How does a Corporate Debtor File Petition For Insolvency Petition

Insolvency and Bankruptcy Code, 2016 is meant to make sure that the Corporate Debtors and Financial/Operational Creditors pay their dues in a fair and efficient manner.

 

Corporate Debtor is a Corporate Applicant

 

Lets before discussing the Filing of Petition by Corporate Debtor, first discuss about what is Corporate Applicant. Corporate Applicant can be referred to any of the following person-

 

1. A Corporate Debtor
2. A Person who is partnered up with the Corporate Debtor who is given right to file for Insolvency Resolution Procedure under the MOA and AOA of the Company.
3. A person who is given the chance of handling the operations and resources of the Corporate Debtor.
4. A person who holds control and supervises the financial operations of the Corporate Debtor.

 

The Process of filing the insolvency Application

 

 

• Filing the Application in the form prescribed under the IBC, 2016-  This form should be prepared and submitted to the Adjudicating Authority along with the Fees of Rs. 25,000/-.

• Along with the Application following documents have to be provided as well-

 

• Information pertaining to the account books for the prescribed period.
• Information pertaining to resolution professional as an Interim resolution professional.
• A resolution that has to be passed by about 3/4th of the Partners/Shareholders of the Company Debtors that approve the Insolvency resolution Professional

3. For initiating the insolvency Resolution Process form 6 has to be filed by the Applicant and the documents and information should be attached along with this.
4. If the Petition is filed for initiating the Insolvency resolution Process (in NCLT), then within 14 days , the authority has either accept and admit the application or reject it. Once the application is admitted then the Insolvency Resolution process begin.
5. If the application suffers from either misInformation or Missing application then the adjudicating authority shall reject the application.
6. If the application is rejected by the adjudicating authority then they will be  given 7 days to correct the errors. If the errors is rectified then after the prescribed period adjudicating authority is going to accept the application. And if not then the application is rejected without any retries.

 

Necessary voting is needed in order to file the application, and the way to submit the application is very easy.