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What documents do you need to prepare an application under section 10 of IBC? How does this process differ from insolvency proceedings initiated by financial creditors and operational creditors? Are all corporate persons eligible to file the applications? If you are looking for answers to such questions, you have arrived at the right place! Whether you’re a business owner, legal professional, chartered accountant, company secretary, or cost accountant, we’ve got you covered. 

Introduction

We all are aware of the insolvency of Go First (formerly GoAir), as it created significant buzz in India’s corporate and aviation business sectors. 

Why was there so much hype around the Go First insolvency? 

Was this insolvency any different from other insolvency cases?

If yes, how?  

This was owing to several reasons. One crucial reason was that unlike its industry counterpart Jet Airways, which was forced into insolvency due to creditors’ petitions, Go First voluntarily filed for insolvency.

This marked the first instance of a major airline in India voluntarily opting for the Corporate Insolvency Resolution Process (“CIRP” for short) under the Insolvency and Bankruptcy Code, 2016 (“IBC” for short).

Another interesting aspect that made this case a landmark was when the National Company Law Tribunal (“the NCLT” for short) admitted the insolvency petition and declared a moratorium, protecting Go First from creditors, including aircraft lessors and lenders. This sparked courtroom battles between lessors (who wanted to repossess aircraft) and the airline.

Besides Go First, Indosolar Limited and Rolta India Limited also adopted the same path by opting for voluntary CIRP. 

Now, what does it mean when I say that the aforementioned companies voluntarily filed for insolvency?

Take a cursory glance.  

As we know, the Insolvency and Bankruptcy Code, 2016 (“the IBC” for short) was enacted to establish a comprehensive framework for the efficient resolution of insolvency and bankruptcy cases.

A significant provision under the IBC is section 10, which enables a corporate debtor to voluntarily initiate insolvency proceedings when it cannot meet its debt obligations. This provision serves as a crucial mechanism for corporate entities to either restructure their operations or undergo a systematic liquidation process.

In this article, we will learn about voluntary insolvency, the process of drafting a petition, the procedure for filing it, and other key aspects.

What does section 10 of the IBC entail? 

Let’s break down the provision for a better understanding. 

1. Voluntary Initiation of Insolvency Proceedings: Unlike sections 7 and 9, where creditors initiate insolvency proceedings, section 10 enables the corporate debtor itself to file for insolvency if it has defaulted on its financial obligations.
2. Application to the NCLT: The corporate debtor must apply to the NCLT to initiate the CIRP. 
3. Documents Required: The application must be filed along with:

• A special resolution passed by the shareholders of the company or the resolution passed by at least three-fourths of the total number of partners of the corporate debtor, as the case may be, approving the filing of the application;
• The information relating to its books of accounts
• Information on the resolution professional proposed to be appointed. 

4. The NCLT shall within 14 days of the receipt of the application, order to- 

• admit the application if it is complete in all respects and no disciplinary proceeding is pending against the proposed resolution professional; or 
• reject the application if it is incomplete or any disciplinary proceeding is pending against the proposed resolution professional. 
• However, before rejecting the application, the corporate applicant shall be given a window of 7 (seven) days to rectify the defects from the date of receipt of the notice. 

Eligibility criteria to apply 

The provisions of IBC shall apply to— 

1. When the minimum amount of default is 1 crore. 
2. Any company established under the Companies Act, 2013 or any preceding company legislation; 
3. Any other company regulated by a special law currently in force;
4. Any Limited Liability Partnership (LLP) registered under the Limited Liability Partnership Act, 2008; 
5. Any other incorporated entity governed by existing laws, as may be specified by the Central Government through notification;
6. Personal guarantors to corporate debtors;
7. Partnership firms and sole proprietorship firms; 
8. Individuals, except those covered under a specific clause, 

in connection with their insolvency, liquidation, voluntary liquidation, or bankruptcy, as applicable. 

Who cannot initiate CIRP 

The following entities are ineligible to apply for initiating CIRP:

1. A corporate debtor already undergoing CIRP or a pre-packaged insolvency resolution process.
2. A financial creditor or an operational creditor of a corporate debtor undergoing a pre-packaged insolvency resolution process.
3. A corporate debtor that has completed CIRP within the past 12 months from the date of application.
4. A corporate debtor for whom a resolution plan under Chapter III-A was approved within the past 12 months from the date of application. A corporate debtor or financial creditor who has violated the terms of an approved resolution plan within the past 12 months before applying.
5. A corporate debtor against whom a liquidation order has already been passed.

