BSC Bank filed an application for initiating Corporate Insolvency Resolution Process (CIRP) against one of its borrower company M/s Moon Storm Pvt. Ltd., in the National Company Law Tribunal (NCLT). The NCLT allowed the

Section 55 of the Insolvency and Bankruptcy Code, 2016 deals with the Fast track corporate insolvency resolution process. According to Section 55 a Corporate Insolvency Resolution process carried out in accordance with this Chapter IV of Part II of the Code be called as fast track corporate insolvency resolution process. An application for fast tract corporate insolvency resolution process may be made in respect of the following corporate debtors, namely: a corporate debtor with assets and income below a level as may be notified by the Central Government: or a corporate debtor with such class of creditors or such amount of debt as may be notified by the Central Government, or Such other category of corporate persons as may be notified by the Central Government. Section 57 of the Insolvency and Bankruptcy Code, 2016 deals with the manner of initiating fast track corporate insolvency resolution process. An application for fast track corporate insolvency resolution process may be filed by a creditor or corporate debtor as the case may be, along with- (a) the proof of the existence of default as evidenced by records available with an information utility or such other means as may be specified by the Board; and (b) such other information as may be specified by the Board to establish that the corporate debtor is eligible for fast track corporate insolvency resolution process. Manner of initiating fast track corporate insolvency resolution process. The given case is similar to Sanjay Kumar Ruia v. Catholic Syrian Bank Ltd. & Anr. (Company Appeal (AT) (Insolvency) No. 560 of 2018) where it was held that the NCLT cannot exercise its power under sub-section (2) of Section 55 of the Code, which was not applicable, and therefore the Adjudicating Authority has no power to convert the 'Corporate Insolvency Resolution Process' into a 'Fast Track Corporate Insolvency Resolution Process' under Section 55 of the Code. Section 55 of the Code clarifies that Fast Track CIRP is only limited to certain class of corporate Debtor. In the present case, the application itself was not filed under Section 55 but filed under Section 7 of the Insolvency and Bankruptcy Code, 2016. Therefore, Section 55 of the Insolvency and Bankruptcy Code, 2016 may not be invoked by NCLT against the Corporate Debtor i.e. NCLT will not have any power or Jurisdiction to convert the CIRP initiated under Section 7, 9 or 10 of IBC as a Fast Track Insolvency Resolution Process under Section 55 of the IBC.