• Filing of Insolvency Case 
• Filing of the complaint under Sec 60(5) of Insolvency Act

The Insolvency and Bankruptcy Code, 2016 marks a substantial change in legislative policy relating to corporate insolvency, wherein, creditors in general and financial creditors in particular are substantially empowered to obtain debts due to them.

With regard to corporate insolvency, the Code adopts an applicant-based approach, providing for different mechanisms for insolvency resolution for financial creditors, operational creditors and corporate applicants.

In the corporate insolvency resolution process, the financial creditors assess the viability of the debtor’s business and the options for its revival and rehabilitation.

If the corporate insolvency resolution process fails or the financial creditors decide that the business of the debtor cannot be carried on in a profitable manner and it should be wound up, the debtor’s business undergoes the liquidation process.

Insolvency and Bankruptcy Board of India