Key terms

Wait, I think you will repeatedly come across words such as corporate debtor, financial debtor, operational debtor, interim resolution professional, etc. And if you are not clear on these concepts, this process of learning may not be as enjoyable for you as it should be. 

Now let’s learn these terms conceptually and NOT THEORITICALLY. 

For this, I am taking an example. 

Broke Industries Ltd., a company registered under the Companies Act, 1956 is involved in the business of sugar manufacturing. This company regularly procures raw sugarcane from its approved trader mainly M/s. Honest Sweetcane and several other traders. To further expand the business and towards its working capital, the company took a consolidated loan of Rs. 22 crores from PaisaLo Bank Ltd.  

Unfortunately, the expansion did not go as planned and thus the company started to default in making repayment of the loan. Not only this, but the company was also unable to clear outstanding invoices of M/s. Honest Sweetcane to the tune of Rs. 20 lakhs, of other traders to the tune of Rs. 25 lakhs (consolidated) and rental dues of land, plant and machinery together amounting to Rs. 97 lakhs. 

Shall we now begin to identify who’s who from the aforesaid example?

Since Broke Industries Ltd. has outstanding debts towards M/s. Honest Sweetcane and PaisaLo Bank Ltd., it becomes a corporate debtor.

Corporate debtor’s loan from PaisaLo Bank Bank Ltd. shall qualify as a financial debt because the loan was furnished for expansion and meeting its working capital needs by a scheduled bank and against payment of interest. This makes PaisaLo Bank Ltd. as its financial creditor. 

The outstanding dues to M/s. Honest Sweetcane and other traders, rent payable for land and plant & machinery, qualify as operational debt. This is because they arise from routine business expenses. This makes the traders and the landlord its operational creditor. 

Now who is a resolution professional?

You’re probably familiar with the role of a company’s board of directors—they oversee day-to-day operations, ensure smooth business functioning and make key decisions.

But what happens when a company enters insolvency? That’s where a resolution professional (RP) steps in. The RP essentially takes over the responsibilities of the board of directors, ensuring the company’s affairs are managed as per the insolvency resolution process. Besides this, the RP is responsible for verifying creditor claims, assessing the company’s outstanding debt, forming the Committee of Creditors (CoC) and facilitating the resolution process. 

Before NCLT confirms the appointment of RP,  they are referred to as an interim resolution professional (IRP). Till such time, the IRP holds temporary charge of the process.

What are the details to be put in the application 

Let’s move to the most crucial part. 

What are the ingredients of this application? 

To learn this, let’s take a look at the facts of the case at hand. 

M/s Homestay Realty Private Limited (hereinafter referred to as Petitioner/Corporate Applicant) is a private limited company incorporated on 12.03.2012, having CIN: U70200MH2012PTC091055. The registered office of the company is situated at SEEPZ, Andheri (east), Mumbai. The authorized capital of the corporate applicant is Rs. 10,00,000/-. The paid-up capital is Rs 4,10,000/-. The corporate applicant is engaged in the business of real estate. 

It is submitted that the Company is engaged in renting residential premises for use as a residence and allied activities including property maintenance. Further, in the course of its business, the company had collected deposit amounts from its customers as security deposits. Owing to the dissatisfaction of the customers towards the services provided by the Company, several customers have expressed their wish to terminate the contract. It is submitted that due to a cash crunch, the company has been unable to refund security deposits.

Moreover, various cheques were issued by the corporate debtor towards creditors which were dishonoured and there were several cases filed against the company under the provisions of the Negotiable Instruments Act, 1881.

It is submitted that the corporate applicant has defaulted in payment towards the salary of employees and other services. The Corporate Applicant owes amounts to the statutory authorities under various laws and also has amounts due to be paid by the corporate applicant towards unsecured loans taken from the directors and also from other parties as detailed in the latest financial statements.

It is submitted that because the company is not able to carry out its business its resources are not sufficient for discharging its liabilities and the company is not in a position to run as a going entity. Further, the company has multiple debts to pay various creditors. 

The company owes an amount of Rs. 20,00,00,000/- to operational creditors, financial creditors and also statutory liabilities. The details of financial/operational debts are attached as Schedule I and the details of statutory liabilities are attached as Schedule II to the Petition. 

In the above circumstance, the Corporate Applicant has applied before this Tribunal to initiate proceedings under section 10 of the IBC, 2016 for commencing the Corporate Insolvency Resolution Process. 

What needs to be filed along with the application? 

