Sarthak ( Mumbai )
27-Sep-2026 07:21 PM
“The procedure for application to initiate Insolvency Resolution Process against a Corporate Debtor by operational creditor differs with application by financial creditors.”
The model answer includes: Existence of default is required in case of Financial Creditor whereas non-existence of dispute is necessary in case of Operational Creditor. But sir default should be there in case both
Hello Sarthak, Answer to your question: In CIRP by FC there is term called EXISTANCE OF DEFAULT, which is required for both cases. In CIRP by OC the term Non existance of DISPUTE is there, which means there should be a default but on which there should not be the dispute for this default. You are confused between default and dispute. Both the terms are different and Default should be there in both cases whereas Dispute is there in only case of OC.
Answer given by Shubhamm Sir at 29-Sep-2026 06:01 PM