CHAPTER II - CORPORATE INSOLVENCY RESOLUTION PROCESS
Section 10 of the Insolvency and Bankruptcy Code 2016: CIRP by Corporate Applicant
Section 10 enables a corporate applicant to initiate the corporate insolvency resolution process in respect of its own corporate debtor when a default has occurred. The provision covers the application, prescribed information, NCLT admission or rejection and commencement of CIRP.
Who Is a Corporate Applicant?
Section 5(5) defines a "corporate applicant" for Part II. It includes the corporate debtor itself and the persons specified by that definition who are authorised to make an application for the corporate debtor.
A "corporate debtor" under Section 3(8) means a corporate person who owes a debt to any person. Section 10 is therefore the route through which an eligible corporate applicant seeks commencement of CIRP in respect of its own corporate debtor, subject to the Code.
When Can Section 10 Be Invoked?
Where a corporate debtor has committed a default, a corporate applicant may file an application with the Adjudicating Authority for initiating CIRP.
Application, Form 6 and Information to Be Furnished
Section 10(2) requires the application to be filed in the prescribed form, containing the prescribed particulars, in the prescribed manner and with the prescribed fee. Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 prescribes Form 6 for a corporate applicant.
Following the 2026 amendment, Section 10(3)(a) requires the corporate applicant to furnish information relating to its books of account, other documents and any other information as may be specified. The former requirement in Section 10(3)(b) to furnish information relating to a proposed interim resolution professional has been omitted.
The application should be supported by the documents and particulars required by the Code, the Application to Adjudicating Authority Rules and the applicable filing requirements of the NCLT.
Special Resolution or Partner Approval Under Section 10(3)(c)
A Section 10 application must be accompanied by the prescribed corporate approval. Section 10(3)(c), introduced in 2018, requires:
| Corporate debtor | Required approval |
|---|---|
| Company | Special resolution passed by shareholders of the company approving the filing of the Section 10 application. |
| Corporate debtor with partners | Resolution of at least three-fourths of the total number of partners approving the filing of the application. |
This is a substantive filing requirement and should be documented with the application.
NCLT Admission or Rejection Under Section 10(4)
The National Company Law Tribunal is the Adjudicating Authority for corporate persons. Under Section 10(4), it must, within fourteen days of receipt of the application, admit the application if it is complete or reject it if it is incomplete.
Before rejecting an incomplete application, the Adjudicating Authority must give the applicant notice to rectify the defects within seven days from receipt of the notice.
With effect from 26 May 2026, the disciplinary-proceeding test concerning a proposed resolution professional has been removed from Section 10(4). A further proviso requires the Adjudicating Authority to record reasons in writing if it has not passed an order within fourteen days from receipt of the Section 10(2) application.
Under Section 10(5), CIRP commences from the date of admission of the application.
Appointment of Interim Resolution Professional After the 2026 Amendment
The 2026 amendment changed the mechanism for a corporate applicant's CIRP. Since the applicant no longer proposes the interim resolution professional under Section 10, Section 16(3A) requires the Adjudicating Authority to make a reference to the Board for recommendation of an insolvency professional who may act as the interim resolution professional.
Definitions Relevant to Section 10
| Provision | Term | Meaning |
|---|---|---|
| Section 3(8) | Corporate debtor | A corporate person who owes a debt to any person. |
| Section 3(11) | Debt | A liability or obligation in respect of a claim which is due from any person and includes financial debt and operational debt. |
| Section 3(12) | Default | Non-payment of debt when the whole or any part or instalment has become due and payable and is not paid. |
| Section 5(5) | Corporate applicant | The corporate debtor or another person within the categories specified in Section 5(5) who is authorised to make the application. |
| Section 5(12) | Insolvency commencement date | The date of admission of the application for initiating CIRP by the Adjudicating Authority under the applicable provision. |
See also Section 5 definitions and Section 6 - persons who may initiate CIRP.
Current Legal Position
Section 10 remains an operative route for a corporate applicant to seek initiation of CIRP where the statutory conditions are met. NCLT orders in 2026 continue to consider Section 10 applications under Rule 7 and Form 6. The 2026 amendments changed the information and interim-resolution-professional framework but retained the central requirement of default, a complete application and admission by the Adjudicating Authority.
Official Legal Resources
For the current consolidated Code, rules, notifications and regulations, refer to the India Code portal, IBBI Legal Framework, IBBI Acts, IBBI Notifications and IBBI Regulations.