Have a look at the necessary components of a paper-form book. 

1. Index
2. Memo of Parties 
3. Synopsis 
4. List of Dates and Events  
5. Application under section 10 of IBC
6. Exhibits (List of shareholders of corporate applicant, certificate of incorporation of corporate applicant, Board resolution authorising to apply on behalf of corporate applicant, list of financial creditors, etc.)
7. Affidavit in support
8. Affidavit of proof of service to the Insolvency and Bankruptcy Board
9. Affidavit verifying the fact that the corporate applicant does not suffer from any disqualification under section 11 of IBC
10. Vakalatnama

Here’s a format. The explanation part shall be in red.

BEFORE THE NATIONAL COMPANY LAW TRIBUNAL        

MUMBAI BENCH 

          COMPANY PETITION (I.B.) No. 65 of 2025

(UNDER SECTION 10 OF THE INSOLVENCY AND BANKRUPTCY CODE, 2016)

        FORM 6

     (See sub-rule (1) of Rule 7)

APPLICATION BY CORPORATE APPLICANT TO INITIATE CORPORATE INSOLVENCY RESOLUTION PROCESS UNDER CHAPTER II OF PART OF THE CODE 

[Under Rule 7 of insolvency and bankruptcy (Application to Adjudicating Authority) Rules, 2016]

Date: March 28, 2024 

Explanation- As we are aware this application is voluntarily filed by the corporate debtor itself and is neither instituted by nor directed against any party. Therefore, no party shall be arrayed as the respondent in this case. So the application is more like a letter to the NCLT. 

To,

The National Company Law Tribunal, Mumbai Bench,

MTNL Telecom Building,

Opp. G. D. Somani School, Somani Marg,

Cuffee Parade, Mumbai — 400005

From: 

M/s Homestay Realty Private Limited 

Registered office at: SEEPZ, 

Andheri (east), Mumbai. 

In the matter of M/s. Homestay Realty Private Limited 

Subject: Application to initiate the corporate insolvency resolution process in respect of M/s. Homestay Realty Pvt. Ltd. under Section 10 of the Insolvency and Bankruptcy Code, 2016 (‘IBC’)

Sir, 

We hereby submit this application to initiate the corporate insolvency resolution process in respect of M/s. Homestay Realty Private Limited (hereinafter referred to as “Corporate Applicant”).

The details for the purpose of this application are set out below:

    PART-I

Explanation- In this part of the application, the Corporate Applicant shall give out pertinent information such as its full name, address, CIN, email ID of the company and its directors and promoters, and details about the share capital. This information shall also be supported by various documents such as board resolutions, special resolution, MGT-14 form, etc. 

For those who are not aware, MGT-14 is a form prescribed under the Companies Act, 2013, which is used in filing certain resolutions and agreements with the Registrar of Companies. 

