Corporate Insolvency Resolution Process (CIRP)

Corporate Insolvency Resolution Process (CIRP)

Corporate Insolvency Resolution process (CIRP) is a mechanism under the Insolvency and Bankruptcy Code (IBC) to facilitate a transparent and quick debt resolution process for recovery of non-performing assets (NPAs). A financial or an operational creditor or the corporate debtor (the borrower) itself may file an application before the NCLT to initiate the insolvency proceedings against the borrower company in case of default or failure to pay the debt which has become due (debt owed must be minimum Rs.1 Lakh). A Resolution Professional is appointed and a committee of creditors (CoC) is constituted which will approve the resolution plan.