Drafting, Pleadings and Appearances · Appearance before other Regulatory and Quasi-judicial Authorities

Appearance Before NCLT Under the Insolvency and Bankruptcy Code

Updated 11 October 2026 · Fact-checked

Appearance before the NCLT under the IBC means representing a party in insolvency proceedings. A CIRP starts with an application by a financial creditor (Section 7), an operational creditor (Section 9) or the corporate debtor itself (Section 10). You must know who files, what must accompany it, and the time limits for admission or rejection.

Understand Appearance before NCLT under the Insolvency and Bankruptcy Code

The Insolvency and Bankruptcy Code, 2016 is heard by the Adjudicating Authority, which for companies is the NCLT. Appeals go to the NCLAT. Your job as a professional is to prepare the application, present it and argue it correctly.

A corporate insolvency resolution process (CIRP) cannot start on its own. Someone must file an application. The Code gives three routes: a financial creditor under Section 7, an operational creditor under Section 9, and a corporate applicant (the debtor itself) under Section 10. Each route has its own preconditions and its own list of documents.

The common thread is default and completeness. The Tribunal admits an application only if the default is shown (or, under Section 9, the specified conditions are met) and the application is complete. It also checks that no disciplinary proceeding is pending against the proposed resolution professional. The 7-day notice to rectify differs by section. Under Sections 7 and 10, the Tribunal must give the notice before rejecting the application. Under Section 9, the proviso covers only rejection for an incomplete application (clause (ii)(a)).

CIRP commences from the date of admission of the application, not from the date of filing. This is a favourite point in answers on timelines.

On who may appear: the party itself, or a person authorised to represent it. In practice this means an advocate, or a Company Secretary, Chartered Accountant or Cost Accountant in practice, authorised by the party. Confirm the exact right of appearance from the Companies Act, 2013 and the NCLT Rules, since the text supplied here does not set it out. Related to this, Section 95 allows a creditor, by himself, jointly with other creditors or through a resolution professional, to apply for an insolvency resolution process. It covers partnership debts, where the application can be made against one or more partners of the firm or against the firm. It is not a corporate CIRP route.

Key rules to remember

Section 7: financial creditor: Default occurred → application (alone or jointly) → record of default (information utility or other evidence) + name of proposed IRP + other specified information → AA ascertains default within 14 days; Admit if default has occurred, application is complete and no disciplinary proceeding is pending against the proposed RP. Otherwise reject, after a 7-day notice to rectify.
Section 7: threshold for class creditors and allottees: Not less than 100 creditors or 10% of the class/project, whichever is less; Applies to financial creditors in the class under Section 21(6A)(a) and (b), and to allottees of the same real estate project, who must file jointly.
Section 7: communication: Order communicated within 7 days of admission or rejection; Admission order goes to financial creditor and corporate debtor. Rejection order goes to the financial creditor only.
Section 9: operational creditor: Demand notice/invoice (Section 8) → wait 10 days from delivery → no payment and no dispute notice → file application; Admission or rejection by the AA within 14 days of receipt of the application.
Section 9(3): documents: Invoice or demand notice copy + affidavit of no dispute notice + bank certificate (if available) + information utility record (if available) + other proof; The operational creditor may propose an RP to act as interim resolution professional.
Section 9(5): grounds for rejection: Incomplete application | payment made | no invoice/notice delivered | dispute notice or record of dispute | disciplinary proceeding pending against proposed RP; Notice to rectify within 7 days is required only before rejecting for incompleteness under clause (ii)(a).
Section 10: corporate applicant: Default by corporate debtor → application with books of account + proposed IRP + special resolution of shareholders (or resolution of at least three-fourths of partners); AA must admit or reject within 14 days of receipt. Admit if complete and no disciplinary proceeding is pending against the proposed RP. Reject if incomplete or if one is pending.
Commencement: CIRP commences from the date of admission; Stated in Sections 7(6), 9(6) and 10(5).
Section 54B: pre-packaged process: IP proposed as RP prepares a report on whether the debtor meets Section 54A and the base resolution plan conforms to Section 54A(4)(c); Duty begins on approval under Section 54A(2)(e). It ceases if the debtor fails to file in time or the application is admitted or rejected. Fees form part of pre-pack costs if admitted.

