Persons who may initiate corporate insolvency resolution process
Section 6 of the Insolvency and Bankruptcy Code, 2016 deals with persons who may initiate corporate insolvency resolution process. Where any corporate debtor commits a default, a financial creditor, an operational creditor or the corporate debtor itself may initiate corporate insolvency resolution process in respect of such corporate debtor in the manner as provided under this Chapter. The Act was enacted on 28 May 2016.
Where any corporate debtor commits a default, a financial creditor, an operational creditor or the corporate debtor itself may initiate corporate insolvency resolution process in respect of such corporate debtor in the manner as provided under this Chapter.
Section 6, The Insolvency and Bankruptcy Code, 2016 (Act 31 of 2016).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Referred to by 1
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Vidarbha Industries Power Limited vs Axis Bank Limited
Court's Decision & Legal Precedent
Section 7(5)(a) of the Insolvency and Bankruptcy Code 2016 confers discretionary power on the Adjudicating Authority (NCLT) to admit or reject an application for Corporate Insolvency Resolution Process filed by a financial creditor, even when default is established and the application is complete. The NCLT must apply its mind to relevant factors including the feasibility of initiating CIRP against the corporate debtor, the impact of pending regulatory appeals and awards, and the overall financial health and viability of the corporate debtor under its existing management. The existence of a financial debt and default in payment thereof only gives the financial creditor the right to apply for initiation of CIRP; it does not mandate automatic admission. The NCLT may exercise its discretion to keep the admission of the application in abeyance or reject it if the corporate debtor demonstrates that a substantial award or decree in its favor is pending, which if realized would exceed the debt claimed by the financial creditor.
On this section: Persons who may initiate corporate insolvency resolution process - financial creditor, operational creditor, or corporate debtor itself
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… of the National Company Law Tribunal (hereinafter referred to as "NCLT"/"Adjudicating Authority") and the National Company Law Appellate Tribunal (hereinafter referred to as "NCLAT"/"Appellate Tribunal"), qua resolution plans that have been approved by the Committee of Creditors. The constitutional validity of Sections 4 and 6 of the Insolvency and Bankruptcy Code (Amendment) Act, 2019 (hereinafter referred to as the "Amending Act of 2019") have also been challenged. These appeals and writ petitions are an aftermath of this Court's judgment dated 04.10.2018, reported as ArcelorMittal India Private Limited v. Satish Kumar Gupta (2019) …
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… of the National Company Law Tribunal (hereinafter referred to as "NCLT"/"Adjudicating Authority") and the National Company Law Appellate Tribunal (hereinafter referred to as "NCLAT"/"Appellate Tribunal"), qua resolution plans that have been approved by the Committee of Creditors. The constitutional validity of Sections 4 and 6 of the Insolvency and Bankruptcy Code (Amendment) Act, 2019 (hereinafter referred to as the "Amending Act of 2019") have also been challenged. These appeals and writ petitions are an aftermath of this Court's judgment dated 04.10.2018, reported as ArcelorMittal India Private Limited v. Satish Kumar Gupta (2019) …
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… of the National Company Law Tribunal (hereinafter referred to as "NCLT"/"Adjudicating Authority") and the National Company Law Appellate Tribunal (hereinafter referred to as "NCLAT"/"Appellate Tribunal"), qua resolution plans that have been approved by the Committee of Creditors. The constitutional validity of Sections 4 and 6 of the Insolvency and Bankruptcy Code (Amendment) Act, 2019 (hereinafter referred to as the "Amending Act of 2019") have also been challenged. These appeals and writ petitions are an aftermath of this Court's judgment dated 04.10.2018, reported as ArcelorMittal India Private Limited v. Satish Kumar Gupta (2019) …
Questions about Section 6
What have the courts held on Section 6 of the Insolvency and Bankruptcy Code?
Vidarbha Industries Power Limited vs Axis Bank Limited (12 Jul 2022) is the leading judgment on this section among those set out below: Persons who may initiate corporate insolvency resolution process - financial creditor, operational creditor, or corporate debtor itself.
How do I find court cases under Section 6 of the Insolvency and Bankruptcy Code?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Insolvency and Bankruptcy Code 6, section 6 Insolvency and Bankruptcy Code, section 6 of the Insolvency and Bankruptcy Code. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Vidarbha Industries Power Limited vs Axis Bank Limited (12 Jul 2022).
What should I read with Section 6 of the Insolvency and Bankruptcy Code, and has it changed?
1 other provision in this corpus refers back to it.
When was Section 6 of the Insolvency and Bankruptcy Code enacted?
Section 6 of the Insolvency and Bankruptcy Code, cited as Insolvency and Bankruptcy Code 6, was enacted on 28 May 2016 as Act 31 of 2016. It is in force as at the date shown on this page.
Other sections of this Act
- 240. Power to make regulations2349 words
- 5. Definitions2326 words
- 3. Definitions1381 words
- 29A. Person not eligible to be resolution applicant1152 words
- 239. Power to make rules963 words
- 196. Powers and functions of Board942 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 19 Oct 2026. This page is not a substitute for legal advice.