The following persons shall not be entitled to make an application to initiate corporate insolvency resolution process under this Chapter, namely:---
(a) a corporate debtor undergoing a corporate insolvency resolution process 1[ or a pre-packaged insolvency resolution process]; or
1[(aa) a financial creditor or an operational creditor of a corporate debtor undergoing a prepackaged insolvency resolution process; or]
(b) a corporate debtor having completed corporate insolvency resolution process twelve months preceding the date of making of the application; or
1[(ba) a corporate debtor in respect of whom a resolution plan has been approved under Chapter III-A, twelve months preceding the date of making of the application; or]
(c) a corporate debtor or a financial creditor who has violated any of the terms of resolution plan which was approved twelve months before the date of making of an application under this Chapter; or
(d) a corporate debtor in respect of whom a liquidation order has been made.
2[Explanation I].--- For the purposes of this section, a corporate debtor includes a corporate applicant in respect of such corporate debtor.
3[Explanation II.--- For the purposes of this section, it is hereby clarified that nothing in this section shall prevent a corporate debtor referred to in clauses (a) to (d) from initiating corporate insolvency resolution process against another corporate debtor.]
(a) a corporate debtor undergoing a corporate insolvency resolution process 1[ or a pre-packaged insolvency resolution process]; or
1[(aa) a financial creditor or an operational creditor of a corporate debtor undergoing a prepackaged insolvency resolution process; or]
(b) a corporate debtor having completed corporate insolvency resolution process twelve months preceding the date of making of the application; or
1[(ba) a corporate debtor in respect of whom a resolution plan has been approved under Chapter III-A, twelve months preceding the date of making of the application; or]
(c) a corporate debtor or a financial creditor who has violated any of the terms of resolution plan which was approved twelve months before the date of making of an application under this Chapter; or
(d) a corporate debtor in respect of whom a liquidation order has been made.
2[Explanation I].--- For the purposes of this section, a corporate debtor includes a corporate applicant in respect of such corporate debtor.
3[Explanation II.--- For the purposes of this section, it is hereby clarified that nothing in this section shall prevent a corporate debtor referred to in clauses (a) to (d) from initiating corporate insolvency resolution process against another corporate debtor.]
Source footnotes
1. Ins. by Act 26 of 2021, s. 4 (w.e.f. 4-4-2021).2. The existing Explanation shall be numbered as Explanation I by Act 1 of 2020, s. 4 (w.e.f. 28-12-2019).
3. Ins. by Act 1 of 2020, s. 4 (w.e.f. 28-12-2019).
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More sections of this act
Section 1 · Short title, extent and commencement.Section 2 · Application.Section 3 · Definitions.Section 4 · Application of this Part.Section 5 · Definitions.Section 6 · Persons who may initiate corporate insolvency resolution process.Section 7 · Initiation of corporate insolvency resolution process by financial creditor.Section 8 · Insolvency resolution by operational creditor.India Code, Government of India. Text fetched 09 Oct 2026. Source metadata reports last modification: 2024-07-25. Check the linked official text and subsequent notifications when applying a provision.