Section 10 IBC Petition

 

⚖️ Section 10 IBC Petition

(Under the Insolvency and Bankruptcy Code, 2016 – for Corporate Debtor (Voluntary Application))

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🧾 What is Section 10?

Section 10 allows a Corporate Debtor itself to file an application for initiating the Corporate Insolvency Resolution Process (CIRP) voluntarily when it is unable to pay its debts.

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📚 Legal Basis

• Section 10, IBC, 2016

• Rule 7 of Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016

• Filed in Form 6

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✅ Key Points

• Only the Corporate Debtor can file under Section 10.

• There must be a default in payment of debt.

• The debt can be to financial or operational creditors.

• The company or LLP itself acknowledges insolvency.

• No minimum default amount specified for voluntary application (though practical minimums apply).

• Must attach a Board Resolution authorizing the filing.

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📋 Documents to Attach

• Board Resolution approving filing of insolvency petition

• Statement of affairs of the corporate debtor

• Affidavit verifying facts of insolvency and default

• Consent of proposed IRP (in Form 2)

• Evidence of default (loan agreements, invoices, acknowledgment)

• Application in Form 6 (duly signed)

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📑 Basic Format of Section 10 Petition

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🏛️ BEFORE THE HON’BLE NATIONAL COMPANY LAW TRIBUNAL

[Bench Name – e.g., Ahmedabad Bench]

Company Petition No. __ of 20__
Under Section 10 of the Insolvency and Bankruptcy Code, 2016
Read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016

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1. Particulars of the Corporate Debtor

• Name of the Company/LLP

• Registered Office Address

• CIN / LLPIN / PAN

• Contact details

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2. Details of Default

• Amount of debt due

• Date of default

• Details of creditors (financial and operational)

• Nature of debt (loan, operational dues, etc.)

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3. Declaration by the Corporate Debtor

• Statement that it is unable to pay its debts as per the meaning under IBC

• Statement of assets and liabilities

• Confirmation no resolution for voluntary winding-up has been passed

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4. Proposed Interim Resolution Professional (IRP)

• Name, Registration number, Contact details

• Written consent attached (Form 2)

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5. Reliefs Sought

“The Applicant prays that this Hon’ble Tribunal may be pleased to:
a) Admit the present application under Section 10 of the Insolvency and Bankruptcy Code, 2016;
b) Initiate the Corporate Insolvency Resolution Process (CIRP);
c) Appoint Mr./Ms. [IRP Name] as Interim Resolution Professional;
d) Pass such other and further orders as deemed fit.”

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6. List of Enclosures

• Board Resolution

• Application Form 6

• Affidavit verifying facts

• Consent of IRP (Form 2)

• Statement of Affairs

• Evidence of default

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🧠 Important Notes

• This is a voluntary initiation by the corporate debtor itself.

• The tribunal may call for additional documents if required.

• Application must be filed within the statutory time (normally 14 days after Board resolution).

• Ensures orderly resolution and avoids winding up.