The Insolvency and Bankruptcy Code (IBC) provides for a time-bound process for completing bankruptcy/insolvency proceedings. The timeline for completing the proceedings under the IBC is as follows: Corporate Insolvency Resolution Process (CIRP) The CIRP is a process initiated for corporate debtors (companies) who are unable to repay their debts. The timeline for completing the CIRP is 180 days, which can be extended by another 90 days if required. Therefore, the maximum time allowed for completing the CIRP is 270 days. Fast Track Corporate Insolvency Resolution Process (FCCIRP) The FCCIRP is a simplified version of the CIRP, which is available for small companies with a lower amount of debt. The timeline for completing the FCCIRP is 90 days, which can be extended by another 45 days if required. Therefore, the maximum time allowed for completing the FCCIRP is 135 days. Liquidation Process If the CIRP or the FCCIRP fails to produce a workable resolution plan, the company is liquidated. The timeline for completing the liquidation process is one year, which can be extended by another year if required. Therefore, the maximum time allowed for completing the liquidation process is two years. It is important to note that the timelines mentioned above are subject to certain conditions and exceptions, and may vary depending on the specific circumstances of the case. For example, the timeline for completing the CIRP may be extended if the National Company Law Tribunal (NCLT) is satisfied that the delay was due to exceptional circumstances. Similarly, the timeline for completing the liquidation process may be extended if the NCLT is satisfied that the delay was due to exceptional circumstances and that the interests of the stakeholders would be better served by such an extension.

Dear client, The insolvency and bankruptcy code were first introduced in India in the year 2016 which provided the comprehensive framework for bankruptcy and insolvency court proceedings. The timeline for completing the court proceedings is governed under the insolvency and bankruptcy code and the insolvency and bankruptcy board of India (IBBI) and the national company law tribunal (NCLT). This process typically involves the following steps: Application – A creditor or the corporate debtor have to submit an application to the NCLT within the 14 days from the date of defaults, the application should state that the corporate debtor has committed a default or in the case where the company is not paying its debts. Admission – once the application is submitted before the NCLT and it will admit the application and constitute an interim resolution professional within the 5 working days of admission of the applications. The resolution professional has the power to take charge of the corporate debtor’s assets, records, etc., Public announcement - the resolution professional publishes an announcement notice inviting financial creditors to file their claims. Claim submissions - financial creditors can submit their claims within 20 working days from the date of public announcement. The operational creditors can submit their claims within 7 working days from the date of public announcement, but this has been extended to only 14 working days by the government. Committee of creditors (CoC) - The claims filed by creditors are reviewed by the committee of creditors. The committee of creditors should only take 180 days to make a decision on the resolution plan submitted by the resolution professional. Resolution plan – The interim resolution professional prepares a resolution plan which will be submitted to the CoC. The committee has its discretion to either choose any one of the plans submitted by various bidders or reject all the plans. The CoC decision is binding on both the corporate debtor and all stakeholders. Approval by NCLT – If the resolution plan is approved by the CoC, then the plan is submitted to the NCLT for approval. When the NCLT is satisfied that the plan is viable and beneficial to the corporate debtor and stakeholders, it approves the plan. Implementation of resolution plan – the NCLT approves the resolution plan and the plan should be implemented. If the plan does not get completed within the 330 days from the commencement of the insolvency proceedings, the corporate debtor goes into liquidation. Liquidation of Assets – If the resolution plan fails then the assets of the corporate debtor are liquidated. De- registration and De-listing – post completion or liquidation process, the corporate debtor can apply in front of the registrar of companies (RoC) for de- registration or to the stock exchanges for delisting. I hope this answer helps. In case of future queries please feel free to contact us. Thank you