ASSIGNMENT

a)Based on the fact pattern above, identify the eligible creditors for a corporate insolvency
resolution process with relevant provisions and case laws, where applicable under the
Insolvency and Bankruptcy Code, 2016. [Drafting Instruction: answer must not exceed 500
words]

Based on the fact pattern ‘’ Mrs Dikshit is the financial creditor. A financial creditor either by
itself or jointly with other financial creditors, or any other person on behalf of the financial
creditor, as may be notified by the Central Government, may file an application for initiating
corporate insolvency resolution process against a corporate debtor before the Adjudicating
Authority when a default has occurred.

Vaccari, E. (2018). : This study focuses on the analysing the “limits” of insolvency law. The main purpose
of this study is to investigate the extent and of statutory insolvency rules. This study focuses to
investigate the enforcement of insolvency rule on selected common law jurisdictions of the United
States and the United Kingdom. The study highlight the problem and principle and suggest a novel
mechanism to determine the limit of insolvency law as a significant contribution to the filed. This work
has proposed an innovative solution to determine when companies should rely on corporate distress
ISSN NO: 0776-3808, Issue 2, 2020 remedies. It has also identified the factors that promote and thwart
the conceptualisation of the law of corporate distress

Ms. Srilekhya Eduri,Dr. N. Jayaprada,Mr. Srinivas Eduri (2018) : The study Lays down the basic
framework of IBC. Insolvency and Bankruptcy Code was introduced in 2015 and came into existence in
May, 2016 as a supplement for making progressive and constructive initiatives which will address all the
situations

Nishith Desai Associates (2019) : The researcher analysed the key impact of IBC on the Indian debt
market in its early stages.The researchers are of the opinion that there numerous challenges in the
effective implementation of the Code. In the views of the researcher constructive interpretation by the
judiciary along with the effective amendments to the Code have helped in eliminating many of
challenging issues.

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.

(1) 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.

(2) 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.

(3) 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).

Provided that if the Adjudicating Authority has not ascertained the existence of default and
passed an order under sub-section (5) within such time, it shall record its reasons in writing for
the same.

(4) 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.

(5) The corporate insolvency resolution process shall commence from the date of admission of
the application under sub-section (5).

(6) 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.
b) Based on the fact pattern identify the corporate debtor(s) for a corporate insolvency
resolution process with the relevant provisions. [Drafting Instruction: answer must not
exceed 250 words

According to the fact pattern ‘’Grand Builders” are the corporate debtor . Insolvency of
corporate persons deals with the insolvency of a corporate bodies like a private limited
company or limited company. This section deals with insolvency resolution process of a
corporate debtor is known as the corporate insolvency resolution process (CIRP). Licensed
insolvency professionals would execute the process for insolvency resolution under the
supervision of adjudicating authority. In this article, we look at the corporate insolvency
resolution process in detail.

Corporate Insolvency Resolution Process (CIRP)

Step 1: Application to the NCLT

Step 2: Appointment of Interim insolvency Resolution Professional

Step 3: Moratorium

Step 4: Verification and analysis of claims

Step 5: Appointment of the resolution professional

Step 6: Acceptance of the Resolution Plan

Step 7: Submission of Resolution plan to the NCLT