For Plea to Initiate Insolvency Process, a Certificate from Financial lnstitutions confirming Non-Payment of Debt is mandatory:

Filing of a copy of certificate from ‘Financial Institution’ maintaining accounts of Operational Creditor confirming that there is no payment of unpaid operational debt by ‘Corporate Debtor’ as prescribed under clause (c) of sub-section (3) of section 9 is mandatory.  On a bare perusal of the provisions [Section 9 of the Insolvency and Bankruptcy Code, 2016, read with rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority)] Rules, 2016), it is clear that furnishing of certificate from the relevant financial institution by applicant inter alia is a mandatory requirement under section 9 of the code and in the absence of such certificate from the financial institution maintaining accounts of the operational creditor, the application filed by the applicant is clearly incomplete.

November 18th, 2017