Sr. No.	Particulars of the Corporate Applicant
1.	NAME, ADDRESS, EMAILADDRESS,IDENTIFICATIONNUMBER ANDADDRESS FORCOMMUNICATIONOF THE CORPORATEAPPLICANT	Name: M/s. Homestay Realty Pvt. Ltd. Address: SEEPZ, Andheri (east), Mumbai- 400 107Email: [email protected] Corporate Identification Number: U70200MH2012PTC091055
2.	NAME, ADDRESS, EMAILADDRESS,IDENTIFICATIONNUMBER ANDADDRESS OF THEREGISTEREDOFFICE OF THECORPORATEDEBTOR (ASAPPLICABLE)	Name: M/s. Homestay Realty Pvt. Ltd. Address: SEEPZ, Andheri (East), Mumbai- 400 107Email: [email protected] Corporate Identification Number: U70200MH2012PTC091055
3.	NAMES ANDADDRESSES OF ALLDIRECTORS,PROMOTERS,DESIGNATEDPARTNERS OF THECORPORATEDEBTOR (ASAPPLICABLE)	Name: Mr. Krishna K. Designation: DirectorDIN: 00329239Address: Flat-403 KasturiPark Plot-39 Sec-20Sanpada, Navi Mumbai,410210 2. Name: Mrs. Krishnamurthy ReddiarDesignation: DirectorDIN: 00329379Address: Flat-404 KasturiPark Plot-39 Sec-20Nerul, Navi Mumbai,410210 The above-mentioned directors arethe promoters of the CorporateApplicant/ Corporate Debtor. The List of Shareholders ofthe corporate Applicant is annexed andmarked as Annexure A1.
4.	DATE OF INCORPORATION OF CORPORATE DEBTOR	The Corporate Debtor was incorporated on March 30th, 2012.  The Certificate of Incorporation ofthe Corporate Applicant is enclosedas Annexure A2.
5.	NOMINAL SHARECAPITAL AND PAID-UPSHARE CAPITALOF THE CORPORATEDEBTOR AND/ORDETAILS OFGUARANTEECLAUSE AS PERMEMORANDUM OFASSOCIATION (ASAPPLICABLE)	Nominal Share CapitalEquity Share Capital: Rs. 10,00,000(1,00,000 equity shares of Rs. 10each) Paid-Up Equity Share CapitalPaid-up Share Capital: Rs. 4,10,000(41,000 equity shares of Rs. 10 each) Extract of Master Data as perMinistry of Corporate Affairs andcopy of the Memorandum and Articles ofAssociation is enclosed as AnnexureA3.
6.	NAME, ADDRESSAND THE AUTHORITY OFPERSONSUBMITTINGAPPLICATION ONBEHALF OFCORPORATEAPPLICANT (ENCLOSEAUTHORIZATION)	Name: Mr. Krishna K. Designation: Director DIN: 00329239Address: Flat-403 Kasturi Park Plot-39 Sec-20Kharghar, Navi Mumbai,410210Email ID- [email protected] Designation: Director A copy of the resolution passed by the Board of Directors authorising the person to submit the Application on behalf of the Corporate Applicant is enclosed as Annexure A4.
7.	NAME ANDADDRESS OF THEPERSON RESIDENTIN INDIAAUTHORISED TOACCEPT THESERVICE OFPROCESS IN ITSBEHALF(ENCLOSEAUTHORIZATION)	Name: Mr. Krishna K. Designation: DirectorDIN: 00329239Address: Flat-403 KasturiPark Plot-39 Sec-20Kharghar, Navi Mumbai,410210Email ID- [email protected] Designation: Director A copy of the resolution passed bythe Board of Directors authorisingthe person to submit the Applicationon behalf of the Corporate Applicant,is enclosed as Annexure A4.
8.	DOCUMENTATIONTO SHOW THAT THECORPORATEAPPLICANT ISAUTHORISED TOINITIATECORPORATEINSOLVENCY	Copy of special resolution passed by the shareholders of Corporate Applicant at their Extra-Ordinary General Meeting held on March 20,2024 approving to initiate CIRP under Section 10 of the IBC along withMGT-14 filed with Registrar of Companies with the payment challan is enclosed as AnnexureA5 (Colly.)
8.	DETAILS OF THECORPORATEDEBTOR AS PERTHE NOTIFICATIONUNDER SECTION 55(2) OF THE CODE:-(i) ASSET ANDINCOME(ii) CLASS OFCREDITORs ORAMOUNT OFDEBTCATEGORY OFCORPORATEPERSON (WHEREAPPLICATION ISUNDER CHAPTER IVOF THE PART II OFTHE CODE)	N.A

   PART II

Explanation- This part shall consist of details about the proposed interim resolution professional that is his name, address, and registration number allotted by the Insolvency and Bankruptcy Board of India.   

PARTICULARS OF THE PROPOSED INTERIM RESOLUTION PROFESSIONAL
1.	NAME, ADDRESS, EMAILADDRESS AND THEREGISTRATION NUMBEROF THE PROPOSEDINTERIM RESOLUTIONPROFESSIONAL	Name: S. Shankaran Address: 1203, The Nilkanth CHS, Ghatkopar(East), Mumbai, Maharashtra — 400077E-mail: [email protected] No.: [insert the IRP’s registration number]  The written consent of the Insolvency Professional inForm-2, to act as Interim Resolution Professional of the Corporate Applicant along with the copy of Authorisation for Assignment(“AFA”) and IBBI registration certificate is enclosed as Annexure A6 (Colly.).

Explanation- This part shall contain particulars of the financial debt, such as the name of financial creditors, address of correspondence, total debt raised, particulars of security, etc. 

