What this covers: Practical document checklist for financial creditors preparing to file a Section 7 application before the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code, 2016 (IBC). Section 7 is the primary route for banks, NBFCs, and other financial creditors to initiate the Corporate Insolvency Resolution Process (CIRP) against a defaulting corporate debtor.
Statutory framework: Section 7, IBC 2016; Rule 4 & Form 1, Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (AAA Rules 2016); NCLT (Procedure) Rules 2016.
Checklist
A. Core Application Documents
1. Form 1, Application under Section 7
Document: Form 1 as prescribed under Rule 4 of the AAA Rules 2016, duly filled and signed
Why required: The prescribed statutory form for a financial creditor’s application; NCLT will not accept applications not in this form
Format requirement: Must be in the prescribed format; signed by the applicant’s authorised signatory; two sets required (original + copy)
2. Affidavit by Authorised Signatory (Part of Form 1)
Document: Affidavit affirming the contents of the application
Why required: Verification of the facts stated in the application
Format requirement: Must be sworn before a Notary/Magistrate; must state the signatory’s designation and authority to file
3. Board Resolution Authorising Filing
Document: Certified copy of Board Resolution of the applicant (bank/NBFC/financial institution) authorising the filing of the Section 7 application and identifying the authorised representative
Why required: Establishes that the financial creditor is duly authorised to file; required to verify locus standi
Format requirement: Must be certified as a true copy by the Company Secretary or a Director of the applicant
B. Proof of Financial Debt
4. Executed Loan Agreement / Credit Facility Agreement
Document: Original or certified copy of the loan agreement, facility letter, or agreement under which financial debt was disbursed
Why required: Establishes the existence of a “financial debt” as defined under Section 5(8) IBC (disbursement against consideration for time value of money)
Format requirement: Must be the signed original or a certified true copy; all annexures/schedules must be included
5. Sanction Letter
Document: Bank’s sanction letter accepted by the borrower (if separate from the loan agreement)
Why required: Establishes the terms on which the loan was sanctioned
6. Disbursement Evidence
Document: Bank statement, SWIFT message, or payment advice showing actual disbursement to the corporate debtor
Why required: Confirms that money was in fact disbursed (not just contracted)
7. Security Documents
Document: Mortgage deed, hypothecation agreement, guarantee deed (all executed security documents)
Why required: Part of the financial debt record; demonstrates the nature of the credit facility
C. Proof of Default
8. Statement of Account
Document: Statement of account showing all debits and credits from disbursement to the date of filing, certified by an officer of the bank
Why required: Establishes the outstanding amount of financial debt and the date of default
9. NPA Classification Evidence
Document: Internal bank notice or documentation showing the date on which the account was classified as NPA in accordance with RBI asset classification norms
Why required: Courts use the NPA date as evidence of default; Section 7(3)(a) requires the financial creditor to produce evidence of default
10. Demand Notice
Document: Copy of the demand notice sent to the corporate debtor and any guarantors demanding repayment of the outstanding amount, with proof of service
Why required: Demonstrates that the financial creditor has made demand before filing
D. Interim Resolution Professional
11. Written Consent of Proposed IRP (Form 2)
Document: Form 2 as prescribed under Rule 9 of the AAA Rules 2016, written consent of the proposed Interim Resolution Professional
Why required: Mandatory requirement; NCLT requires the applicant to nominate an IRP; without IRP consent, the application is defective
E. Corporate Debtor Information
12. Company Master Data from MCA21 Portal
Document: Printed screenshot or PDF of the corporate debtor’s company master data from the MCA21 portal, showing: CIN, date of incorporation, registered address, directors, authorised and paid-up share capital, status
Why required: Establishes the corporate identity of the debtor
13. Latest Annual Report / Financial Statements of Corporate Debtor
Document: Latest available audited financial statements of the corporate debtor
Why required: Assists the tribunal in assessing the company’s financial condition
F. Fees and Filing
14. Filing Fee
Document: Demand Draft / Online Payment Receipt for NCLT filing fee
Why required: Mandatory; without payment, the filing is not accepted
Format requirement: INR 25,000 (verify current fee schedule before filing); Demand Draft in favour of “Pay and Accounts Officer, Ministry of Corporate Affairs” payable at New Delhi
15. Index of Documents / Cover Letter
Document: A complete index listing all documents filed, with page numbers
Why required: Standard registry requirement; facilitates document tracking
Key Statutory References
| Provision | Subject |
|---|---|
| Section 7, IBC 2016 | Financial creditor’s right to file |
| Section 5(7) | Definition of “financial creditor” |
| Section 5(8) | Definition of “financial debt” |
| Section 3(12) | Definition of “default” |
| Rule 4, AAA Rules 2016 | Procedure for Section 7 application |
| Form 1, AAA Rules 2016 | Prescribed application form |
| Rule 9 / Form 2, AAA Rules 2016 | IRP consent form |
| Section 7(4) | NCLT’s 14-day order obligation |
This resource is for general information purposes only and does not constitute legal advice.