CIRP is a structured legal process under the Insolvency and Bankruptcy Code (IBC), 2016, where a financially distressed company is either resolved through a new resolution plan or liquidated, within a time-bound framework of 180 to 330 days.

CIRP can be initiated by:

• Corporate Debtor itself under Section 10

• Financial Creditors under Section 7

• Operational Creditors under Section 9

NCLT is the adjudicating authority that admits CIRP applications, appoints Interim Resolution Professionals, approves resolution plans, and passes liquidation orders.

The IRP is appointed by NCLT to take control of the corporate debtor’s management, verify claims, form the Committee of Creditors (CoC), and manage day-to-day affairs during the initial phase.

CoC is a body of financial creditors formed by the IRP, which makes key decisions regarding the continuation of CIRP, approval of resolution plans, or moving to liquidation.

A resolution applicant is any person (including individuals or companies) who submits a resolution plan for the revival of the corporate debtor during CIRP.

• Admittance to CIRP: Within 14 days
• Appointment of IRP: Within 14 days from admission
• Claims Verification & CoC Formation: Within 30 days
• Resolution Plan Submission: Within 90-180 days
• Maximum Timeline (with extension): 330 days total

Once CIRP is initiated, a moratorium is declared under Section 14 of IBC. All legal proceedings, recovery actions, and enforcement of security interest are stayed.

If no viable resolution plan is approved within the prescribed time, the company moves into liquidation

Creditors must submit their claims using prescribed forms:

• Form B – for operational creditors
• Form C – for financial creditors
• Form CA – for financial creditors in class
• Form D – for employees and workmen
• Forms must be submitted to the IRP/RP within the stipulated period from the commencement of CIRP.

Voting shares are based on the financial value of claims admitted by the IRP/RP. Financial creditors have voting power proportionate to their admitted debt.

No, only financial creditors are part of the CoC. However, operational creditors can attend meetings (without voting rights) if their aggregate dues are more than 10% of the total debt.

A resolution plan typically includes:

• Debt restructuring proposals
• Repayment timelines
• Operational changes
• Proposed management or acquisition terms

The CoC approves the plan by a vote of at least 66% of voting shares, after which it is submitted to NCLT for final approval.

Liquidation is the process of selling off the assets of the corporate debtor to pay off creditors, in a priority defined under the IBC waterfall mechanism.

CIRP forms like CIRP-1 to CIRP-8, VL-1, LIQ-1, etc., are used for regular reporting and compliance by IRPs/RPs/Liquidators to the IBBI and NCLT.

CIRP primarily applies to corporate entities, but provisions also exist for insolvency of personal guarantors, proprietorships, and partnerships under different IBC chapters.

Non-cooperation by directors, promoters, or management during CIRP can result in penalties and even criminal prosecution under IBC Sections 70–75.

Absolutely. We assist financial and operational creditors, corporate debtors, and insolvency professionals with:

• Compliance with all IBC filings and documentation
• Filing CIRP applications
• Preparing resolution plans
• Legal representation before NCLT/NCLAT

You can contact us via our Contact Page, email us at contact@corplegus.com, or call us directly. We offer free initial consultations and complete legal support through the insolvency journey.