Commencement of CIRP
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What event triggers the commencement of the Corporate Insolvency Resolution Process (CIRP)?
CIRP commences when a competent adjudicating authority (NCLT) admits an application filed by a financial creditor, operational creditor, or the corporate debtor itself.
What is the minimum default amount required to file a CIRP application as per the MCA notification dated 24.03.2020?
₹1,00,00,000 (one crore rupees) is the minimum default threshold.
Which authority is empowered to admit or reject a CIRP application under the IBC 2016?
The National Company Law Tribunal (NCLT) is the adjudicating authority empowered to admit or reject a CIRP application under the IBC 2016.
Under Section 14 of IBC, what happens to suits and decrees against a corporate debtor during moratorium?
Institution or continuation of suits and execution of decrees is prohibited.
What is the minimum default threshold for a financial creditor to file a CIRP application against a corporate debtor?
A financial creditor can file a CIRP application only if the minimum amount of default is rupees one crore or more.
What is the maximum duration of CIRP including the permissible extension under Section 12?
270 days (180 days plus 90-day extension).
What moratorium is imposed immediately upon admission of a CIRP application under Section 14 of IBC?
Section 14 declares a moratorium prohibiting institution or continuation of suits, execution of any judgment/decree/order, and any attachment or recovery action against the corporate debtor's property.
What is the mandatory outer time limit for CIRP completion including litigation time under IBC?
330 days including extensions and time taken in legal proceedings.
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