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 $South Indian Bank as financial creditor
South Indian Bank 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 South Indian Bank-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 (South Indian Bank 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 South Indian Bank 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.