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    Question

    A financial creditor either by itself or jointly with other financial creditors, or any other person on behalf of the financial creditor, as may be notified by the Central Government, may file an application for initiating corporate insolvency resolution process against a corporate debtor before the Adjudicating Authority when_____________

    A A debt is due Correct Answer Incorrect Answer
    B A default may occur Correct Answer Incorrect Answer
    C A default might occur Correct Answer Incorrect Answer
    D A default has occurred Correct Answer Incorrect Answer
    E A default has been initiated Correct Answer Incorrect Answer

    Solution

    ‘IBC’  Section 7-Initiation of corporate insolvency resolution process by financial creditor: (1) A financial creditor either by itself or jointly with other financial creditors, or any other person on behalf of the financial creditor, as may be notified by the Central Government, may file an application for initiating corporate insolvency resolution process against a corporate debtor before the Adjudicating Authority when a default has occurred. Provided that for the financial creditors, referred to in clauses (a) and (b) of the sub-section (6A) of the section 21, an application for initiating corporate insolvency resolution process against the corporate debtor shall be filed jointly by not less than one hundred of such creditors in the same class or not less than ten percent. of the total number of such creditors in the same class, whichever is less.

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