Section 10 The Insolvency and Bankruptcy Code, 2016

Initiation of corporate insolvency resolution process by corporate applicant

(1) Where a corporate debtor has committed a default, a corporate applicant thereof may file an application for initiating corporate insolvency resolution process with the Adjudicating Authority.

(2) The application under sub-section (1) shall be filed in such form, containing such particulars and in such manner and accompanied with such fee as may be prescribed.

1[(3) The corporate applicant shall, along with the application, furnish-

(a) the information relating to its books of account and such other documents for such period as may be specified;

(b) the information relating to the resolution proposed to be appointed as an interim resolution professional; and

(c) the special resolution passed by shareholders of the corporate debtor or the resolution passed by at least three-fourth of the total number of partners of the corporate debtor, as the case may be, approving filing of the application.]

(4) The Adjudicating Authority shall, within a period of fourteen days of the receipt of the application, by an order-

(a) admit the application, if it is complete 2[and no disciplinary proceeding is pending against the proposed resolution professional]; or

(b) reject the application, if it is incomplete 3[or any disciplinary proceeding is pending against the proposed resolution professional]:

Provided that Adjudicating Authority shall, before rejecting an application, give a notice to the applicant to rectify the defects in his application within seven days from the date of receipt of such notice from the Adjudicating Authority.

(5) The corporate insolvency resolution process shall commence from the date of admission of the application under sub-section (4) of this section.

 

Amendment

1. 1 Ins. by Act No. 26 of 2018, sec. 7(a) (w.e.f. 6-6-2018), before substitution the sub clause 3, stood as under – “(3). The corporate applicant shall, along with the application furnished the information relating to – (a) its books of account and such other documents relating to such period as may be specified; and (b)the resolution professional proposed to be appointed as an interim resolution professional.”

2. 2 Ins. by Act No. 26 of 2018, sec. 7(b) (i) (w.e.f. 6-6-2018).

3. 3 Ins. by Act No. 26 of 2018, sec. 7(b) (ii) (w.e.f. 6-6-2018).