Section 11 The Insolvency and Bankruptcy Code, 2016

Persons not entitled to make application

The following persons shall not be entitled to make an application to initiate corporate insolvency resolution process under this Chapter, namely: –

(a) a corporate debtor undergoing a corporate insolvency resolution process ¹[or a pre-packaged insolvency resolution process]; or

²[(aa) a financial creditor or an operational creditor of a corporate debtor undergoing a pre-packaged insolvency resolution process; or];

(b) a corporate debtor having completed corporate insolvency resolution process twelve months preceding the date of making of the application; or

³[(ba) a corporate debtor in respect of whom a resolution plan has been approved under Chapter III-A, twelve months preceding the date of making of the application; or]

(c) a corporate debtor or a financial creditor who has violated any of the terms of resolution plan which was approved twelve months before the date of making of an application under this Chapter; or

(d) a corporate debtor in respect of whom a liquidation order has been made.

Explanation. ⁴[I]– For the purposes of this section, a corporate debtor includes a corporate applicant in respect of such corporate debtor.

⁵[Explanation II.- For the purposes of this section, it is hereby clarified that nothing in this section shall prevent a corporate debtor referred to in clauses (a) to (d) from initiating corporate insolvency resolution process against another corporate debtor.]

Amendment

¹ Ins. by Act No. 26 of 2021, sec.4(i) (w.e.f. 04-04-2021).

² Ins. by Act No. 26 of 2021, sec.4(ii) (w.e.f. 04-04-2021).

³ Ins. by Act No. 26 of 2021, sec.4(iii) (w.e.f. 04-04-2021).

⁴ Ins. by Act No. 1 of 2020, sec.4 (w.e.f. 28-12-2019).

⁵ Ins. by Act No. 1 of 2020, sec.4 (w.e.f. 28-12-2019).