How to solve Appearance before NCLT under the Insolvency and Bankruptcy Code questions

Use the same sequence for any question on appearing or filing before the NCLT under the IBC.

1Identify the applicant: financial creditor, operational creditor or corporate debtor. This fixes the section (7, 9 or 10).
2Check the precondition: default for Sections 7 and 10; demand notice, 10-day wait and no dispute for Section 9.
3List the documents that must accompany the application under that section, and tick each against the facts.
4Check the proposed interim resolution professional and whether any disciplinary proceeding is pending against that person. A pending proceeding is a ground for rejection under Sections 7, 9 and 10.
5Apply the time limits. Under Section 7, the AA ascertains the existence of default within 14 days, and must record reasons in writing if it has not passed its order in that time. Under Sections 9 and 10, the AA admits or rejects within 14 days of receipt. For the 7-day rectification notice: Sections 7 and 10 require it before rejection generally, while Section 9 requires it only before rejecting for incompleteness. Under Section 7, the order is communicated within 7 days of admission or rejection.
6Conclude on admission or rejection and state the date CIRP commences (date of admission).
7Close with appearance points: who is authorised to represent the party, the authority or board resolution, and the appeal route to NCLAT.

Quickest way: Section 7 / 9 / 10 grid

When to use it: When a short case asks which application applies, whether it will be admitted, or what must be filed.

Write three columns: 7, 9, 10.
Under each, note the trigger, key documents and the 14-day period. Under Section 7 it is the period to ascertain default. Under Sections 9 and 10 it is the period to admit or reject.
Mark the one special item per section: class threshold (7), 10-day wait and affidavit (9), special resolution (10).
Match the facts to a column, test for defects, and state the outcome. Note the 7-day rectification notice: before any rejection under Sections 7 and 10, but only before rejection for incompleteness under Section 9.

Common mistakes in Appearance before NCLT under the Insolvency and Bankruptcy Code

Saying CIRP starts on the date of filing.
Students link commencement with the act of filing.
Fix: State that CIRP commences from the date of admission under Sections 7(6), 9(6) and 10(5).
Giving the 7-day rectification notice for every rejection ground under Section 9.
The proviso is remembered loosely and assumed to work the same way in all three sections.
Fix: Under Section 9 the notice is tied to rejection for an incomplete application, clause (ii)(a). A paid debt or a dispute notice cannot be cured by rectification. Sections 7 and 10 require the notice before rejection generally.
Filing a Section 9 application without waiting 10 days after the demand notice.
Students confuse the 10-day wait with the 14-day decision period.
Fix: The 10 days run from delivery of the notice or invoice. The 14 days run from receipt of the application by the AA.
Omitting the special resolution in a Section 10 application.
Students treat the debtor's filing as a management decision.
Fix: Attach the special resolution of shareholders, or a resolution of at least three-fourths of the partners, approving the filing.
Applying the 100-creditor or 10% threshold to every financial creditor.
The first proviso to Section 7(1) is read as a general rule.
Fix: It applies only to the specified classes under Section 21(6A)(a) and (b) and to allottees in the same real estate project.
Using Section 95 for a company.
Section numbers are mixed up.
Fix: Section 95 lets a creditor apply for an insolvency resolution process, including for partnership debts against partners or the firm. It is not a corporate CIRP route. Corporate debtors go through Sections 7, 9 and 10.

Worked examples

Example 1

Supplier Aarav Metals Ltd supplied goods worth ₹18,00,000 to Bharat Fabrics Ltd. It delivered a demand notice under Section 8. Twelve days later there is no payment and no dispute notice. Advise on the application and what must accompany it.

