Sections 58C and 58D explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 58C gives the corporate debtor thirty days from the creditor-initiated insolvency commencement date to object to the commencement of the process, and tells the Adjudicating Authority what to do on each kind of finding. Section 58D fixes the time to complete the process: one hundred and fifty days, with one extension of not more than forty-five days. Both sections are inserted by the Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026); they are not in the IBBI consolidated text of the Code amended up to 12 August 2021, and this article explains them from the Amendment Act.
The corporate debtor may apply within thirty days of the creditor-initiated insolvency commencement date if it objects to the commencement. If no default occurred, the Adjudicating Authority may declare the commencement void ab-initio; if a default occurred but sections 58A or 58B were contravened, it shall convert the process to a corporate insolvency resolution process. The order is due in thirty days. The process is to be completed in one hundred and fifty days, extendable once by not more than forty-five days.
Section 58C(1): the objection
"If the corporate debtor has any objection to the commencement of the process under section 58B, it may file an application to the Adjudicating Authority within a period of thirty days from the creditor-initiated insolvency commencement date in such form and manner as may be specified, accompanied with such fee as may be prescribed."
The creditor-initiated insolvency commencement date is the date of the public announcement under section 58B(4), as the Explanation at the end of section 58B says. The thirty days run from that date. The form, manner and fee are left to what is specified or prescribed; none is in the texts consulted. A corporate debtor served with a notice and public announcement can take legal dispute resolution advice at once, since the period is short and runs from the announcement.
Section 58C(2): what the Adjudicating Authority does
On an application, if the Adjudicating Authority "is satisfied that––"
| Clause | Finding | Consequence |
|---|---|---|
| (a) | "a default has not occurred or both a default has not occurred and the initiation of the creditor-initiated insolvency resolution process was in contravention of section 58A or 58B" | "it may, by order, declare the commencement of the process to be void ab-initio" |
| (b) | "a default has occurred, however, the initiation of the creditor-initiated insolvency resolution process was in contravention of section 58A or 58B" | "it shall, convert the creditor-initiated insolvency resolution process to corporate insolvency resolution process and pass an order as referred to in sub-clauses (i) to (v) of sub-section (1) of section 58H" |
Two drafting points should be read with the text. Clause (a) is printed as "a default has not occurred or both a default has not occurred and the initiation ... was in contravention"; the words repeat the first limb and are quoted as printed without correction. And clause (b) and section 58H(2) refer to "sub-clauses (i) to (v) of sub-section (1) of section 58H", whereas section 58H(1) prints those items as (i) to (v) after its clauses (a) to (c); the cross-reference is quoted as printed.
The difference between the two outcomes is that "may" in clause (a) leaves the declaration of voidness to the Adjudicating Authority, while "shall" in clause (b) requires conversion. The conversion order is described in the article on section 58H.
Section 58C(3): thirty days for the order
"The Adjudicating Authority shall pass an order under sub-section (2), within a period of thirty days from the date of receipt of the application under sub-section (1)." The proviso adds that "if the Adjudicating Authority has not passed an order within such period, it shall record the reasons for such delay in writing." The section does not provide what follows from delay other than the written reasons.
Section 58D(1): one hundred and fifty days
"Subject to sub-section (2), the creditor-initiated insolvency resolution process shall be completed within a period of one hundred and fifty days from the creditor-initiated insolvency commencement date." The same date starts the thirty days in section 58C and the one hundred and fifty days in section 58D.
Section 58D(2): one extension
"The Adjudicating Authority may, on the application made by the resolution professional, with the approval of the committee of creditors, by a vote of not less than sixty-six per cent. of the voting share, extend the period under sub-section (1), by a period of not more than forty-five days." The proviso: "any extension of the period of the creditor-initiated insolvency resolution process under this section shall not be granted more than once."
| Step | Figure as printed |
|---|---|
| Base period | one hundred and fifty days from the creditor-initiated insolvency commencement date |
| Who applies for extension | the resolution professional, with approval of the committee of creditors |
| Vote | not less than sixty-six per cent. of the voting share |
| Extension | not more than forty-five days |
| Number of extensions | not more than once |
Section 58D(3): no plan approved
"Where no resolution plan is approved by the committee of creditors within the period stipulated in sub-section (1) or the extended period under sub-section (2), the Adjudicating Authority shall pass an order under sub-section (1) of section 58H." That order is the conversion order, so a process that does not produce an approved plan in time is converted into a corporate insolvency resolution process. The detail is in the article on section 58H; here it is enough to say the sub-section uses "shall".
How these sections work with the rest of the Chapter
Section 58C(1) refers to commencement "under section 58B"; the eligibility conditions are in section 58A. The resolution professional appointed under section 58B(3) carries the duties set out in the next articles, sections 58E and 58F. The sixty-six per cent. vote is the same measure as in sections 54-O and 54K for the pre-packaged process; the sections are separate, and their words differ.
Example
Lotus Exports Pvt Ltd receives a notice and learns that a public announcement of a creditor-initiated process has been made on 1 of the month. Lotus believes no default occurred. On the twentieth day it applies under section 58C(1). If the Adjudicating Authority is satisfied that a default has not occurred, it may declare the commencement void ab-initio. If it finds that a default occurred but the creditor did not comply with section 58B, it must convert the process to a corporate insolvency resolution process. The order is due within thirty days of receipt of the application, or reasons for the delay are to be recorded. The names and dates are invented.
Commencement and sources
The Amendment Act, 2026 comes into force on the date or dates the Central Government notifies; the notification is not in the texts consulted, so check whether these sections have been notified. The details of the process are left to rules and regulations that are not in the texts consulted.
Amendments and notifications made after 12 August 2021, other than the Amendment Act, 2026, are not in the texts consulted and should be checked.
Need help responding to a creditor-initiated process?
A corporate debtor has only thirty days from the announcement to object, and a creditor that has started the process wants to be sure its approvals and notices will stand up. Our team can help either side prepare through legal dispute resolution.
Key takeaways
- The corporate debtor may apply within thirty days of the creditor-initiated insolvency commencement date.
- No default: the Adjudicating Authority may declare the commencement void ab-initio. Default but breach of section 58A or 58B: it shall convert to a corporate insolvency resolution process.
- The order is due within thirty days of receipt of the application, with written reasons for any delay.
- The process is to be completed within one hundred and fifty days; one extension of not more than forty-five days on a sixty-six per cent. vote.
- If no plan is approved in time, the Adjudicating Authority passes an order under section 58H(1).
Read next
- Section 58B: initiation by a financial creditor
- Sections 58E and 58F: the resolution professional and management of the debtor
- Section 58H: conversion into a corporate insolvency resolution process
- Debtor in possession under sections 58A to 58K
Disclaimer: Based on the IBBI consolidated text of the Insolvency and Bankruptcy Code, 2016 amended up to 12 August 2021 and on the Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026), which comes into force on the date or dates notified by the Central Government, as consulted on 2 October 2026. It explains the words of the statute only; commencement notifications, other amendments made after 12 August 2021, notified thresholds, the rules and IBBI regulations, and the way tribunals and courts apply these sections should be checked. This article is general information, not legal advice; check the official text before acting.