Will your answer differ, if the SFL has not defaulted in servicing the credit facility granted by the A-One Bank but still want to initiate the CIRP ?

Section 10(1) of the Insolvency and Bankruptcy Code, 2016 states that 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. Therefore, there is a pre-condition that the corporate debtor has committed default in servicing the credit facility to the A-One Bank. If the SFL had not defaulted in servicing the credit facility to the Bank, it would not be eligible to initiate CIRP merely on its own volition. However, in the given case, the default is specifically in respect of the term loan of ₹ 10 crore, which clearly meets the statutory threshold of ₹ 1 crore under Section 4 of the Code. The fact that the cash credit facility of ₹ 2 crore has not been defaulted upon is immaterial, since the Code requires default in any debt, not necessarily all debts.