7. (1) 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.
Explanation.-For the purposes of this sub-section, a default includes a
default in respect of a financial debt owed not only to the applicant
financial creditor but to any other financial creditor of the corporate
debtor.
(2) The financial creditor shall make an application under sub-section (1)
in such form and manner and accompanied with such fee as may be prescribed.
(3) The financial creditor shall, along with the application
furnish-
(a) record of the default recorded with the information utility or such
other record or evidence of default as may be specified;
(b) the name of the resolution professional proposed to act as an interim
resolution professional; and
(c) any other information as may be specified by the Board.
(4) The Adjudicating Authority shall, within fourteen days of the receipt of
the application under sub-section (2), ascertain the existence of a default
from the records of an information utility or on the basis of other evidence
furnished by the financial creditor under sub-section (3).
(5) Where the Adjudicating Authority is satisfied that-
(a) a default has occurred and the application under sub-section (2) is
complete, and there is no disciplinary proceedings pending against the
proposed resolution professional, it may, by order, admit such application;
or
(b) default has not occurred or the application under sub-section (2) is
incomplete or any disciplinary proceeding is pending against the proposed
resolution professional, it may, by order, reject such application:
Provided that the Adjudicating Authority shall, before rejecting the
application under clause (b) of sub-section (5), give a notice to the
applicant to rectify the defect in his application within seven days of
receipt of such notice from the Adjudicating Authority.
(6) The corporate insolvency resolution process shall commence from the date
of admission of the application under sub-section (5).
(7) The Adjudicating Authority shall communicate-
(a) the order under clause (a) of sub-section (5) to the financial creditor
and the corporate debtor;
(b) the order under clause (b) of sub-section (5) to the financial creditor,
within seven days of admission or rejection of such application, as the case
may be.