PARTICULARS OF THE FINANCIAL DEBT
1.	NAME(S) OF FINANCIALCREDITOR(S)	The list of financialcreditors of the CorporateApplicant is annexed andmarked as Annexure -A7
2.	ADDRESS OFCORRESPONDENCE OF THEFINANCIAL CREDITOR(S)	The details of addresscorrespondence of thefinancial creditors ofCorporate Applicantannexed and marked asAnnexure -A7
3.	TOTAL DEBT RAISED ANDAMOUNT IN DEFAULT	Total Debt Raised:As on March 20, 2024, theCorporate Applicant hasraised a total of FinancialDebt amounting to INR26,18,21,499/-(RupeesTwenty Six Crore EighteenLakh Twenty one Thousandfour Hundred Ninety Nineonly)Amount of Default:As on March 20, 2024, theCorporate Applicant has defaulted in payment of INR16,40,38,766/- (RupeesSixteen Crore Forty LakhsThirty-Eight Thousand SevenHundred Sixty—Six Only).The details of total debtraised and amount indefault is annexed andmarked as Annexure -A7.
4.	DATE WHEN THE FINANCIALDEBT WAS INCURRED	The details of FinancialCreditors along with thedate on which the said loanwas incurred is annexedand marked as Annexure -A7.
5.	PARTICULARS OF SECURITYHELD, IF ANY, THE DATE OFITS CREATION, ITSESTIMATED VALUE AS PERTHE CREDITORS.ATTACH COPY OF ACERTIFICATE OFREGISTRATION OF CHARGEISSUED BY THE REGISTRAROF COMPANIES (IF THE CORPORATE DEBTOR IS ACOMPANY)	The details of charges‘created by the CorporateApplicant along with theCertificate of Registration ofCharge issued by theRegistrar of Companies ismarked and annexed asAnnexure -A8 (Colly.)
6.	DETAILS OF RETENTION OFTITLED ARRANGEMENTS (IFANY) IN RESPECT OF GOODSTO WHICH THEOPERATIONAL DEBTREFERS	Not Applicable
7.	LIST OF DOCUMENTSATTACHED TO THISAPPLICATION IN ORDER TOPROVE THE EXISTENCE OFFINANCIAL DEBT AND THEAMOUNT OF DEFAULT.	(a) Copy of Loan Sanction Letter given by thefinancial creditor M/ sADBI Bank Limited,annexed and marked asAnnexure -A9 (b) A copy of Audited Financial Statements ofCorporate Applicant forthe financial year endedon 31.08.2022, isannexed and marked asAnnexure A10.  (c) A copy of Audited Financial Statements of Corporate Applicant for the financial year ended on 31.03.2023 is annexed and marked as Annexure A11.  d) A Copy of ProvisionalFinancial Statements ofCorporate Applicant ason 20.03.2024, for thecurrent financial yearmade up to a date notearlier than fourteendays from the date of theapplication is annexedand marked asAnnexure A12. e) A statement of assetsand liabilities of theCorporate Applicant ason 20.03.2024 isannexed and marked asAnnexure A13.  f) Demand Notice alongwith NPA notice(including possessionnotice) sent by thefinancial creditor Bharat Bank Limited is marked and annexed as Annexure A14.

Explanation- This table shall contain particulars of the operational debt, namely of the operational creditor, address of correspondence of operational debtor, total debt raised and amount in default, particulars of security held, etc. 

PARTICULARS OF THE OPERATIONAL DEBT
1.	NAME(S) OF OPERATIONAL CREDITOR(S)	The List of OperationalCreditors (including but notlimited to miscellaneousservice providers,employees, auditors,advisors/professionalsetc.) of the CorporateApplicant is annexed andmarked as Annexure A15.
2.	ADDRESS OFCORRESPONDENCE OF THEOPERATIONAL CREDITOR(S)	The details of addresscorrespondence of theOperational creditors ofCorporate Applicantannexed and marked asAnnexure -A16.
3.	TOTAL DEBT RAISED ANDAMOUNT IN DEFAULT	The details of total debtraised and amount indefault for OperationalCreditors is annexed andmarked as Annexure-A17.
4.	DATE WHEN THE OPERATIONAL DEBT WAS INCURRED	The details of the Operational Creditors are annexed and and marked as Annexure –A18
5.	PARTICULARS OF SECURITYHELD, IF ANY, THE DATE OFITS CREATION, ITSESTIMATED VALUE AS PERTHE CREDITORS.ATTACH COPY OF ACERTIFICATE OFREGISTRATION OF CHARGEISSUED BY THE REGISTRAROF COMPANIES (IF THE CORPORATE DEBTOR IS ACOMPANY)	N.A
6.	DETAILS OF RETENTION OFTITLED ARRANGEMENTS (IFANY) IN RESPECT OF GOODSTO WHICH THEOPERATIONAL DEBTREFERS	Not Applicable
7.	LIST OF DOCUMENTSATTACHED TO THISAPPLICATION IN ORDER TOPROVE THE EXISTENCE OFOPERATIONAL DEBT AND THEAMOUNT OF DEFAULT.	(a) A copy of ledgeraccounts of theCorporate Applicant on 20.03.2024 is annexed and marked as Annexure A16. A copy of AuditedFinancial Statements ofCorporate Applicant forthe financial year endedon 31.03.2022, isannexed and marked asAnnexure A10. A Copy of AuditedFinancial Statements ofCorporate Applicant forthe financial year endedon 31.03.2023 isannexed and marked asAnnexure A11. A Copy of ProvisionalFinancial Statements ofCorporate Applicant ason 20.03.2024, for thecurrent financial yearmade up to a date notearlier than fourteendays from the date of theapplication is annexed and marked as Annexure 12.

