND ADDRESS OF THE REGISTERED OFFICE
OF CORPORATE DEBTOR
3.NAMES AND ADDRESSES OF ALL DIRECTORS,
PROMOTERS, DESIGNATED PARTNERS OF THE
CORPORATE DEBTOR (AS APPLICABLE)
4.DATE OF INCORPORATION OF CORPORATE DEBTOR
5.NOMINAL SHARE CAPITAL AND THE PAID-UP SHARE
CAPITAL OF THE CORPORATE DEBTOR AND/OR
DETAILS OF GUARANTEE CLAUSE AS PER
MEMORANDUM OF ASSOCIATION (AS APPLICABLE)
6.NAME, ADDRESS AND AUTHORITY OF PERSON
SUBMITTING APPLICATION ON BEHALF OF
CORPORATE APPLICANT
(ENCLOSE AUTHORISATION)
7.NAME AND ADDRESS OF PERSON RESIDENT IN INDIA
AUTHORISED TO ACCEPT THE SERVICE OF PROCESS
ON ITS BEHALF
(ENCLOSE AUTHORISATION)
8.DOCUMENTATION TO SHOW THAT THE CORPORATE
APPLICANT IS AUTHORISED TO INITIATE THE
CORPORATE INSOLVENCY RESOLUTION PROCESS
9.DETAILS OF THE CORPORATE DEBTOR AS PER THE
NOTIFICATION UNDER SECTION 55 (2) OF THE CODE

(i) ASSETS AND INCOME
(ii) CLASS OF CREDITORS OR AMOUNT OF
DEBT
(iii) CATEGORY OF CORPORATE PERSON
(WHERE APPLICATION IS UNDER CHAPTER
IV OF PART II OF THE CODE). (Inserted vide the Insolvency and Bankruptcy (Application to Adjudicating Authority) Amendment Rules, 2019 dated 14.03.2019)

Part-II

PARTICULARS OF PROPOSED INTERIM RESOLUTION PROFESSIONAL
1.NAME, ADDRESS, EMAIL ADDRESS AND THE
REGISTRATION NUMBER OF THE PROPOSED INTERIM
RESOLUTION PROFESSIONAL

Part-III

PARTICULARS OF FINANCIAL / OPERATIONAL DEBT [CREDITOR WISE, AS APPLICABLE]
1.NAME(S) OF FINANCIAL / OPERATIONAL
CREDITOR(S)
2.ADDRESS OF CORRESPONDENCE OF THE FINANCIAL /
OPERATIONAL CREDITOR(S)
3.TOTAL DEBT RAISED AND AMOUNT IN DEFAULT
4.DATE WHEN THE FINANCIAL / OPERATIONAL DEBT
WAS INCURREDDATE WHEN THE FINANCIAL / OPERATIONAL DEBT
WAS INCURRED
5.PARTICULARS OF SECURITY HELD, IF ANY, THE DATE
OF ITS CREATION, ITS ESTIMATED VALUE AS PER THE
CREDITOR.
ATTACH A COPY OF A CERTIFICATE OF
REGISTRATION OF CHARGE ISSUED BY THE
REGISTRAR OF COMPANIES (IF THE CORPORATE
DEBTOR IS A COMPANY)
6.DETAILS OF RETENTION OF TITLE ARRANGEMENTS
(IF ANY) IN RESPECT OF GOODS TO WHICH THE
OPERATIONAL DEBT REFERS
7.RECORD OF DEFAULT WITH THE INFORMATION
UTILITY, IF ANY
8.LIST OF DOCUMENTS ATTACHED TO THIS
APPLICATION IN ORDER TO PROVE THE EXISTENCE OF
FINANCIAL / OPERATIONAL DEBT AND THE AMOUNT
IN DEFAULT

I, certify that, to the best of my knowledge, [name of proposed insolvency professional], is fully qualified and permitted to act as an insolvency professional in accordance with the Code and the associated rules and regulations.

[Name of the corporate applicant] has paid the requisite fee for this application through [state means of payment] on [date].

Yours sincerely,

Signature of person authorised to act on behalf of the corporate applicant
Name in block letters
Position with or in relation to the corporate applicant
Address of person signing

Instructions

Please attach the following to this application:

Annex I- In case of financial debt, record of default obtained through the information utility or all documents listed in serial number 8 of part –III of this application.

Annex II- In case of operational debt, (i) copy of invoice / demand notice served by an operational creditor on the corporate debtor and (ii) record of default obtained through the information utility or all documents listed in serial number 8 of part-III of this application.

Annex III- Written communication by the proposed interim resolution professional as set out in Form 2 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016.

Annex IV- Copy of the relevant books of accounts of the corporate debtor evidencing the default to creditors.

Annex V- Copies of audited financial statements of the corporate debtor for the last two financial years and the provisional financial statements for the current financial year made upto a date not earlier than fourteen days from the date of the application.

Annex VI -A statement of affairs made up to a date not earlier than fourteen days from the date of application including the following document, namely:-

(a) a list of the corporate debtor’s assets and liabilities, divided into such categories as are appropriate for easy identification, with estimated values assigned to each category;
(b) in the case of any property on which a claim against the corporate debtor is wholly or partly secured, particulars of the claim and its amount, and of how and when the security was created;
(c) the names and addresses of the financial creditors and operational creditors of the corporate debtor, with the amounts due to each of them;
(d) particulars of any debts owed by or to the corporate debtor to or by persons connected with it;
(e) whether any, and if so what, guarantees have been given in relation to the debts of the corporate debtor by other persons, specifying which, if any, of the guarantors is a related party to the corporate debtor and the corporate applicant; and
(f) the names and addresses of the members and partners of the corporate debtor, as the case may be, with details of their respective shareholdings.

Annex VII – A copy of:

(a) relevant extract of any constitutional document or shareholders’ agreement that records the authority of the corporate applicant to make this application, where the corporate applicant is a member or partner of the corporate debtor; or
(b) relevant extract of an employment agreement, constitutional document or fillings made to the Registrar of Companies confirming the authority of the corporate applicant to make this application, where the corporate applicant is an individual in charge of managing the operations and resources of the corporate debtor or has control and supervision over the financial affairs of the corporate debtor.

Annex VIII- Affidavit in support of the application in accordance with the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016.

Annex IX – Proof that the specified application fee has been paid.

Substituted vide the Insolvency and Bankruptcy (Application to Adjudicating Authority) Amendment Rules, 2019 dated 14.03.2019. To view the notification, Click Here

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