Question 1 When will the provisions of insolvency and liquidation of corporate persons be applicable on a corporate person? Answer The provisions relating to the insolvency and liquidation of corporate debtors shall be applicable only when the amount of the default is one lakh rupees or more. However, the Central Government may, by notification, specify the minimum amount of default of higher value which shall not be more than one crore rupees. Question 2 Who may initiate corporate insolvency process against a corporate person? Answer The corporate insolvency process may be initiated against any defaulting corporate debtor by - (a) Financial creditor, (b) Operational creditor (c) Corporate debtor Question 3 What is the Insolvency Resolution Process for financial creditors? Answer A financial creditor either itself or along with other financial creditors may lodge an application before the Adjudicating Authority (National Company Law Tribunal) for initiating corporate insolvency resolu