Under the provisions of the Insolvency and Bankruptcy Code, 2016, corporate insolvency resolution process can be initiated either by the financial creditor, or operational creditor or the corporate debtor (i.e., company) itself; they may file the application for this purpose under Section 7, Section 9 or Section 10 of the said Code, respectively. Once the application is admitted, the basic procedure is same and an interim resolution professional is appointed under Section 14 of the Code.
In Section 5(13) of the said Code, “insolvency resolution process costs” is defined which is the same for all the three categories of the applicants:
“(13) “insolvency resolution process costs” means—
(a) the amount of any interim finance and the costs incurred in raising such finance;
(b) the fees payable to any person acting as a resolution professional;
(c) any costs incurred by the resolution professional in running the business of the corporate debtor as a going concern;
(d) any costs incurred at the expense of the Government to facilitate the insolvency resolution process; and
(e) any other costs as may be specified by the Board;”
Therefore, it appears that there is no substantial difference in the fees, etc., if the application / petition for insolvency is filed either by a creditor or by the company (corporate debtor) itself.
Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.
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