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Introduction Insolvency resolution process may be initiated when Company defaults on it's financial obligation. Section 6-11 of Insolvency and Bankruptcy Code(Hereinafter referred as IBC) deals with how to start such process against a Company who defaults on loan. IBC answers details such as who can initiate insolvency resolution process ? What all details needs to be submitted with application for such process ? Who all cannot initiate such process. We will discuss these things under following headings Who can initiate corporate insolvency resolution process ? Initiation by Financial Creditor Initiation by Operational Creditor Initiation by Corporate Applicant (Company itself) Who cannot make application for initiation of insolvency process Before delving to understand the initiation process, you must be familiar with meaning of Corporate Debtor, Financial Creditor and Operation Creditor . Who Can Initiate Corporate Insolvency Resolution Process ? Section 6 of the act provides 3 p...

Introduction We will explain 3 terms in this post Corporate debtor Financial Creditor Operational Creditor Corporate Debtor Corporate Debtor is company which owes money to others like Banks or investor etc. Section 3(8) of the Insolvency and Bankruptcy Code 2016 (Hereinafter referred as IBC) defines the Corporate Debtor as "Corporate Debtor" means a corporate person who owes a debt to any person. Financial Creditor These are banks or financial institution or rich individuals. They give loan and their relationship with Debtor is pure financial contract. " I give you loan, you return me with interest or some additional amount ". That's it. It also includes when loan by such bank is transferred or assigned to other bank or institution. When SBI gives a loan to company, they become Financial Creditor When LIC buys bods of a company, they become Financial Creditor. When you give loan to company when company says they will return you more money, you become financial ...

Introduction Insolvency Resolution Process have two outcome.  Resolution Plan No Resolution Plan In case parties involved in resolution proceedings not arrive at agreeable resolution plan, companies asset will be liquidated and realized amount will be distributed. This whole liquidation process is covered under section 33 to 54. The person who carries this process is liquidator. He could be Resolution Professional who was involved in earlier insolvency resolution proceedings or other person who is appointed under Section 34. This person is conferred with great deal of power. Those powers are enumerated in Section 35 of the IBC. Powers of Liquidator under section 35 to verify claims of all the creditors and consolidate them. to take into his custody or control all the assets, property, effects and actionable claims of the corporate debtor to evaluate the assets and property of the corporate debtor in the manner and prepare a report; to take such measures to ...