IBC Section 57: Manner of initiating fast track corporate insolvency resolution process

Section 57 of Insolvency and Bankruptcy Code, 2016: Manner of initiating fast track corporate insolvency resolution process

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

An application for fast track corporate insolvency resolution process may be filed by a creditor or corporate debtor as the case may be, along with-

(a) the proof of the existence of default as evidenced by records available with an information utility or such other means as may be specified by the Board; and

(b) such other information as may be specified by the Board to establish that the corporate debtor is eligible for fast track corporate insolvency resolution process.

Legal Commentary & Landmark Judgments: Section 57

Section 57 prescribes the formal procedural manner and documentation required for initiating the Fast Track Corporate Insolvency Resolution Process by a creditor or the corporate debtor.

Application Documentation: An application for fast track CIRP shall be filed in such form and manner and accompanied by such fee as may be specified.
Proof of Default: Must be accompanied by proof of default as recorded by an Information Utility or such other specified proof.
Eligibility Certification: Must establish that the corporate debtor falls strictly within the notified eligibility criteria under Section 55 (startup / small company certificate).

Key Landmark Precedents:

Innoventive Industries Ltd. v. ICICI Bank (2018) 1 SCC 407: The Supreme Court affirmed that filing requirements under the Code demand strict proof of debt and default through objective institutional records.
Swiss Ribbons Pvt. Ltd. v. Union of India (2019) 4 SCC 17: Held that procedural documentation under Section 57 ensures that only eligible corporate debtors enter the accelerated track.

Courtroom Practice & Strategic Litigation Guidance:

Attach the DPIIT Startup recognition certificate or MCA audited balance sheet confirming 'small company' status under Section 2(85) of Companies Act along with the Section 57 petition to prove fast-track eligibility.