Act Number: 31

Act Name: The Insolvency and Bankruptcy Code, 2016.

Year: 2016

Enactment Date: 2016-05-28

Long Title: An Act to consolidate and amend the laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximisation of value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders including alteration in the order of priority of payment of Government dues and to establish an Insolvency and Bankruptcy Board of India, and for matters connected therewith or incidental thereto.

Ministry: Ministry of Corporate Affairs

Department:

Section 95: Application by creditor to initiate insolvency resolution process.
    (1) A creditor may apply either by himself, or jointly with other creditors, or through a resolution professional to the Adjudicating Authority for initiating an insolvency resolution process under this section by submitting an application.
     (2) A creditor may apply under sub-section (1) in relation to any partnership debt owed to him for initiating an insolvency resolution process against—
         (a) any one or more partners of the firm; or
         (b) the firm.
     (3) Where an application has been made against one partner in a firm, any other application against another partner in the same firm shall be presented in or transferred to the Adjudicating Authority in which the first mentioned application is pending for adjudication and such Adjudicating Authority may give such directions for consolidating the proceedings under the applications as it thinks just.
     (4) An application under sub-section (1) shall be accompanied with details and documents relating to—
         (a) the debts owed by the debtor to the creditor or creditors submitting the application for insolvency resolution process as on the date of application;
         (b) the failure by the debtor to pay the debt within a period of fourteen days of the service of the notice of demand; and
         (c) relevant evidence of such default or non-repayment of debt.
     (5) The creditor shall also provide a copy of the application made under sub-section (1) to the debtor.
     (6) The application referred to in sub-section (1) shall be in such form and manner and accompanied by such fee as may be prescribed.
     (7) The details and documents required to be submitted under sub-section (4) shall be such as may be specified.
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