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Corporate Insolvency Resolution Process is a recovery mechanism for creditors. If a corporate becomes insolvent, a financial creditor, an operational creditor, or the corporate itself may initiate CIRP. The insolvency resolution process (IRP) is a one under the Insolvency and Bankruptcy Code, 2016, where the National Company Law Tribunal (NCLT) initiates a corporate insolvency resolution process (CIRP) when a company defaults on making payment to its creditors. A financial creditor, operational creditor or corporate itself can file an application before NCLT for initiating IRP when default has occurred.
*THE INSOLVENCY AND BANKRUPTCY CODE, 2016
Model time-line for Corporate Insolvency Resolution Process
| Section */Regulation */ Form | Description of Activity | Norm | Timeline | Clarification points |
| Section 16(1) | Commencement of CIRP and appointment of IRP | …. | T | |
| Regulation 6(1) | Public announcement (Form A) inviting claims | Within 3 Days of Appointment of IRP | T+3 | |
| IP-1 | Consent to accept assignment as I RP, the details of IP and the Applicant, the details of the person which will undergo the process, terms of consent, terms of engagement, etc. | Within three days of signing of Form-2/Form AA | Form-2 is the written communication from the insolvency professional for appointment as an interim resolution professional. | |
| CIRP 1 | This includes details of IRP, CD, and the Applicant; admission of application by AA; public announcement; details of suggested Authorised Representatives; non-compliances with the provisions of the Code and other laws applicable to the CD etc. | Within 7 days of making the Public Announcement | ||
| Regulation 12 (1) | Submission of claims | For 14 Days from Appointment of IRP | T+14 | It is the Last date mentioned in the public announcement |
| Regulation 13(1) | Verification of claims received under regulation 12(1) | Within 7 days from the receipt of the claim | T+21 | |
| Section 21(6A) (b) / Regulation 16A | Application for appointment of authorised representative of the creditors to AA | Within 2 days from verification of claims received | T+23 | |
| Regulation 17(1) | Report certifying constitution of CoC | Within 2 days from verification of claims received | T+23 | |
| INC-28 | NCLT order approving as IRP | Within 30 days of the NCLT Order | To be filed to ROC | |
| Central Goods and Services Tax Act, 2017 | New GST Registration | Within 30 days of the appointment of the I RP/RP | T+30 | |
| Central Goods and Services Tax Act, 2017 | GST Return | First return from the date on which CD becomes liable to registration till the date on which registration has been granted | CD eligible to avail input tax credit on invoices subject to conditions | |
| Section 22(1) / Regulation 19(2) | 1st meeting of the CoC | Within 7 days of filing of the report certifying constitution of the CoC, with five days’ notice. | T+30 | |
| Section 22(2) | Resolution to appoint RP by the CoC | In the first meeting of the CoC | T+30 | |
| Section 16(5) | Appointment of RP | On approval by the AA | …. | |
| Regulation 17(3) | IRP performs the functions of RP till the RP is appointed. | T+40 | If RP is not appointed by 40th day of commencement | |
| CIRP 2 | This includes details of Authorised Representative selected by IRPs for a class of creditors; taking over management of the CD; receipt and verification of claims; constitution of CoC, first meeting of CoC; confirmation /replacement of IRP; applications seeking cooperation of management (if any); expenses incurred on or by IRP; relationship of IRP with the CD, Financial Creditors and Professionals; support services taken from IPE; non-compliances with the provisions of the Code and other laws applicable to the CD; etc. |
Within seven days of confirmation/ replacement of IRP by CoC | ||
| Regulation 27 | Appointment of Valuer | Within 7 days of appointment of RP, but not later than 47th day of commencement. | T+47 | |
| Regulation 35A | RP to form an opinion on preferential and other transactions | Within 75 days of the
commencement |
T+75 | |
| RP to make a determination on preferential and other transactions | Within 115 days of commencement | T+115 | ||
| RP to file applications to AA for appropriate relief | Within 135 days of commencement | T+135 | ||
| Regulation 36 (1) | Submission of IM to CoC | Within 2 weeks of appointment of RP, but not later than 54th day of commencement | T+54 | |
| CIRP 3 | This includes details of RP; details of registered valuers; handing over of records of CD by I RP to RP; taking over management of the CD; applications seeking cooperation of management (if any); details in IM; non-compliances with the provisions of the Code and other laws applicable to the CD;etc. | Within seven days of issue of IM to members of CoC | ||
| Regulation 36A | Publish Form G | Within 75 days of commencement | T+75 | In one English and one regional
language newspaper with wide circulation at the location of the registered office and principal office, if any, of the corporate debtor and any other location where in the opinion of the resolution professional, the corporate debtor conducts material business operations; + on the website, if any, of the corporate debtor |
| Invitation of EoI | ||||
| Submission of EoI | T+90 | At least 15 days from issue of EoI | ||
| Provisional List of RAs by RP | Within 10 days from the last day of receipt of EoI | T+100 | ||
| Submission of objections to provisional list | For 5 days from the date of provisional list | T+105 | ||
| Final List of RAs by RP | Within 10 days of the receipt of objections | T+115 | ||
| Regulation 36B | Request for resolution plans, including Evaluation Matrix and IM | Within 5 days of the issue of the provisional list | T+105 | |
| Receipt of Resolution Plans | At least 30 days from Request for resolution plans | T+135 | ||
| CIRP 4 | This includes expression of interest; RFRP and modification thereof; evaluation matrix and modification thereof; non-compliances with the provisions of the Code and other laws applicable to the CD; etc. | Within seven days of the issue of Request for resolution plan | ||
| Regulation 39(4) | Submission of CoC approved Resolution Plan to AA | T+165 | As soon as approved by the CoC | |
| Section 31(1) | Approval of resolution plan by AA | T=180 | ||
| CIRP 5 | This includes updated list of claimants;updated CoC; details of the resolution applicants; details of resolution plans received; details of approval or rejection of resolution plans by CoC; application filed with AA for approval of resolution plan; details of resolution plan approved by the AA; initiation of liquidation, if applicable; expenses incurred on or by RP; appointment of professionals and the terms of appointment; relationship of the professionals and the terms of appointment; relationship of the RP with the CD, Financial Creditors, and Professionals; support services taken from IPE; non-compliances with the provisions of the Code and other laws applicable to the CD; etc. | Within seven days of the approval or rejection of the resolution plan | ||
| CIRP 6 | Event Specific: This includes:
a. Filing of application in respect of preferential transaction, undervalued transaction, fraudulent transaction, and extortionate transaction; b. Raising interim finance; c. Commencement of insolvency resolution process of guarantors of the CD; d. Extension of period of CIRP and exclusion of time; e. Premature closure of CIRP (appeal, settlement, withdrawal, etc.); f. Request for liquidation before completion of CIRP; and g. Non implementation of resolution plan, as approved by the AA. |
Within seven days of the occurrence of the relevant event. |
- AA: Adjudicating Authority
- AR: Authorised Representative
- CI RP: Corporate Insolvency Resolution Process
- CoC: Committee of Creditors
- EoI: Expression of Interest
- IM: Information Memorandum
- IRP: Interim Resolution Professional;
- RA: Resolution Applicant
- RP: Resolution Professional
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