I, Mr. Krishna K., certify that, to the best of its knowledge, Mr. S. Shankaran, is fully qualified and permitted to act as an Insolvency Professional in accordance with the Code and the associated rules and regulations.

A copy of written consent of Interim Resolution Professional (IRP) in Form-2 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 is annexed and marked as Annexure A6 (Colly.).

A copy of Form MGT-14, along with MCA Receipt for passing of Special Resolution approving filing of the application under Section 10 of the Insolvency and Bankruptcy Code, 2016 at an Extra-Ordinary General Meeting is annexed and marked as Annexure A5(Colly.).

The Corporate Applicant has paid the requisite fee for this application through electronic mode on ……………., and a copy of this application has been served by registered post/ speed post/ by hand / electronic means to the Board.

Yours sincerely,

NAME AND SIGNATURE OF THE AUTHORIZED SIGNATORY 

Signature of person authorised to act on behalf of the Corporate Applicant	Sd/-
Name in block letters	Mr. K. Krishnan

Prayer clause 

You might wonder where the prayer clause is in the said application.  

Since this application is more of a formal letter, so if you carefully read at the start of the application, we have already mentioned what are we seeking out of this application. Thus, nothing specifically needs to be mentioned. 

Drafting of ancillary documents 

Your ancillary documents to the petition namely memo of parties, synopsis, list of dates and events and affidavit of verification can be drafted using suggested drafts given in my article on “How to apply for relief against oppression”.  

Key steps to resolve insolvency 

Above, we have seen how the CIRP is initiated by a corporate applicant. Now, let’s see what happens once the application is admitted and the insolvency process has commenced. 

It is understood that the process can’t go on forever. I mean, if that happens, it would defeat the very purpose of this legislation. Therefore, IBC prescribes a time limit of a maximum of 330 days from the date of admission of the application to initiate such a process. 

Below are the key steps undertaken by NCLT to adjudicate the application: 

1. Declaration of moratorium

Once the application is admitted, the moratorium is declared. During the moratorium period- 

• The initiation or continuation of any suits or cases against the corporate debtor is prohibited.
• The corporate debtor cannot sell, lease, or dispose of its assets.
• Creditors cannot enforce security interests, such as mortgages or liens.
• Lenders cannot recover or repossess assets or property of the corporate debtor.
• Critical services like electricity and water supply cannot be discontinued. 

2. An Interim Resolution Professional (IRP) is appointed to take charge of the corporate debtor and take control of the management and assets of the corporate debtor.
3. Immediately after the appointment of IRP, make a public announcement of the initiation of CIRP and call for submission of claims from the creditors.  
4. Once claims are submitted, IRP collates and verifies the claims. 
5. The next step is to form the Committee of Creditors (CoC), consisting of financial creditors.  
6. Appointment of Resolution Professional (RP)

• CoC decides whether to continue with the IRP as the Resolution Professional (RP) or appoint a new one.
• RP prepares an Information Memorandum (IM) containing the financial details (such as assets, liabilities, creditors, litigation, etc.) of the corporate debtor 

7. Submission & evaluation of resolution plans

• RP invites bids/resolution plans from potential resolution applicants.
• Plans must be as per Section 30 of IBC that is it shall provide inter alia for insolvency resolution process costs, payment of debts of operational creditors, management of affairs of the corporate debtor, etc.  
• Thereafter, CoC votes (at least 66% majority) shall approve a resolution plan after considering its feasibility and viability. 

8. Approval by NCLT

• The approved plan is submitted to NCLT for final approval.
• If NCLT approves → Plan is implemented.
• If NCLT rejects or no resolution plan is approved → Company moves to liquidation.

