IBC 11 — Persons not entitled to make application

Insolvency & Bankruptcy Code, 2016

Statutory text

The following persons shall not be entitled to make an application to initiate corporate insolvency resolution process under this Chapter, namely:—
(a) a corporate debtor undergoing a corporate insolvency resolution process; or (b)  a  corporate  debtor  having  completed  corporate  insolvency  resolution  process  twelve  months preceding the date of making of the application; or (c) a corporate debtor or a financial creditor who has violated any of the terms of resolution plan which was approved twelve months before the date of making of an application under this Chapter; or (d) a corporate debtor in respect of whom a liquidation order has been made.

[Explanation I].—For the purposes of this section, a corporate debtor includes a corporate applicant in respect of such corporate debtor.

3. The existing Explanation shall be numbered as Explanation I by Act 1 of 2020, s. 4 (w.e.f. 28-12-2019).

[Explanation II.—For  the  purposes  of this  section, it is  hereby  clarified  that  nothing  in this  section shall  prevent  a  corporate  debtor  referred  to  in  clauses  (a)  to  (d)  from  initiating  corporate  insolvency resolution process against another corporate debtor.]

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