Chapter II - Corporate Insolvency Resolution Process
Section 10
Section 10: insolvency application by a corporate applicant
Section 10 lets a corporate debtor that has defaulted start its own corporate insolvency resolution process through a corporate applicant. Since 26 May 2026, the applicant no longer furnishes a proposed interim resolution professional. Instead, under new Section 16(3A), the tribunal refers the matter to IBBI for a recommendation. The tribunal admits a complete application and rejects an incomplete one.
On this page
Need advice on Section 10?
This article is for general information. Refer to the Insolvency and Bankruptcy Code, 2016 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) Where a corporate debtor has committed a default, a corporate applicant thereof may file an application for initiating corporate insolvency resolution process with the Adjudicating Authority.
(2) The application under sub-section (1) shall be filed in such form, containing such particulars and in such manner and accompanied with such fee as may be prescribed.
(3) The corporate applicant shall, along with the application, furnish—
(a) the information relating to its books of account and such other documents and any other information, as may be specified; and
(c) the special resolution passed by shareholders of the corporate debtor or the resolution passed by at least three-fourth of the total number of partners of the corporate debtor, as the case may be, approving filing of the application.
(4) The Adjudicating Authority shall, within a period of fourteen days of the receipt of the application, by an order—
(a) admit the application, if it is complete; or
(b) reject the application, if it is incomplete:
Provided that Adjudicating Authority shall, before rejecting an application, give a notice to the applicant to rectify the defects in his application within seven days from the date of receipt of such notice from the Adjudicating Authority:
Provided further that if the Adjudicating Authority has not passed an order under this sub-section within a period of fourteen days from the date of receipt of the application under sub-section (2), it shall record the reasons for such delay in writing.
(5) The corporate insolvency resolution process shall commence from the date of admission of the application under sub-section (4) of this section.
Introduction
Section 6 of the Insolvency and Bankruptcy Code (Amendment) Act, 2026, in force from 26 May 2026 under S.O. 2625(E), amended subsections (3) and (4). Clause (3)(a) now ends "and any other information, as may be specified; and". Clause (3)(b), on information about a proposed resolution professional, was omitted, which is why the current text runs from (a) to (c). The disciplinary-proceeding conditions were removed from subsection (4), and a proviso requiring reasons for delay beyond fourteen days was added.
Section 10 of the same 2026 Act inserted Section 16(3A). Where an application is made under Section 10, the tribunal refers the matter to the Board (IBBI) for its recommendation of an insolvency professional who may act as interim resolution professional. Section 11 lists persons who are not entitled to apply.
Key takeaways
Default is the trigger
Subsection (1) allows the application once the corporate debtor has committed a default. The Section 4 minimum default applies to Part II.
Approving resolution required
The application must be approved by a special resolution of shareholders or, for partnership-type debtors, a resolution of at least three-fourths of the total number of partners.
No IRP proposal by the applicant
Clause (3)(b) was omitted in 2026. Under Section 16(3A), the tribunal seeks IBBI's recommendation of an insolvency professional.
Completeness decides admission
Subsection (4) now asks only whether the application is complete. A seven-day rectification notice comes before rejection, and the tribunal must give written reasons if it takes longer than fourteen days.
Who is a corporate applicant
Section 5(5) defines a corporate applicant as the corporate debtor itself, or a member or partner authorised under its constitutional document to make the application. It also covers an individual in charge of managing its operations and resources, and a person with control and supervision over its financial affairs.
Application, books and information
Rule 7 of the Application to Adjudicating Authority Rules, 2016 requires the application in Form 6, with the documents listed there and in the CIRP Regulations. A copy must be served on IBBI before filing.
Regulation 2E of the CIRP Regulations, inserted with effect from 2 June 2026, specifies the information a corporate applicant furnishes. It covers book-of-account details for the preceding three financial years or since incorporation, whichever is later, and asset particulars. It also asks for creditor and employee lists, litigation, related-party transactions, licences, statutory dues and enforcement proceedings.
Order and commencement
The tribunal admits a complete application or rejects an incomplete one after a seven-day rectification notice. CIRP commences from the date of admission under subsection (5). The interim resolution professional is then appointed under Section 16 after the tribunal's reference to IBBI under Section 16(3A).
Practical checklist
Do
- Pass and record the special resolution or partners' resolution approving the filing before the application is made.
- Compile the Regulation 2E information from the books and records for the required period.
- Check Section 11 eligibility and the Section 4 minimum default before filing.
- Serve a copy of the application on IBBI before filing.
Avoid
- Do not include a proposed interim resolution professional as a statutory requirement; clause (3)(b) was omitted in 2026.
- Do not rely on a pre-2026 copy of Section 10(4) that refers to disciplinary proceedings.
- Do not assume the order is automatic after fourteen days; the tribunal records reasons for delay instead.
Glossary
- Corporate applicant
- The corporate debtor, an authorised member or partner, the individual managing its operations and resources, or the person controlling its financial affairs (Section 5(5)).
- Special resolution
- For a company, a resolution passed as a special resolution under Section 114(2) of the Companies Act, 2013.
Frequently asked questions
Does the corporate applicant still propose an interim resolution professional?
No. Clause (3)(b) was omitted from 26 May 2026. Under Section 16(3A), the tribunal refers the matter to IBBI for a recommendation.
What approval is needed to file under Section 10?
Section 10(3)(c) requires a special resolution of shareholders, or a resolution of at least three-fourths of the total number of partners, approving the filing.
On what grounds can the tribunal reject a Section 10 application?
Under the amended Section 10(4), the tribunal rejects an incomplete application, after giving seven days to rectify the defects. The disciplinary-proceeding ground was removed in 2026.
Need help applying this provision to your situation?
Contact BizeneedLast updated 11 October 2026