Legal intelligence page · Statute
Section 7, Insolvency and Bankruptcy Code, 2016
Initiation of corporate insolvency resolution process by a financial creditor. This page tracks every judgment and regulatory development the platform indexes under Section 7.
Judgments indexed
918Supreme Court
74Last updated
3 days agoOverview
Section 7 allows a financial creditor to initiate the corporate insolvency resolution process on proof of a default. The adjudicating authority's enquiry is confined to the existence of a debt and a default, though the 2021 threshold for homebuyers and the discretion recognised in Vidarbha Industries have complicated that position.
Statutory text — extract
A financial creditor either by itself or jointly with other financial creditors may file an application for initiating corporate insolvency resolution process against a corporate debtor before the Adjudicating Authority when a default has occurred.
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