Who are entitled and who are not eligible to make application to adjudicating authority for corporate insolvency resolution process as per Insolvency & Bankruptcy Code, 2016?
CS Professional · Corporate Restructuring, Valuation and Insolvency · PYQS · December 2017
Who are entitled and who are not eligible to make application to adjudicating authority for corporate insolvency resolution process as per Insolvency & Bankruptcy Code, 2016?
Answer & Explanation:
An application for initiating Corporate Insolvency Resolution Process can be filed (a) by financial creditor, if there is default in payment of installment or interest; or (b) by an operational creditor for failure to pay the dues for supply of goods, providing services or salary or wages to employees in spite of service of 10 days' notice or (c) by corporate debtor itself in case of occurrence of default in repayment of debt. However, in the following cases no application for Corporate Insolvency Resolution process can be initiated : A corporate debtor undergoing a corporate insolvency resolution process; or A corporate debtor having completed corporate insolvency resolution process twelve months preceding the date of making of the application; or A corporate debtor or a financial creditor who has violated any of the terms of resolution plan which was approved twelve months preceding the date of making application; or A corporate debtor in respect of whom a liquidation order has been passed so that finality of the liquidation order is ensured.
Topics: Insolvency and Bankruptcy Code, 2016
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