(1) An application for initiating pre-packaged insolvency resolution process may be made in respect of a corporate debtor classified as a micro, small or medium enterprise under sub-section (1) of section 7 of the Micro, Small and Medium Enterprises Development Act, 2006.

(2) A corporate debtor shall be eligible to make an application under sub-section (1) to initiate a pre-packaged insolvency resolution process if—

1. it has committed a default referred to in section 4;
2. an application for initiating a corporate insolvency resolution process is not pending against the corporate debtor;
3. a corporate insolvency resolution process or a pre-packaged insolvency resolution process is not ongoing against the corporate debtor;
4. no order has been made for liquidation under section 33 against the corporate debtor;
5. it is eligible to submit a resolution plan under section 29A;
6. the financial creditors of the corporate debtor, not being its related parties, representing not less than sixty-six per cent. in value of the financial debt due to such creditors, have proposed the name of an insolvency professional to act as resolution professional for the pre-packaged insolvency resolution process and the corporate debtor has obtained approval for the same in the manner as may be specified; and
7. the members of the corporate debtor have passed a special resolution, or at least three-fourth of the total number of partners, as the case may be, of the corporate debtor have passed a resolution, approving the filing of the application for initiating the pre-packaged insolvency resolution process.

(3) A corporate debtor shall not be eligible to make an application to initiate a pre-packaged insolvency resolution process, if it has completed a pre-packaged insolvency resolution process or a corporate insolvency resolution process during the period of three years preceding the initiation date.

(4) Where any provision of this Chapter requires the approval of the financial creditors of the corporate debtor, not being its related parties, and such corporate debtor does not have any financial creditors, the financial creditors shall be taken to have approved such proposal.