Show the solution

Aarav Metals is an operational creditor, so Section 9 applies.
The 10-day period from delivery of the notice has expired with no payment and no notice of dispute, so the application can be filed.
Documents: a copy of the invoice or demand notice, an affidavit that no dispute notice has been given, a bank certificate of non-payment (if available), an information utility record (if available), and any other proof of non-payment.
It may propose a resolution professional as interim resolution professional, and there must be no disciplinary proceeding pending against that person.
The AA must admit or reject within 14 days of receipt. If the application is incomplete, it will first give notice to rectify within 7 days.
If admitted, CIRP commences from the date of admission.

Answer: Aarav Metals may file a Section 9 application with the listed documents. If complete, undisputed and unpaid, the AA should admit it within 14 days, and CIRP begins on admission.

Example 2

The board of Chandra Textiles Pvt Ltd wants to file for CIRP because of a default. Which section applies, what must it furnish, and within what time must the NCLT decide?

Show the solution

The debtor is filing itself, so it is a corporate applicant under Section 10, and a default must have been committed.
It must furnish its books of account and other documents for the specified period, the name of the proposed interim resolution professional, and the special resolution passed by shareholders approving the filing.
The application must be in the prescribed form, with the prescribed particulars and fee.
The AA must, within 14 days of receipt, admit the application if it is complete and no disciplinary proceeding is pending against the proposed RP, or reject it if it is incomplete or a proceeding is pending.
Before rejecting, the AA must give notice to rectify the defects within 7 days of receipt of the notice.
CIRP commences from the date of admission.

Answer: Section 10 applies. File with books of account, the proposed IRP's name and a shareholders' special resolution. The NCLT decides within 14 days, and CIRP commences on admission.

Exam tips

Start every answer with the section and the type of applicant. Examiners reward correct identification first.
Quote the numbers exactly: 14 days, 7 days, 10 days, 100 creditors or 10%. Do not mix them. Remember that the 14 days in Section 7 is for ascertaining default, while in Sections 9 and 10 it is for admitting or rejecting.
Always address the proposed resolution professional and any pending disciplinary proceeding, because it is a ground for rejection in Sections 7, 9 and 10.
Remember the rectification notice: in Section 9 it is given only before rejecting for incompleteness, whereas Sections 7 and 10 give notice before rejection generally.
In drafting questions, list the annexures required under the relevant section: the resolution under Section 10, the record of default under Section 7, and the affidavit under Section 9.
Finish with the conclusion and the date CIRP commences. Briefly mention the appeal to NCLAT if the question asks about remedies.

Practice questions from Appearance before other Regulatory and Quasi-judicial Authorities

Appearance before NCLT under the Insolvency and Bankruptcy Code: frequently asked questions

Who can file a CIRP application before the NCLT?

A financial creditor under Section 7, an operational creditor under Section 9, or the corporate applicant (the debtor) under Section 10. Each has its own conditions and documents.

How long does the NCLT have to admit or reject an application?

Under Sections 9 and 10, the AA admits or rejects within 14 days of receipt of the application. Under Section 7, the 14 days is the period to ascertain the existence of default. If the AA has not passed its order in that time, it must record its reasons in writing. Before rejecting for defects, the AA gives 7 days to rectify, though under Section 9 this applies only to an incomplete application.

When does CIRP actually start?

It commences from the date the application is admitted, not the date it is filed. This is stated in Sections 7(6), 9(6) and 10(5).

Can an operational creditor file immediately after sending a demand notice?

No. It must wait 10 days from delivery of the notice or invoice. It can file only if it has received neither payment nor a notice of dispute in that time.

What is the duty of the IP before a pre-packaged process?

Under Section 54B, the proposed resolution professional prepares a report confirming whether the debtor meets Section 54A and the base resolution plan conforms to Section 54A(4)(c). The IP files reports with the Board as specified.