RKG Infrastructure Ltd. were incurring continuous losses and its financial position went bad to worse. Now, Company is undergoing a corporate insolvency resolution process. Dinesh who is one of the senior employees of th

Insolvency resolution process may be initiated under Insolvency and Bankruptcy Code (IBC), 2016 for the matters relating to Insolvency and Liquidation of Corporate debtors where the minimum amount of default is one lakh rupees, a financial creditor, an operational creditor or the corporate debtor itself may initiate Corporate Insolvency Resolution Process A financial creditor either by itself or jointly with other financial creditors may file an application for initiating corporate insolvency resolution process against a corporate debtor before the Adjudicating Authority when a default has occurred. An operational creditor is defined under Section 5(20) of the Insolvency and Bankruptcy Code, 2016 - to mean "any person to whom an operational debt is owed and includes any person to whom such debt has been legally assigned or transferred". In order to ascertain whether a person would fall within the definition of an operational creditor, the debt owed to such a person must fall within the definition of an operational debt as defined under Section 5(21) of the IBC. As per the facts and definition under IBC, Dinesh is an operational creditor, in respect of such corporate debtor who is undergoing a corporate insolvency resolution process. So, he shall be entitled to make an application to initiate corporate insolvency resolution process.