Question 1

What is the CIRP timeline under the IBC?

Accepted Answer

The Corporate Insolvency Resolution Process must be completed within 180 days, extendable by 90 days, with an overall outer limit of 330 days including litigation. During this period a moratorium protects the corporate debtor and an Interim/Resolution Professional runs it as a going concern.

Question 2

Who can initiate insolvency proceedings?

Accepted Answer

A financial creditor (section 7), an operational creditor after a demand notice (section 9), or the corporate debtor itself (section 10) can apply to the NCLT, provided the default exceeds the ₹1 crore threshold. We assess admissibility and prepare or defend the application.

Question 3

What does a Resolution Professional do?

Accepted Answer

The RP takes custody of the corporate debtor's assets, runs it as a going concern, constitutes and reports to the Committee of Creditors, verifies claims, invites and examines resolution plans, and places the CoC-approved plan before the NCLT for approval — all under IBBI conduct standards.

Question 4

What is pre-packaged insolvency (PPIRP)?

Accepted Answer

Pre-pack is a faster, debtor-initiated resolution available to MSMEs, where a base resolution plan is negotiated before filing and approved by the NCLT within a compressed timeline, minimising business disruption and value erosion. Eligibility and the Swiss-challenge mechanism have specific conditions we navigate.

Question 5

Does personal-guarantor insolvency apply to promoters?

Accepted Answer

Yes. The IBC's provisions for insolvency of personal guarantors to corporate debtors allow creditors to proceed against promoters who guaranteed the company's debt, in coordination with the corporate process before the same NCLT. We advise both creditors and guarantors on exposure and strategy.

Question 6

How are creditors paid in liquidation?

Accepted Answer

Liquidation proceeds are distributed in the 'waterfall' order under section 53 — insolvency costs first, then secured creditors and workmen dues, employee dues, unsecured financial creditors, government dues, and finally any remaining stakeholders and equity. We compute entitlements and manage the distribution.

Insolvency & IBC

Insolvency & IBC services

Resolution & Process Management

Liquidation & Claims

Advisory

CIRP & NCLT Process

Specialised Insolvency

Forensic, Valuation & Registration

Selected insolvency & ibc engagements

Insolvency & IBC — frequently asked questions

Related practices

Industries we serve here

Speak to our Insolvency & IBC team