This page is for general information. It is not legal, tax or investment advice. Every NPA / SARFAESI / DRT matter is fact-specific — speak to a qualified advisor before acting.
Section 7 — filed by $State Bank of India as financial creditor
State Bank of India may file at the NCLT to admit the corporate debtor into CIRP (Corporate Insolvency Resolution Process) once default exceeds Rs. 1 crore. Once admitted, moratorium under Section 14 stops all recovery — including SARFAESI, DRT and cheque-bounce cases.
Section 9 — operational creditor filing
Vendors, employees and statutory dues can trigger CIRP through Section 9, which can complicate {bank} recovery timelines.
Section 10 — corporate debtor's own filing
Borrower-initiated CIRP — often used strategically to control the resolution timeline and prevent State Bank of India-driven asset dilution.
CIRP timeline
180 days (extendable to 330) for a Resolution Plan. Failure results in liquidation under Section 33.
Resolution Plan vs Liquidation
A Resolution Plan approved by the Committee of Creditors (State Bank of India usually the largest voter) preserves the business; liquidation dissolves it and distributes proceeds per the waterfall in Section 53.
Personal guarantors under IBC
Personal guarantors to a corporate debtor face parallel insolvency proceedings under Part III of IBC once State Bank of India invokes the guarantee — a critical exposure directors and promoters often overlook.
Pre-Pack Insolvency (PPIRP)
Available to MSMEs — a faster, borrower-led resolution process with a shorter 120-day cap that can lock in a settlement while keeping management in place.