ASHOK KUMAR SINGH : Section 7 IBC Petition

Monday, May 19, 2025

Section 7 IBC Petition

⚖️ Section 7 IBC Petition

(Under the Insolvency and Bankruptcy Code, 2016)

Section 7 of the IBC allows a Financial Creditor to initiate a Corporate Insolvency Resolution Process (CIRP) against a Corporate Debtor for default in repayment of financial debt.

🧾 Who Can File It?

Financial Creditor(s) (banks, NBFCs, bondholders, or anyone who has lent money and falls under the definition in Sec. 5(7) IBC)

📋 Requirements Before Filing

Debt must be financial debt (loan, debenture, bond, etc.)
Minimum default amount: ₹1 crore
Evidence of default: Bank statement, loan agreement, certificate from information utility (like NeSL), etc.
Demand notice is NOT required under Sec. 7 (unlike Sec. 8 for operational creditors)

📑 Basic Format of Section 7 Petition

(Filing in Form 1 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016)

🏛️ BEFORE THE HON’BLE NATIONAL COMPANY LAW TRIBUNAL

[Bench Name – e.g., Mumbai Bench]

Company Petition No. ___ of 20__
In the matter of:
Insolvency and Bankruptcy Code, 2016
Read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016

In the matter of Section 7:
Application by Financial Creditor

1. Particulars of Financial Creditor (Applicant)

Name
Address
Email, Contact Number
PAN / CIN / Registration No.

2. Particulars of Corporate Debtor (Respondent)

Name
Registered Address
CIN / PAN
Email ID

3. Details of Default

Amount of debt: ₹[amount]
Date of default: [date]
Total outstanding: ₹[amount]
Bank statements / loan agreement / default acknowledgment / balance sheet entries
Certificate from information utility (if available)

4. Details of the Proposed Interim Resolution Professional (IRP)

Name
Registration number (IBBI/IPA/...)
Email and mobile
Written consent in Form 2 to be attached

5. Relief Sought

“The Applicant prays that this Hon’ble Tribunal may be pleased to:

a) Admit the application under Section 7 of the IBC;
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 in the interest of justice.”

6. List of Documents to Attach

Loan agreement/sanction letter
Bank statements
Demand letters (if any)
Board resolution of the applicant (for companies)
Form 2 (Consent of IRP)
Form 1 (duly filled and signed)
Authorization letter / power of attorney
Certificate from information utility (if available)

ASHOK KUMAR SINGH