Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 13 MARCH 2021

Initiation Of CIRP By Operational Creditor

S.S. Rana & Co.
S.S. Rana & Co.
Contributor
S.S. Rana & Co.

S.S. Rana & Co.

Established in 1989, S.S. Rana & Co. is a premier intellectual property and corporate law firm...

View firm profile
Explore more from S.S. Rana & Co.

When the Corporate Debtor defaults in making payments to its creditors the process of Corporate Insolvency Resolution Process (CIRP) can be initiated against it by its creditors.

IndiaInsolvency/Bankruptcy/Re-Structuring
Nihit Nagpal
Nihit Nagpal
Anuj Jhawar
Anuj Jhawar
Author LinkedIn connections

When the Corporate Debtor defaults in making payments to its creditors the process of Corporate Insolvency Resolution Process (CIRP) can be initiated against it by its creditors. The Insolvency and Bankruptcy Code, 2016 (hereafter "the Code") provides the process for insolvency resolution process (IRP). For this purpose the government also enacted the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 and Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (hereafter "the Rules"). The Central government on March 24, 2020 notified that the minimum threshold under section 4 of the Code to initiate any proceeding of insolvency against a Corporate Debtor shall be not less than one crore rupees.1

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

The Insolvency And Bankruptcy Code (Amendment) Act, 2026

India's Insolvency and Bankruptcy Code undergoes significant reform through the 2026 Amendment Act, introducing stricter timelines, enhanced creditor oversight, and frameworks for group and cross-border insolvency. The amendments address persistent challenges in resolution efficiency, withdrawal restrictions, and fraudulent transaction scrutiny while aligning with international best practices to strengthen investor confidence.
IndiaInsolvency/Bankruptcy/Re-Structuring
Mansukhlal Hiralal & Company
Mansukhlal Hiralal & Company
Article

The IBC Amendment Act, 2026: Reshaping Real Estate Insolvency

The Insolvency and Bankruptcy Code (Amendment) Act, 2026 (‘Amendment Act’), which amends the Insolvency and Bankruptcy Code, 2016 (‘Code’), received Presidential assent on April 6, 2026. Most amendments took effect on May 26, 2026. However, three significant mechanisms the accelerated admission deadline, creditor-initiated resolution, and group insolvency have been enacted but have not yet come into force and will take effect only upon the issuance of a commencement notification by the Central Government under the applicable provisions of the Code.
IndiaInsolvency/Bankruptcy/Re-Structuring
Shardul Amarchand Mangaldas & Co
Shardul Amarchand Mangaldas & Co
Article

IBC Update - Removal Of Interim Moratorium For Personal Guarantors Apples To Pending Proceedings

The Bombay High Court recently addressed a critical question regarding the temporal application of Section 96(4) of the Insolvency and Bankruptcy Code, which removed the interim moratorium protection for personal guarantors of corporate debtors. The ruling clarifies whether this amendment applies only to fresh applications filed after its enactment or extends to insolvency proceedings that were already pending when the law changed. This decision has significant implications for creditors seeking to pursue p
IndiaInsolvency/Bankruptcy/Re-Structuring
Mansukhlal Hiralal & Company
Mansukhlal Hiralal & Company
Article

The End Of The “Settlement Exit”? — The Stricter Section 12A Regime Post-2026 Amendment

For nearly eight years, the Insolvency and Bankruptcy Code, 2016 (IBC) carried within it a quiet contradiction. On the one hand, it was designed to be a serious, time-bound, collective resolution mechanism and a creditor-driven process. On the other hand, it contained Section 12A, a provision that became one of the most strategically exploited exits in Indian commercial law.
IndiaInsolvency/Bankruptcy/Re-Structuring
Foresight Law Offices
Foresight Law Offices
Article

Use Of Artificial Intelligence (AI) In Courts

On June 3, 2026, the Supreme Court of India’s AI Committee released preliminary draft of the Regulations for Use of Artificial Intelligence (AI) in Courts, 2026 (“The Draft”). This marks a shift from scattered experiments with AI tools for translation, transcription, research and case management. With over 93,000 pending matters as of March 2026, the guidelines aim to ease processes for officials and citizens. AI could help reduce backlogs through automated cause-list preparation, transcription, research, and defect scrutiny, but its use also raises serious concerns.
IndiaTechnology
S.S. Rana & Co.
S.S. Rana & Co.
Article

Copy, Right? ANI Media Pvt. Ltd. v. Open AI OpCo LLC

When an artificial intelligence system is trained on copyrighted news content, and later answers a user’s question using what it learned, has the law been broken? On 24th July 2026, the Delhi High Court answered that question, at least for now. In ANI Media Pvt. Ltd. v. Open AI OpCo LLC, Justice Amit Bansal declined to grant an interim injunction against OpenAI, holding, on a prima facie, interim stage view, that the company’s use of ANI’s news content to train its large language models (“LLMs”) falls within the fair dealing exception under Section 52(1)(a) of the Copyright Act, 1957
IndiaIntellectual Property
S.S. Rana & Co.
S.S. Rana & Co.
Article

FSSAI Raises Turnover Limits For Food Business Registration And Licensing

The change is effected through two instruments: the Food Safety and Standards (Licensing and Registration of Food Businesses) Amendment Regulations, 2026, notified via gazette on 10th March, 2026[1] (the “Amendment Regulations”), and a subsequent implementation order dated 13th March, 2026[2] (the “Order”) issued by FSSAI directing all licensing authorities to apply the revised thresholds with effect from 1st April, 2026.
IndiaFood, Drugs, Healthcare, Life Sciences
S.S. Rana & Co.
S.S. Rana & Co.
Article

Understanding The 50% Wage Rule Under The Code On Wages, 2019: A Cap On Exclusions, Not A Ceiling On Wages

India’s new labour code framework, comprising four consolidated codes enacted between 2019 and 2020, represents the most comprehensive overhaul of employment laws since independence. Among these, the Code on Wages, 2019 (hereinafter referred to as the “Code”) amalgamates the Payment of Wages Act, 1936; the Minimum Wages Act, 1948; the Payment of Bonus Act, 1965; and the Equal Remuneration Act, 1976, into a single, unified enactment.
IndiaEmployment and HR
S.S. Rana & Co.
S.S. Rana & Co.
Article

CERT-In’s New AI-Vulnerability Guidelines: A Quick-Reference For OEMs, Tech Vendors And In-House Counsel

Cybersecurity regulation in India has, until now, largely spoken to the entity that suffers the breach. The 2022 CERT-In Directions issued under Section 70B of the Information Technology Act, 2000 fixed a six-hour reporting clock on the organisation that detects an incident. The new Guidelines flip the lens onto the entity upstream of that breach, the OEM or technology provider that built the product in the first place. For the first time, vendors supplying software, firmware, cloud platforms, or APIs into India carry direct, time-bound, and independently verifiable obligations of their own and not obligations that are merely passed through a customer contract, but obligations CERT-In itself may enforce.
IndiaTechnology
S.S. Rana & Co.
S.S. Rana & Co.