9. Liquidation ( In case CIRP fails)

• If no resolution plan is approved within 180 days (extendable to 330 days), liquidation is ordered.
• A liquidator is appointed to sell assets and distribute the proceeds as per the waterfall mechanism laid out in the IBC. 

10. The final step is to dissolve the corporate debtor once the corporate debtor is completely liquidated. 

How are the cases listed?

1. At first, the daily cause list is prepared and published 

The Registry must prepare and display the cause list on the notice board before the end of each working day for the next working day.

2. In the cause list, matters are listed in the following order of priority

• Pronouncement of orders
• Cases requiring clarification
• Admission cases
• Cases for orders or directions
• Part-heard cases (latest ones take precedence)
• Other cases in numerical order or as per Bench directions

What are the contents of a cause list?

• Case number, date, time, court hall, and names of presiding members (President, Judicial Member, and Technical Member)
• Names of legal practitioners and their party representation
• Names of unrepresented parties with their ranks
• Registry objections and special directions are in the remarks column. 

This is how a case is entered in a cause list- 

National Company Law Tribunal 

    Mumbai Bench 

   Court-1 

  Hearing through- Hybrid mode

Coram- SH. [Name of the member] (Judicial) and 

SH. [Name of the member]  (Technical)

Sr. No.	CP No.	IA/CA No.	Purpose	Sectio n	Name of the parties	Counsel for Petitioner	Counsel for Respondent	RP/Liquidator	Remarks
State the purpose for which the matter is listed (For instance: Pronouncement of Orders)
1.	CP NO. 65 of 2025	–	For order	Section 10	Homestay Realty Pvt. Ltd.

 In a cause list, the matters that are kept for the pronouncement of orders are to be placed first. Thereafter, a supplementary list which is mainly for admissions and then an ordinary list of matters which is for hearing. 

3. Carry forward and adjournment of cases

• If a bench does not function due to a holiday or unforeseen reason:
  The cause list for that day will be carried forward to the next working day unless directed otherwise. 
• If a bench sitting is cancelled due to a member’s unavailability:

The Registrar will adjourn the cases to a suitable date unless otherwise directed, and the new dates or directions will be posted on the Registry’s notice board.

4. Listing of urgent matters

An urgent matter filed before noon shall be listed before the NCLT on the following working day if it is complete in all respects. in exceptional cases, it may be received after noon but before 3.00 P.M. for listing on the following day, with the specific permission of the Bench.  

How is the proceeding conducted? 

If we compare this proceeding with that of section 7 and Section 9, it is fairly simple. 

• On the first date of the hearing, the NCLT shall examine the application mainly on two grounds- 

1. Whether the application is complete in all respects; and 
2. Whether any disciplinary proceeding is pending against the IRP. 

If the NCLT is satisfied that the application is complete in all respects and that no disciplinary proceeding is pending against the IRP, only then shall the application be admitted. 

In case, the application is not complete, a period of 14 days is given to remedy the defect. Once the defect is remedied, the application is admitted. 

• Thereafter, the NCLT issues a notice to all the creditors of the corporate debtor to enter their appearance.

• The day on which, the creditors enter appearance, the NCLT directs them to file objections within a reasonable period (usually 2 weeks). 

• If the creditors fail to file objections even after granting them reasonable time, the NCLT proceeds with hearing the application and decides the case finally. 

• To decide a case, the NCLT should examine the case on the following points- 

1. Existence of debt; 
2. Existence of default; 
3. Based on the corporate debtor’s audited financial statement, the NCLT should be satisfied that it is not generating sufficient profits to repay debt and that it is a loss-making entity;  
4. That the corporate debtor is not disqualified as per S. 11 of the IBC;
5. Shareholders have unanimously decided to initiate CIRP by passing a special resolution. 

• Once the NCLT is satisfied with the above-mentioned points, it shall proceed with passing necessary orders. 
• In case the creditors file their objections, the NCLT shall first decide on their objections/application and then proceed with passing necessary orders. 

Very likely that some of you may have thought about what objections can the creditors file when the corporate debtor itself is approaching the NCLT to initiate CIRP. Well, in most cases, the creditors apprehend that the application to initiate CIRP is being filed with an ulterior motive to defraud them.  

What are the orders that may be passed?  

Here is the order that may be passed if your application is bonafide

1. The Corporate Person, viz., Homestay Realty Pvt. Ltd, is admitted in Corporate Insolvency Resolution Process under section 10 of the IBC.
2. The moratorium under section 14 of the IBC is declared for prohibiting all of the following in terms of Section 14(1) of the Code. 

