Section 10 IBC: Initiation of Corporate Insolvency Resolution by Corporate Applicant

Section 10 of the Insolvency and Bankruptcy Code, 2016 (IBC) permits an eligible corporate applicant to seek commencement of the corporate insolvency resolution process (CIRP) when the corporate debtor has committed a qualifying default. Unlike Sections 7 and 9, which concern creditor-initiated proceedings, Section 10 provides a route initiated on behalf of the corporate debtor itself.

Meaning of corporate applicant and default

Section 5(5) defines a corporate applicant to include the corporate debtor; an authorised member or partner; a person managing its operations and resources; or a person controlling and supervising its financial affairs. Section 3(12) defines default as non-payment of a debt when the whole or any part or instalment has become due and payable and is not paid. The corporate debtor is defined in Section 3(8).

Under Section 4, the generally applicable minimum default for corporate insolvency proceedings is Rs. 1 crore, following the Central Government notification dated 24 March 2020. The applicable threshold and transitional rules should be checked for the particular case.

Section 10: Subsection-by-subsection explanation

Section 10(1): Who may apply?

Where a corporate debtor has committed a default, its corporate applicant may apply to the Adjudicating Authority, ordinarily the National Company Law Tribunal (NCLT), to initiate CIRP. Eligibility remains subject to Sections 10A and 11 and other applicable restrictions.

Section 10(2): Prescribed application

The application must follow the prescribed form, particulars, manner and fee. Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 specifies Form 6 and supporting documents. Applicants should use the version of the rules and electronic filing instructions currently in force.

Section 10(3): Supporting information and corporate approval

The corporate applicant must furnish the required books of account and supporting records, the particulars and declarations required under the applicable rules, and the approval prescribed in clause (c): a special resolution of the shareholders or a resolution of at least three-fourths of the total number of partners, as applicable, approving the filing. The requirements concerning the proposed interim resolution professional (IRP) must be checked against the latest amended statutory text, regulations and prescribed form.

Section 10(4): Admission or rejection

Section 10(4) provides a 14-day statutory period for the NCLT to consider admission or rejection. The tribunal examines completeness and the applicable requirements concerning the proposed insolvency professional. Before rejecting an application for remediable defects, the applicant must be given notice and seven days from receipt to rectify the defects. Statutory timelines should not be treated as automatic admission upon expiry.

Section 10(5): Commencement date

CIRP begins on the date the NCLT admits the application, not on the date it is filed. Subsequent steps may include the declaration of moratorium under Sections 13 and 14, public announcement and appointment of an IRP under the relevant provisions.

Practical filing checklist

1. Identify the due and unpaid debt and assemble reliable proof of default.
2. Check the Section 4 threshold, Section 10A exclusion and Section 11 disqualifications.
3. Obtain the required shareholder special resolution or three-fourths partner resolution.
4. Prepare Form 6, financial statements, books of account and other prescribed annexures.
5. Complete the current insolvency professional consent and eligibility documentation, where required.
6. File with the competent NCLT bench, pay the prescribed fee and comply with service and e-filing requirements.
7. Respond promptly to any defect notice or directions from the tribunal.

Important restrictions and connected provisions

Section 10A: Applications under Sections 7, 9 and 10 cannot be filed for defaults arising during the protected period beginning 25 March 2020 and ending 24 March 2021; the statutory bar for defaults in that period is permanent. This does not generally prohibit filings based on defaults outside that period.

Section 11: Certain corporate debtors and corporate applicants are ineligible to initiate CIRP, subject to the precise statutory exceptions and amendments. Section 65 addresses fraudulent or malicious initiation of insolvency proceedings. Section 12A governs withdrawal of admitted applications subject to its conditions.

Sections 7 and 9: These are the corresponding routes for financial creditors and operational creditors. A Section 10 filing does not by itself settle debts or guarantee approval of a resolution plan.

Frequently asked questions

Can a company file for its own insolvency?

Yes. An eligible corporate applicant may seek CIRP under Section 10 after a qualifying default, subject to corporate approval and statutory requirements.

Is a board resolution alone sufficient?

No. Section 10(3)(c) additionally requires the prescribed shareholder special resolution or the resolution of at least three-fourths of the partners, as applicable.

When does the moratorium begin?

The moratorium follows an admission order under the Code; filing Form 6 alone does not create a Section 14 moratorium.

Which form is used for a Section 10 application?

Form 6 under Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016.

Legislation and official resources

• Insolvency and Bankruptcy Code, 2016 - India Code (official text; check later amendments)
• Insolvency and Bankruptcy Board of India - regulations, notifications and orders
• National Company Law Tribunal - benches, filing and orders
• Ministry of Corporate Affairs - rules and notifications
• The Insolvency and Bankruptcy Code, 2016 - Lawdadi guide

Legal information updated 21 October 2026. Amendments, notifications and judicial rulings may affect individual cases; verify the latest operative provisions before filing.