NATIONAL COMPANY LAW TRIBUNAL

Application for initiating insolvency resolution process or liquidation of corporate debtor shall be filed before the NCLT having jurisdiction over the place where registered office of the corporate entity is situated. Similarly, voluntary liquidation application of corporate person shall be filed before the NCLT having jurisdiction over the place where registered office of the corporate entity is situated.

Under Section 7 of Insolvency and Bankruptcy Code, 2016    – Financial creditor can, either alone or jointly with others, file an application before NCLT for initiating IRP when default has occurred. Default includes a default in respect of a financial debt owned not only to the applicant financial creditor but to any other financial creditor of the corporate debtor.

Section 5(8) of Code defines “Financial Debt” means a debt along with interest, if any, which is disbursed against the consideration and include: –

  1. a) Money borrowed against payment of interest;
  2. b) Any amount raised by acceptance under any acceptance credit facility or its de-materialized equivalent.
  3. c) Any amount raised pursuant to any note purchase facility
  4. d) Issue of bonds, notes, debentures, loan stock or any similar Instruments;
  5. e) The amount of any liability in respect of any lease or hire purchase contract which is deemed as a finance or capital lease under the Indian Accounting Standards or such other amounting standards as may be prescribed;
  6. f) Receivables sold or discounted other than any receivables sold on non-recourse basis;
  7. g) any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price and for calculating the value of any derivative transaction, only on the market value of such transaction shall be taken into account;
  8. h) any counter-indemnity obligation in respect of a guarantee, indemnity, bond, documentary letter of credit or any other instrument issued by a bank or financial institution;
  9. i) The amount of any liability in respect of any of the guarantee or indemnity for any of the items referred to in sub-clause (a) to (h) of this clause; The following are some of the instances of Financial Debt:

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CBD Belapur 400614
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