The Corporate Insolvency Resolution Process (CIRP): Stages and Timeline (2026)
A plain-English walk through the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016: who can start it, the stages from admission to a resolution plan, and the 180, 270 and 330 day timelines. Last verified October 2026.
Explainer · Insolvency · IBC
The Corporate Insolvency Resolution Process (CIRP) is the main rescue route under the Insolvency and Bankruptcy Code, 2016 (IBC). It is heard by the National Company Law Tribunal (NCLT). The aim is simple: give a defaulting company a fixed, time-bound chance to be saved through a resolution plan, and if that fails, move it to liquidation. This guide sets out who can start a CIRP, the stages from admission to an approved plan, and the 180, 270 and 330 day timelines that control it. Last verified October 2026.
- Forum: the National Company Law Tribunal (NCLT) hears every CIRP; appeals go to the NCLAT and then the Supreme Court.
- Who can start it: a financial creditor (Section 7), an operational creditor (Section 9), or the company itself (Section 10). Minimum default to file is Rs 1 crore.
- Timeline: 180 days, extendable once by 90 days on a 66% CoC vote, with a 330 day outer limit that includes litigation.
- Outcome: an approved resolution plan under Section 31, or liquidation if no plan is approved in time.
01Why a clear CIRP roadmap matters
A company in default is not a single event. It is a chain of deadlines, filings and votes that run in a fixed order. Miss the order, and a creditor can lose its place at the table, a promoter can lose control, and an asset can lose value while everyone waits.
The CIRP was built to stop that drift. It puts the company under one process, under one forum, with one clock. For a creditor, an advocate or a resolution professional, the real skill is knowing what happens at each stage, who decides, and by when. That is what this guide maps.
02What the CIRP is and who can start it
The CIRP is the process under the IBC that decides whether a defaulting company is rescued or liquidated. It can be started only when there is a default, and the minimum default to file is Rs 1 crore, raised from Rs 1 lakh by a government notification dated 24 March 2020.
Three kinds of applicant can trigger it before the NCLT:
- A financial creditor (such as a bank or lender) under Section 7 of the IBC.
- An operational creditor (such as a supplier or employee) under Section 9, after first sending a demand notice under Section 8.
- The company itself, as a corporate applicant, under Section 10 of the IBC.
One forum, one clock
Every CIRP is heard by the National Company Law Tribunal (NCLT). From the date the Tribunal admits the application, the insolvency commencement date is set, and the statutory timeline starts to run.
03The stages, step by step
The CIRP moves through a settled sequence. Each stage feeds the next.
- Admission: the NCLT checks the application. For a financial creditor it looks for a debt and a default. If satisfied, it admits the case and declares the insolvency commencement date.
- Interim Resolution Professional (IRP): the Tribunal appoints an IRP, who takes over the management of the company. The board stands suspended.
- Moratorium (Section 14): a legal shield comes up at once. Suits and recovery actions against the company are stayed, security cannot be enforced, and assets cannot be transferred, so the company is protected while the process runs.
- Public announcement and claims: the IRP invites claims from all creditors and verifies them.
- Committee of Creditors (Section 21): the IRP forms the Committee of Creditors (CoC) from the financial creditors. The CoC confirms or replaces the IRP as the Resolution Professional (RP).
- Information and invitation: the RP prepares an information memorandum and invites expressions of interest and resolution plans from eligible applicants.
- Resolution plan: the RP checks each plan for compliance, and the CoC votes. An approved plan goes to the NCLT. See the resolution plan, its approval and challenge.
- Outcome: the NCLT either approves the plan under Section 31, which binds everyone, or, if no plan is approved in time, orders liquidation.