1. the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority; 
2. transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; 
3. any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; 
4. the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor. 

3. The order of moratorium shall have effect from the date of this order till the completion of the Corporate Insolvency Resolution Process or until this Adjudicating Authority approves the Resolution Plan under sub-section (1) of section 31 or passes an order for liquidation of Corporate Debtor Company under section 33 of the IBC, as the case may be.  
   
4. We hereby appoint Mr. S. Shanakaran, having Registration No.[insert registrational number] and [insert e-mail ID:] to act as an IRP under section 13(1)(c) of the IBC. He shall conduct the Corporation Insolvency Resolution Process as per the provision of Insolvency and Bankruptcy Code, 2016 read with Regulation made thereunder: 

1. The IRP shall perform all his functions as contemplated, interalia, by sections 17, 18, 20 & 21 of the IBC.
   
   It is further made clear that all personnel connected with the Corporate Debtor, its Promoter or any other person associated with the management of the Corporate Debtor are under a legal obligation under section 19 of the IBC to extend every assistance and cooperation to the Interim Resolution Professional.
   
   Where any personnel of the Corporate Debtor, its Promoter or any other person required to assist or co-operate with IRP, do not assist or Co-operate, IRP is at liberty to make appropriate application to this Adjudicating Authority with a prayer for passing an appropriate order.  
   
2. This Adjudicating Authority directs the IRP to make a public announcement of the initiation of the Corporate Insolvency Resolution Process (CIRP) and call for the submission of claims under as required by section 13(1) (b) of the IBC.  
   
3. It is further directed that the supply of goods/services to the Corporate Debtor Company, it continues, shall not be terminated or suspended or interrupted during the moratorium period. 
   
   The IRP shall be under a duty to protect and preserve the value of the property of the ‘Corporate Debtor Company’ and manage the operations of the Corporate Debtor Company as a going concern as a part of an obligation imposed by section 20 of the IBC.
   
   The Operational Creditor is directed to pay an advance of Rs.1,00,000/- (Rupees One Lakh Only) to the IRP within two weeks from the date of receipt of this order for the purpose of smooth conduct of the Corporate Insolvency Resolution Process (CIRP) and IRP to file proof of receipt of such amount to this Adjudicating Authority along with First Progress Report. Subsequently, IRP may raise further demands for Interim funds, which shall be provided as per Rules. 
   
4. The Registry is directed to communicate a copy of this order to the Operational Creditor, Corporate Debtor and to the Interim Resolution Professional and the concerned Registrar of Companies, after completion of necessary formalities, within seven working days and upload the same on the website immediately after pronouncement of the order.

Final thoughts

Hope you now know the kind of information you need to keep handy before you proceed with preparing this application!

Unlike creditor-driven insolvency proceedings, this provision empowers corporate debtors to voluntarily initiate the CIRP and explore opportunities for revival or systematic liquidation.

The significance of section 10 is evident from noteworthy cases such as Go First, Indosolar Limited, and Rolta India Limited, where companies proactively sought insolvency protection. The structured process that begins with applying to the NCLT, followed by moratorium declaration, creditor claims verification and resolution plan approval, ensures a systematic approach to insolvency resolution.

However, while the provision facilitates business rescue and creditor protection, it also demands careful implementation to prevent misuse. The role of the judiciary and regulatory authorities, particularly the IBBI, remains crucial in ensuring transparency, discipline, fairness and adherence to the prescribed timelines.

Ultimately, section 10 reinforces the core objective of the IBC—offering distressed businesses a structured resolution mechanism while safeguarding the interests of creditors and other stakeholders. 

FAQs 

1. What happens after the application is admitted?

Once admitted, the Interim Resolution Professional (IRP) is appointed, and a moratorium is imposed, preventing legal actions and debt recovery against the corporate debtor.

2. Can creditors oppose an application under section 10?

Creditors cannot directly oppose the application, but the NCLT may reject it if it finds the application non-compliant or fraudulent. 

3. What renders an application defective? 

If the application does not meet the requirements of sub-section 4 of section 10, the application is likely to be rejected. 

4. What happens if the application is rejected?

If the NCLT rejects the application, the corporate debtor remains liable for its debts, and creditors may initiate separate proceedings under other provisions of the IBC.

5. What is the application fee payable on an application under section 10? 

Rs. 2000 

6. Is it mandatory to serve this application upon the IBBI? 

Yes. In fact, before filing this application before the NCLT, the applicant must serve the application to the Insolvency and Bankruptcy Board of India.