Sunrise Infra Ltd. has defaulted on a term loan of ₹25 crore availed from Northern Bank. The bank, as a financial creditor, files an application to initiate the corporate insolvency resolution process. Under the Insolvency and Bankruptcy Code 2016, such an application is filed under which provision and before which forum?

Under the Insolvency and Bankruptcy Code 2016, a financial creditor may initiate the corporate insolvency resolution process against a corporate debtor by filing an application under Section 7 before the National Company Law Tribunal. Section 5(7) defines a financial creditor as a person to whom a financial debt is owed, and Section 5(8) defines a financial debt as a debt along with interest payable on money borrowed, which includes a term loan disbursed by a bank. In contrast, an operational creditor approaches the tribunal under Section 9 after serving a ten-day demand notice, and a corporate debtor may initiate the process voluntarily under Section 10. Since Northern Bank advanced a term loan, its application correctly lies under Section 7 before the NCLT.