Banking · Insolvency and Bankruptcy Code (IBC)
For a financial creditor to initiate the Corporate Insolvency Resolution Process (CIRP) against a corporate borrower under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, which of the following must be proved to the satisfaction of the National Company Law Tribunal (NCLT)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The corporate debtor has fraudulently or intentionally disposed of its primary assets.
- 2A financial debt is due, and a default in its repayment has occurred.✓
- 3The corporate debtor is highly likely to become a wilful defaulter in the near future.
- 4The security provided by the borrower is insufficient to cover the outstanding debt.
Correct answer
A financial debt is due, and a default in its repayment has occurred.
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