Application for Corporate insolvency resolution under IBC 2016

A Bhiwandi fabric supplier has delivered goods worth several lakh rupees to a company, sent invoices, reminders and finally a notice, and is still unpaid. Suing in a civil court will take years. The Insolvency and Bankruptcy Code 2016 offers another route in which the Tribunal, on proof of default, can start a time-bound process that puts the company under the control of a professional. Who can start it, on what proof, and how do you draft the application so that it is not rejected as incomplete?

In two minutes

An application for corporate insolvency resolution is filed before the National Company Law Tribunal, the Adjudicating Authority, by a financial creditor (s.7), an operational creditor (s.9) or the corporate debtor itself (s.10), on proof of a default of at least one crore rupees (s.4), and the process begins on the date the application is admitted.

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