PR Ltd. has defaulted in making payment to YK Bank for the amount of ₹50,00,000. YK Bank intends to file an application for initiating corporate insolvency resolution process against PR Ltd. Advise YK Bank the procedure

YK Bank is advised to follow the following procedure for initiating corporate insolvency resolution process against PR Ltd.: A financial creditor either by itself or jointly with other financial creditors or any other person on behalf of the financial creditor, as may be notified by Central Government may file an application for initiating corporate insolvency resolution process against a corporate debtor before the Adjudicating Authority when a default has occurred. The financial creditor shall, along with the application furnish - record of the default recorded with the information utility or such other record or evidence of default as may be specified; the name of the resolution professional proposed to act as an interim resolution professional; and any other information as may be specified by the Board. The Adjudicating Authority shall, within fourteen days of the receipt of the application, ascertain the existence of a default from the records of an information utility or on the basis of other evidence furnished by the financial creditor. Where the Adjudicating Authority is satisfied that - a default has occurred and the application is complete, and there is no disciplinary proceedings pending against the proposed resolution professional, it may, by order, admit such application; or default has not occurred or the application is incomplete or any disciplinary proceeding is pending against the proposed resolution professional, it may, by order, reject such application. However, before rejecting the application, the Adjudicating Authority shall give a notice to the applicant to rectify the defect in his application within seven days of receipt of such notice. The corporate insolvency resolution process shall commence from the date of admission of the application. The Adjudicating Authority shall communicate the order to the financial creditors and the corporate debtor within seven days of admission or rejection of such application, as the case may be.