Section 11: Persons not entitled to make application. -
The following persons shall not be entitled to make an application to initiate corporate insolvency resolution process under this Chapter, namely: -
(a) a corporate debtor undergoing a corporate insolvency resolution process1[or a prepackaged insolvency resolution process]; or
2[(aa) a financial creditor or an operational creditor of a corporate debtor undergoing a prepackaged insolvency resolution process; or]
(b) a corporate debtor having completed corporate insolvency resolution process twelve months preceding the date of making of the application; or
3[(ba) a corporate debtor in respect of whom a resolution plan has been approved under Chapter III-A, twelve months preceding the date of making of the application; or]
(c) a corporate debtor or a financial creditor who has violated any of the terms of resolution plan which was approved twelve months before the date of making of an application under this Chapter; or
(d) a corporate debtor in respect of whom a liquidation order has been made.
Explanation 4[I]. - For the purposes of this section, a corporate debtor includes a corporate applicant in respect of such corporate debtor.
5[Explanation II.- For the purposes of this section, it is hereby clarified that nothing in this section shall prevent a corporate debtor referred to in clauses (a) to (d) from initiating corporate insolvency resolution process against another corporate debtor]
Foot Note:
1 Inserted by the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021 with effect from 04th April2021 and enacted in Insolvency and Bankruptcy Code (Amendment) Act, 2021 with effect from 4th day of April 2021
2 Inserted by the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021 with effect from 04th April 2021 and enacted in Insolvency and Bankruptcy Code (Amendment) Act, 2021 with effect from 4th day of April 2021
3 Inserted by the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021 with effect from 04th April 2021 and enacted in Insolvency and Bankruptcy Code (Amendment) Act, 2021 with effect from 4th day of April 2021.
4Ins. by Act No. 1 of 2020, sec.4 (w.e.f. 28-12-2019)
5Ins. by Act No. 1 of 2020, sec.4 (w.e.f. 28-12-2019)