Section 7 IBC Application: Document Checklist for Financial Creditors


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

  • 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

ProvisionSubject
Section 7, IBC 2016Financial 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 2016Procedure for Section 7 application
Form 1, AAA Rules 2016Prescribed application form
Rule 9 / Form 2, AAA Rules 2016IRP 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.


Further Reading