Under IBC, 2016 there are two types of creditors namely financial and operational creditors. At present the process for recovering of debt is laid down under Insolvency and Bankruptcy Code, 2016 if there is a minimum default of Rs. 1 Lakh. The process can be initiated by any of the above class of creditors by filing an application under Section-9 before NCLT in Form-6 along with necessary evidences and documents. Fee for such an application is Rs. 2000. On receipt of application, NCLT will consider the same and will appoint an Interim Resolution Professional who will take over the charge of management of defaulting debtor.

IRP will initiate a corporate insolvency resolution process(CIRP)and will ensure there is maximum realization of assets to pay off the debt. The applicant i.e. the creditor will bear all the necessary costs and expenses for carrying out the process.