Corporate Insolvency Resolution Process (CIRP)

Time Frame

– The CIRP must be completed within 180 days, extendable by an additional 90 days (total 270 days).  

Benefits of CIRP

–Timely Resolution: Prevents prolonged litigation by setting strict timelines.  

–Maximizing Value: Enables restructuring of viable businesses and maximizes asset value.  

–Transparency: Ensures a fair and transparent process for all stakeholders.  

Why Choose Our CIRP Advisory Services?  

– Expert Guidance: Assistance in filing applications, drafting claims, and legal representation.  

– Resolution Planning: Crafting comprehensive and compliant resolution plans.  

– Liaison Services: Coordinating with IRPs, CoCs, and NCLT.  

– Compliance Assurance: Ensuring adherence to IBC regulations at every step.

The Corporate Insolvency Resolution Process (CIRP) is a mechanism under the Insolvency and Bankruptcy Code (IBC), 2016 in India that aims to resolve corporate insolvency in a time-bound manner. It is initiated when a corporate debtor defaults on repayment, providing an opportunity to restructure or liquidate the entity under the supervision of the National Company Law Tribunal (NCLT).  

Key Stages of CIRP

  1. Initiation of CIRP:

   – Triggered by creditors (financial or operational) or the corporate debtor itself when default occurs.  

   – Application is filed with the NCLT for initiating insolvency proceedings.  

  1. Appointment of Interim Resolution Professional (IRP): 

   – NCLT appoints an IRP to take charge of the corporate debtor’s affairs.  

   – The IRP manages operations and forms the Committee of Creditors (CoC).  

  1. Moratorium Period

   – A moratorium is declared, restricting any legal action against the corporate debtor during the resolution process.  

  1. Committee of Creditors (CoC):

   – Consists of all financial creditors of the corporate debtor.  

   – The CoC reviews the resolution plans and selects the best-suited plan for approval.  

  1. Resolution Plan Submission: 

   – Interested parties (Resolution Applicants) submit resolution plans to revive or restructure the company.  

   – The plan must comply with IBC guidelines and get CoC’s approval.  

  1. Approval by NCLT:

   – The selected resolution plan is submitted to the NCLT for final approval.  

   – If no resolution is possible, the company may go into liquidation.