Cheatsheet
Corporate Insolvency Resolution Process (CIRP under IBC 2016)
Corporate & Commercial
Corporate & Commercial
Corporate Insolvency Resolution Process (CIRP under IBC 2016)From The Insolvency and Bankruptcy Code, 2016
1-Page procedural cheatsheet for the Corporate Insolvency Resolution Process (CIRP) under IBC 2016, covering default triggers, moratorium, CoC voting, and approval versus liquidation.
6 steps · 4 deadlines
Step by step
- 1
Trigger & Application
Default threshold of ₹1 Crore. Financial creditors apply under s. 7, operational creditors serve 10-day demand notice and apply under s. 9, or corporate debtor self-applies under s. 10.
- 2
Admission & Moratorium
NCLT admits application, declares moratorium under s. 14 prohibiting lawsuits, asset transfers, and debt enforcement, and appoints Interim Resolution Professional (IRP).
- 3
CoC Constitution
IRP collates claims, takes custody of assets, and constitutes the Committee of Creditors (CoC) comprised of financial creditors based on their voting share.
- 4
Resolution Plans
RP issues Information Memorandum and invites Expression of Interest. Eligible resolution applicants (not barred by s. 29A) submit revival plans.
- 5
CoC Voting & Approval
CoC evaluates feasibility and viability. Approval requires a minimum of 66% voting share of financial creditors.
- 6
NCLT Order
If approved plan complies with statutory norms, NCLT approves it (binding on all stakeholders). If no plan is approved within 180/330 days, liquidation is ordered.
Deadlines
CIRP Total Duration
180 days (+ 90 days extension, mandatory cap of 330 days including litigation)
NCLT Admission of Application
Within 14 days of filing
Public announcement of CIRP
Within 3 days of IRP appointment
Submission of claims by creditors
Within 14 days from public announcement
Sections at a glance
| Subject | Provision |
|---|---|
| Financial Creditor Application | IBC Section 7 → |
| Operational Creditor Demand Notice & Application | IBC Section 8 →IBC Section 9 → |
| Corporate Debtor Voluntary CIRP | IBC Section 10 → |
| Moratorium & Protection of Assets | IBC Section 14 → |
| Interim Resolution Professional | IBC Section 16 → |
| Committee of Creditors (CoC) | IBC Section 21 → |
| Approval of Resolution Plan (66% vote) | IBC Section 30 → |
| Order of Liquidation | IBC Section 33 → |