CHAPTER II - CORPORATE INSOLVENCY RESOLUTION PROCESS

Section 11 of the Insolvency and Bankruptcy Code 2016: Persons Not Entitled to Make Application

Updated: 30 September 2026 | Insolvency and Bankruptcy Code, 2016

Section 11 identifies corporate debtors and specified creditors who are temporarily or procedurally barred from making an application to initiate corporate insolvency resolution process under Chapter II. The section must be read with the later provisions governing pre-packaged insolvency resolution process and the creditor-initiated insolvency framework introduced in 2026.

2026 amendment: The Insolvency and Bankruptcy Code (Amendment) Act, 2026 amended clause (ba) of Section 11 by adding a reference to Chapter IV-A. The amendment became effective from 26 May 2026. Accordingly, the twelve-month restriction in clause (ba) extends to a corporate debtor in respect of whom a resolution plan has been approved under Chapter III-A or Chapter IV-A.
Contents

Who Is Not Entitled to Make a CIRP Application?

Section 11 provides that the following persons are not entitled to make an application to initiate CIRP under Chapter II:

Section 11(a): A corporate debtor undergoing a corporate insolvency resolution process or a pre-packaged insolvency resolution process.
Section 11(aa): A financial creditor or operational creditor of a corporate debtor undergoing a pre-packaged insolvency resolution process.
Section 11(b): A corporate debtor that completed CIRP during the twelve months preceding the date of the proposed application.
Section 11(ba): A corporate debtor in respect of whom a resolution plan was approved under Chapter III-A or Chapter IV-A during the twelve months preceding the date of the proposed application.
Section 11(c): A corporate debtor or financial creditor that violated any term of a resolution plan approved twelve months before the date of making an application under Chapter II.
Section 11(d): A corporate debtor in respect of whom a liquidation order has been made.

Pre-Packaged Insolvency and Chapter IV-A

The 2021 amendments expanded Section 11 to account for the pre-packaged insolvency resolution process under Chapter III-A. They added the PPIRP references in clause (a), inserted clause (aa), and inserted clause (ba).

The 2026 amendment further changed clause (ba) by adding Chapter IV-A, the creditor-initiated insolvency resolution process framework. This means that the twelve-month post-resolution-plan restriction in clause (ba) is not confined to a plan approved under the pre-packaged process.

Explanation I: Corporate Debtor Includes Corporate Applicant

For Section 11, the expression "corporate debtor" includes a corporate applicant in respect of that corporate debtor. The definition of "corporate applicant" is contained in Section 5(5).

Explanation II: Proceedings Against Another Corporate Debtor

Explanation II clarifies that Section 11 does not prevent a corporate debtor referred to in clauses (a) to (d) from initiating CIRP against another corporate debtor. Therefore, the statutory disability does not by itself eliminate the right of such a corporate debtor, acting as a creditor, to initiate insolvency proceedings against a different corporate debtor where the requirements of the Code are otherwise satisfied.

Definitions Relevant to Section 11

ProvisionTermMeaning
Section 3(7)Corporate personA company, limited liability partnership or another person incorporated with limited liability under applicable law, subject to the statutory exclusions.
Section 3(8)Corporate debtorA corporate person who owes a debt to any person.
Section 5(5)Corporate applicantThe corporate debtor or another person within the categories specified in Section 5(5) who is authorised to make an application for the corporate debtor.
Section 5(7)Financial creditorA person to whom a financial debt is owed, including a person to whom such debt has been legally assigned or transferred.
Section 5(20)Operational creditorA person to whom an operational debt is owed, including a person to whom such debt has been legally assigned or transferred.
Section 5(26)Resolution planA plan proposed by a resolution applicant for insolvency resolution of the corporate debtor as a going concern in accordance with Part II.

For the full Part II definitions, see Section 5.

Official Legal Resources

For the current consolidated Code and subordinate legislation, refer to the India Code portal, IBBI Legal Framework, IBBI Acts, IBBI Notifications and IBBI Regulations.

Legal information: Eligibility under Section 11 should be checked together with the particular CIRP route, the status of any existing or recently completed insolvency process, approved resolution plans, liquidation orders and the current provisions of the Code and applicable rules.