IBC Insolvency — Guides, Updates & Practical Insights

Sections 1 and 3 of the Insolvency and Bankruptcy Code, 2016: short title, commencement and the first eighteen definitions

The Code extends to the whole of India and comes into force on the date the Central Government appoints by notification, with different dates possible for different provisions. A claim is a right to payment (or to a remedy for breach that gives rise to payment) whether or not it is decided...

Section 3 of the Insolvency and Bankruptcy Code, 2016: person, property, secured creditor, security interest, transaction and the other definitions

A secured creditor is a creditor in whose favour security interest is created, and security interest covers mortgage, charge, hypothecation, assignment, encumbrance and any other agreement or arrangement securing payment or performance, but not a performance guarantee. Property is wide and includes...

Section 5 of the Insolvency and Bankruptcy Code, 2016: financial creditor, financial debt, dispute, corporate applicant and the other terms in clauses (1) to (11)

A financial creditor is a person to whom a financial debt is owed, including an assignee. A financial debt is a debt with interest, if any, disbursed against the consideration for the time value of money, and the clause lists nine heads. A dispute includes a suit or arbitration about the existence...

Section 5 of the Insolvency and Bankruptcy Code, 2016: insolvency commencement date, process costs, operational creditor, operational debt and the clauses that follow

The insolvency commencement date is the date of admission of the application under section 7, 9 or 10. An operational debt is a claim for goods or services (including employment) or for dues payable under any law to the Central Government, a State Government or a local authority. The insolvency...

6 min read09 Oct 2026

Section 5 of the Insolvency and Bankruptcy Code, 2016: related party, resolution applicant, resolution plan, resolution professional and voting share

A related party of a corporate debtor is a long list that includes directors, partners, key managerial personnel, relatives, companies in which they hold more than two per cent., and any person who controls more than twenty per cent. of voting rights. A resolution applicant is a person who submits...

Sections 6, 10A and 11 of the Insolvency and Bankruptcy Code, 2016: who may start the corporate process, the suspension for defaults from 25 March 2020 and who may not apply

Where a corporate debtor commits a default, a financial creditor, an operational creditor or the corporate debtor itself may initiate the process (section 6). Section 10A barred applications for defaults arising on or after 25 March 2020 for six months or such further period, not exceeding one...

6 min read09 Oct 2026

Section 8 of the Insolvency and Bankruptcy Code, 2016: demand notice by an operational creditor and the notice of dispute

An operational creditor may, on the occurrence of a default, deliver a demand notice or a copy of an invoice demanding payment to the corporate debtor in the prescribed form and manner. The corporate debtor has ten days from receipt to bring to the creditor's notice an existing dispute (or a...

6 min read08 Oct 2026

Section 11A of the Insolvency and Bankruptcy Code, 2016: disposal of applications when a pre-pack application and a CIRP application are both pending

If a section 54C application is pending, the Adjudicating Authority must admit or reject it before considering any later section 7, 9 or 10 application on the same corporate debtor. If a section 54C application is filed within fourteen days of an already pending section 7, 9 or 10 application, the...

6 min read09 Oct 2026