Section 10 of the IBC: Insolvency by the Corporate Applicant Itself (2026)
Section 10 of the Insolvency and Bankruptcy Code, 2016 lets a company start its own insolvency as a corporate applicant. This explains who can file, the documents, the authorisation needed, and what the National Company Law Tribunal checks. Last verified October 2026.
Explainer · Insolvency · IBC
Section 10 of the Insolvency and Bankruptcy Code, 2016 (IBC) is the route by which a company starts its own insolvency. Instead of waiting for a bank or a supplier to drag it to the National Company Law Tribunal (NCLT), the company itself files as a corporate applicant. It is used when the management accepts the company has defaulted and wants a structured, time-bound resolution. This explainer sets out who can file under Section 10, the minimum default, the documents and the internal authorisation needed, and what the NCLT checks before it admits the case. Last verified October 2026.
- What it is: Section 10 lets a company file its own corporate insolvency as a corporate applicant before the NCLT.
- Default needed: a default of at least Rs 1 crore, the same threshold as the creditor routes.
- Authorisation: usually a special resolution of members (or three-fourths of partners for an LLP), plus a proposed resolution professional with consent.
- Decision: the NCLT should admit or reject within 14 days, a period the Supreme Court treats as directory.
01Why a company would file against itself
It sounds strange that a company would ask a tribunal to put it into insolvency. But there is a logic. Once default is certain, delay only destroys value. A promoter who waits for creditors to file loses control of the timing and the narrative.
Section 10 lets the company take the first step. It can bring the matter under one forum and one clock before a scattered set of recovery suits does more damage. Getting the filing right matters, because a defective Section 10 application is easy to reject.
02What Section 10 allows
Section 10 allows a corporate debtor that has committed a default to file an application to initiate its own corporate insolvency resolution process (CIRP) before the NCLT.
Like the creditor routes, a Section 10 application needs a default, and the minimum default to file is Rs 1 crore, raised from Rs 1 lakh by the notification of 24 March 2020. The difference is who files: here it is the company itself, acting as the corporate applicant.
Section 7, 9 or 10
A financial creditor files under Section 7 and an operational creditor under Section 9. Section 10 is the mirror image: the corporate debtor files against itself. All three go to the same forum, the NCLT, and all three need a default of at least Rs 1 crore.
03Who can file and the authorisation
The applicant is the corporate debtor, acting through a person authorised to do so. The company cannot file on a whim: it needs proper internal authorisation.
- For a company, the filing is usually backed by a special resolution passed by the members, or a resolution of at least three-fourths of the partners for a limited liability partnership.
- The board or the authorised person then files the application and signs the required documents.
Without this authorisation, the application is open to challenge, so it is a point the NCLT looks at closely.
04Documents and the form
A Section 10 application is filed in the prescribed form (Form 6 under the adjudicating authority rules) with supporting material, which generally includes:
- the books of account and other documents showing the default;
- the name of the proposed interim resolution professional, with their written consent; and
- the special resolution or partners resolution authorising the filing.
The company proposes the interim resolution professional, which is a practical advantage of filing first. The application must be complete, because an incomplete application is given a short chance to be cured and can otherwise be rejected.
05What the NCLT checks
On a Section 10 application, the NCLT checks a short list:
- that there is a default of at least the threshold amount;
- that the application is complete and in the correct form; and
- that no disciplinary proceeding is pending against the proposed resolution professional.
The NCLT should admit or reject the application within 14 days. The Supreme Court has held that this 14-day period is directory, not mandatory, so a short delay by the Tribunal does not defeat the application. If admitted, the CIRP begins, the moratorium comes up, and the Committee of Creditors is formed.
There is one point a corporate applicant must weigh before filing. Once the CIRP is admitted, control passes from the board to the interim resolution professional, and the promoter cannot simply withdraw the case at will. A withdrawal after admission needs the approval of the Committee of Creditors by the high threshold the Code sets. So a Section 10 filing is a serious, hard-to-reverse step, not a tactic to buy time. The decision to file should be taken only after the company is sure that resolution, and not mere delay, is the real goal.
06Where Claw fits
Claw is an all-in-one legaltech platform for Indian advocates, law firms, and corporate legal teams, combining AI-based case search, an AI legal assistant (Legal GPT), case management, and compliance automation across all Indian courts and tribunals.
A Section 10 filing sets off a CIRP that quickly builds up orders and listings at the NCLT, with appeals that often carry on to the NCLAT. Claw keeps pace with it: it follows the cases, orders and hearing dates across 9,102 courts, benches and forums, so you can watch a Section 10 matter by the company name or the advocate on record. Behind that, Claw searches more than 30 crore judgments and answers in under 5 seconds, letting you pull how different benches have read Section 10 on authorisation and on completeness of the application. The case papers you load are kept out of its AI model training.
Set up a free Claw account and track your Section 10 matter by party or advocate name. To search the wider body of law, see case search across Indian courts.
07Sources and further reading
- Insolvency and Bankruptcy Board of India (IBC and CIRP regulations): ibbi.gov.in
- India Code (official text of the IBC, 2016): indiacode.nic.in
- Ministry of Corporate Affairs (default threshold notification): mca.gov.in
- Claw: clawlaw.in
This explainer is general information, not legal advice. The Code and its regulations change often, so check the current text and take advice from counsel before you act.
08Frequently asked questions
What is Section 10 of the IBC?
Section 10 allows a corporate debtor that has defaulted to file an application itself, as a corporate applicant, to start its own corporate insolvency resolution process (CIRP) before the National Company Law Tribunal. It is the companys own route into insolvency.
What is the minimum default to file under Section 10?
A default of at least Rs 1 crore, the threshold set by the notification of 24 March 2020. This is the same minimum that applies to the financial creditor route under Section 7 and the operational creditor route under Section 9.
What authorisation does a company need to file under Section 10?
The filing usually needs a special resolution passed by the members, or a resolution of at least three-fourths of the partners for a limited liability partnership. Without proper authorisation, the application can be challenged, and the NCLT examines this point.
What documents go with a Section 10 application?
The application is filed in the prescribed form with the books of account and records showing the default, the name and written consent of the proposed interim resolution professional, and the resolution authorising the filing. An incomplete application can be rejected after a short chance to cure it.
How long does the NCLT take to decide?
The NCLT should admit or reject a Section 10 application within 14 days. The Supreme Court has held this period is directory, not mandatory, so a short delay by the Tribunal does not by itself defeat the application.
Can I track a Section 10 matter in Claw?
Yes. Claw follows the cases, orders and hearing dates for a Section 10 matter at the NCLT and the higher courts by party or advocate name across 9,102 courts, benches and forums, and searches more than 30 crore judgments in under 5 seconds. It tracks and researches the matter but does not give legal advice.