Corporate Insolvency Resolution Process (CIRP): The Five Stages, Step by Step

The corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code, 2016 runs in five stages: initiation by a financial creditor, an operational creditor or the corporate debtor; admission by the National Company Law Tribunal (NCLT); commencement and interim management under an insolvency professional; approval of a resolution plan; and the outcome, which is either a successful resolution or liquidation.

The diagram below follows that sequence, with the section of the Code, the form and the voting threshold that attach to each step. Select a step to read what it involves. The diagram is a general guide to the statutory sequence and does not replace the text of the Code, the rules and regulations made under it, or a reading of the facts of an individual case.

Expositor(s): Adv. Stephin Sinu Oommen