04The timeline: 180, 270 and 330 days
The CIRP is a time-bound process, controlled by Section 12 of the IBC.
| Stage | Time | Who decides |
|---|---|---|
| Base period | 180 days from admission | Statute |
| One extension | Up to 90 more days (total 270) | NCLT, on a 66% CoC vote |
| Outer limit | 330 days including litigation time | Statute (2019 amendment) |
The base period is 180 days. The NCLT can extend it once, by up to 90 days, but only if the CoC approves by at least 66% of its voting share. A 2019 amendment added a hard outer limit of 330 days, which is meant to include any time taken in legal proceedings. In practice, the Supreme Court in the Essar Steel case held that this 330 day cap is not absolute, and a short extension can be allowed in exceptional cases, mostly where the delay is caused by the Tribunal or the appeal process.
05Forum and appeals
A CIRP starts and ends at the NCLT. Appeals follow a fixed ladder.
- First forum: the National Company Law Tribunal (NCLT), the bench with jurisdiction over the company.
- Appeal: to the National Company Law Appellate Tribunal (NCLAT) under Section 61, within 30 days, extendable by up to 15 days for sufficient cause.
- Final appeal: to the Supreme Court under Section 62, on a question of law, within 45 days.
Why dates control everything
Because the CIRP runs on a statutory clock, a missed hearing or a late application can cost a party its remedy. Tracking every order and listing at the NCLT is not housekeeping, it is how you protect the timeline.
06Where Claw fits
Claw is an all-in-one legaltech platform for Indian advocates, law firms, and corporate legal teams, combining AI-based case search, an AI legal assistant (Legal GPT), case management, and compliance automation across all Indian courts and tribunals.
A CIRP runs on a clock, and it throws off orders, listings and appeals at the NCLT, then the NCLAT, then the higher courts. Claw keeps that trail in one place: enter the corporate debtor or advocate name and it follows the cases, orders and hearings across 9,102 courts, benches and forums, so a listing under Section 7, 9 or 12 does not slip past a deadline. To see how a bench has read admission, the timeline or plan approval, its 30 crore+ judgments come back in under 5 seconds.
Work on a live insolvency often means sensitive filings, and Claw does not use customer case documents to train its AI models. Start a free Claw account to follow a CIRP from admission to outcome and to research the Code as the Tribunals have applied it. For a broader sweep, see case search across Indian courts.
07Sources and further reading
- Insolvency and Bankruptcy Board of India (IBC, regulations and orders): ibbi.gov.in
- India Code (official text of the IBC, 2016): indiacode.nic.in
- Ministry of Corporate Affairs (default threshold notification): mca.gov.in
- Claw: clawlaw.in
This explainer is general information, not legal advice. The Code, its regulations and the case law change often, so check the current text and take advice from counsel before you act.
08Frequently asked questions
Who can start a CIRP under the IBC?
A financial creditor under Section 7, an operational creditor under Section 9 (after a Section 8 demand notice), or the corporate debtor itself as a corporate applicant under Section 10. The minimum default needed to file is Rs 1 crore, applicable since the notification of 24 March 2020.
How long does a CIRP take?
The base period is 180 days from admission. The NCLT can extend it once by up to 90 days (total 270) if the Committee of Creditors approves by at least 66%. A 330 day outer limit, meant to include litigation time, was added in 2019, though the Supreme Court has allowed short extensions in exceptional cases.
What is the moratorium in a CIRP?
On admission, Section 14 of the IBC declares a moratorium. It stays suits and recovery actions against the company, bars enforcement of security, and prevents the transfer of assets, so the company is shielded while the process runs.
Which tribunal hears a CIRP?
The National Company Law Tribunal (NCLT) bench with jurisdiction over the company. Appeals go to the National Company Law Appellate Tribunal (NCLAT) under Section 61 within 30 days, and then to the Supreme Court under Section 62 on a question of law.
What happens if no resolution plan is approved?
If no resolution plan is approved by the CoC and the NCLT within the timeline, the Tribunal orders liquidation of the company under the IBC. The liquidator then sells the assets and distributes the proceeds in the Section 53 order of priority.
Can I track a CIRP matter in Claw?
Yes. Claw follows a CIRP by the corporate debtor or advocate name through the NCLT, the NCLAT and the higher courts, tracking cases, orders and hearings across 9,102 courts, benches and forums, and searches 30 crore+ judgments in under 5 seconds. It tracks and researches the matter but does not give legal advice.