Question

    Under the Insolvency and Bankruptcy Code, 2016, who is

    responsible for initiating the Corporate Insolvency Resolution Process (CIRP) for a defaulting company?
    A The Insolvency and Bankruptcy Board of India (IBBI) Correct Answer Incorrect Answer
    B The creditors or the debtor themselves Correct Answer Incorrect Answer
    C The National Company Law Tribunal (NCLT) Correct Answer Incorrect Answer
    D The Ministry of Corporate Affairs Correct Answer Incorrect Answer
    E The Reserve Bank of India Correct Answer Incorrect Answer

    Solution

    As per Section 6 of the Insolvency and Bankruptcy Code, 2016, the Corporate Insolvency Resolution Process (CIRP) can be initiated by: • The corporate debtor (the company itself), or • The financial creditor, or • The operational creditor, by filing an application before the National Company Law Tribunal (NCLT), when a default has occurred. The NCLT then adjudicates on the application and, if satisfied, admits the case and initiates CIRP.

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