Sections 6 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 6 names the three people who may start the corporate insolvency resolution process after a default. Section 10A suspended applications for certain defaults, and section 11 lists those who may not apply at all. This article reads them as per the IBBI consolidated text of the Code amended up to 12 August 2021, then the one change the Insolvency and Bankruptcy Code (Amendment) Act, 2026 makes to section 11.
Where a corporate debtor commits a default, a financial creditor, an operational creditor or the corporate debtor itself may initiate the process (section 6). Section 10A barred applications for defaults arising on or after 25 March 2020 for six months or such further period, not exceeding one year, as may be notified. Section 11 bars, among others, a corporate debtor already in a process, one that completed a process twelve months before the application, and one subject to a liquidation order.
Section 6: the three starting points
Section 6 reads: "Where any corporate debtor commits a default, a financial creditor, an operational creditor or the corporate debtor itself may initiate corporate insolvency resolution process in respect of such corporate debtor in the manner as provided under this Chapter." Default means non-payment of a debt that has become due and payable (section 3(12)). The manner differs: section 7 for a financial creditor, section 9 for an operational creditor and section 10 for the corporate debtor. Section 4 applies the Part where the minimum amount of the default is "one lakh rupees", and lets the Central Government specify by notification a higher minimum "which shall not be more than one crore rupees"; no notification is in the texts consulted, so the amount actually notified must be checked.
If you are a creditor weighing the route, a recovery suit and the insolvency route lead to different outcomes; we can help you compare the two on your documents.
Section 10A: suspension for defaults from 25 March 2020
Section 10A is introduced by the text with a footnote and is headed "Suspension of initiation of corporate insolvency resolution process". It reads: "Notwithstanding anything contained in sections 7, 9 and 10, no application for initiation of corporate insolvency resolution process of a corporate debtor shall be filed, for any default arising on or after 25th March, 2020 for a period of six months or such further period, not exceeding one year from such date, as may be notified in this behalf".
The proviso adds that "no application shall ever be filed for initiation of corporate insolvency resolution process of a corporate debtor for the said default occurring during the said period." The Explanation says that, for the removal of doubts, the section "shall not apply to any default committed under the said sections before 25th March, 2020".
Three points follow from the words printed:
- The section turns on the date the default arose, not the date of filing.
- The length of the bar is six months, or such further period, not exceeding one year from 25 March 2020, as may be notified. Whether a further period was notified is not in the texts consulted; check it.
- The proviso makes the bar permanent for a default occurring during the period.
Example. A supplier's invoice became due on 10 February 2020 and was unpaid. The Explanation says section 10A does not apply to a default committed before 25 March 2020. Another invoice that fell due on 10 April 2020 is a default arising on or after that date, so it falls within the six months the section prints; how far any further notified period reaches must be checked.
Section 11: persons not entitled to apply
Section 11 says the following "shall not be entitled to make an application to initiate corporate insolvency resolution process under this Chapter".
| Clause | Person |
|---|---|
| (a) | a corporate debtor undergoing a corporate insolvency resolution process or a pre-packaged insolvency resolution process |
| (aa) | a financial creditor or an operational creditor of a corporate debtor undergoing a pre-packaged insolvency resolution process |
| (b) | a corporate debtor having completed corporate insolvency resolution process twelve months preceding the date of making of the application |
| (ba) | a corporate debtor in respect of whom a resolution plan has been approved under Chapter III-A, twelve months preceding the date of making of the application |
| (c) | a corporate debtor or a financial creditor who has violated any of the terms of the resolution plan which was approved twelve months before the date of making of an application under this Chapter |
| (d) | a corporate debtor in respect of whom a liquidation order has been made |
Explanation I says a corporate debtor includes a corporate applicant in respect of such corporate debtor. Explanation II clarifies that nothing in the section shall prevent a corporate debtor referred to in clauses (a) to (d) from initiating corporate insolvency resolution process against another corporate debtor. Disposal of applications when a pre-pack application and a CIRP application are both pending is in section 11A, covered in a separate article.
What the Amendment Act, 2026 changes
Section 7 of the Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026) amends only section 11(ba).
| As printed in the consolidated text | After the 2026 Act |
|---|---|
| Clause (ba): "...a resolution plan has been approved under Chapter III-A, twelve months preceding the date of making of the application" | After the words "under Chapter III-A" the words "or Chapter IV-A" are inserted |
Chapter IV-A is the creditor-initiated insolvency resolution process that the 2026 Act inserts. 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 this change has been notified. Sections 6 and 10A are not touched by the 2026 Act. Amendments and notifications made after 12 August 2021, other than the Amendment Act, 2026, are not in the texts consulted and should be checked.
The Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 implement the application; the copy consulted is amended up to 24 September 2020.
Need help deciding whether an application is open to you?
Section 11 turns on dates and past processes, and a mistake can cost an application. A recovery suit or an insolvency filing should follow a check of the corporate debtor's history; our team can run that check with you.
Key takeaways
- A financial creditor, an operational creditor or the corporate debtor itself may start the process after a default.
- Section 10A bars applications for defaults arising on or after 25 March 2020 for six months or any further period notified, up to one year from that date; check what was notified.
- Section 11 bars a debtor already in a process or liquidation and a debtor that completed a process, or had a plan approved, twelve months earlier.
- The 2026 Act adds "or Chapter IV-A" to section 11(ba).
Read next
- Section 8: demand notice by an operational creditor
- Section 11A: when pre-pack and CIRP applications are both pending
- Who can file under the IBC: sections 6 and 7
- CIRP step-by-step guide
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.