Who is not entitled to initiate a CIRP: A Review Study

Who is not entitled to initiate a CIRP: A Review Study

Dr. S. Pardhasaradhi

Professor of Business Management

& Dean, Research &

Mrs. P. Gayatri

Asst. Professor, Business Management

St. Pious X PG (MBA) College for Women

Abstract

Introduction:

The initiation of the Corporate Insolvency and Bankruptcy Process (CIRP) is a major step under Sections 7, 9, and 10 of the Insolvency and Bankruptcy Code, 20161 (IBC/code).  These provisions, with other provisions, provide for the people entitled to initiate the CIRP under IBC. It is understood that Financial Creditors, Operational Creditors, and Corporate Debtors can initiate CIRP. Section 11 of the IBC very comprehensively provides for the few persons who shall not be entitled to initiate the corporate insolvency process.  In this paper, an attempt is made to comprehend the persons who are not entitled to initiate the CIRP, supported by judicial pronouncements on the subject. The judicial pronouncements focused on specific cases where winding-up petitions were pending in Courts under the Companies Act, 2013, prior to the enactment of the IBC.