Who is an applicant under section 7 of IBC?
(1) A financial creditor either by itself or jointly with other financial creditors other financial creditors, or any other person on behalf of the financial creditor, as may be notified by the Central Government,may file an application for initiating corporate insolvency resolution process against a corporate debtor ….
Who can file for insolvency under IBC 2016?
While sections 7 and 9 of the Insolvency and Bankruptcy Code, 2016 (‘the Code’), allow creditors of a defaulting company to apply for rendering the company insolvent, Section 10 provides the defaulting company itself, the right to approach the adjudicating authority i.e. National Company Law Tribunal to declare it …
Who can initiate proceedings under IBC?
Initiation of Insolvency Proceedings. Section 6 of the Code provides that a financial creditor, operational creditor, or a corporate debtor itself can initiate insolvency proceedings upon any default made by the corporate debtor.
What is the minimum and maximum period of moratorium under IBC 2016?
Under Section 74 of the IBC, officials of the corporate debtor who violate provisions of moratorium can be imprisoned for a minimum of three years, which may be extended up to five years. Such officials will also be fined a minimum of Rs 100,000 but not more than Rs 300,000.
How is voluntary liquidation of a company commenced?
On receipt of the required approval, the voluntary liquidation process shall be deemed to commence from the date on which special resolution is passed by the members along with the approval of creditors. From the liquidation commencement date, the corporate person shall cease to carry on the business.
What are the stages of IBC approach?
The IBC envisages resolution of such corporate insolvencies in a two-stage procedure. The first stage being the corporate insolvency resolution process (“CIRP”) and the second being the liquidation process.