Chapter II - Corporate Insolvency Resolution Process
Section 6
Section 6: who may initiate corporate insolvency resolution
When a corporate debtor commits a default, Section 6 identifies three parties who may initiate a corporate insolvency resolution process: a financial creditor, an operational creditor or the corporate debtor itself.
On this page
Need advice on Section 6?
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
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.
Introduction
Section 6 answers who can start the process; it does not by itself set out the petition requirements. Those requirements vary with the applicant's route under Sections 7, 8–9 and 10, and the Part II threshold in Section 4 still matters.
Key takeaways
Three applicant categories
A financial creditor, an operational creditor and the defaulting corporate debtor each have a route to initiate CIRP.
Default is required
The section begins with the condition that the corporate debtor has committed a default.
Follow the chapter's procedure
Section 6 refers applicants to the manner provided in Chapter II; it is not a standalone filing procedure.
Financial creditor route
A financial creditor's application route is under Section 7. The classification of the debt and evidence of default need to be checked under the Code and applicable rules before filing.
Operational creditor route
An operational creditor follows the demand-notice and application provisions in Sections 8 and 9. Section 6 gives that creditor standing but does not waive those steps.
Corporate debtor route
The corporate debtor may initiate its own CIRP through the corporate applicant route in Section 10, subject to the Code's conditions and disqualifications. The Section 4 default threshold applies to the Part II process.
Practical checklist
Do
- Classify the applicant and the debt before choosing the filing route.
- Document the corporate debtor's default and assess the Section 4 threshold.
- Check the procedure and eligibility rules for the chosen route.
Avoid
- Do not file under Section 6 alone; use the applicable application provision.
- Do not assume all creditors follow the same notice and filing steps.
Glossary
- Financial creditor
- A person to whom a financial debt is owed, as defined by Section 5(7).
- Operational creditor
- A person to whom an operational debt is owed, as defined by Section 5(20).
- Corporate debtor
- A corporate person who owes a debt to any person, as defined by Section 3(8).
Frequently asked questions
Can a company start its own CIRP?
Yes. Section 6 includes the corporate debtor itself among those who may initiate the process, using the route and conditions in this chapter.
Does Section 6 itself prescribe the petition form?
No. It identifies who may initiate CIRP and refers to the manner provided in Chapter II.
Need help applying this provision to your situation?
Contact BizeneedLast updated 9 October 2026