Corporate Debtor
The entity undergoing insolvency proceedings.
Resources
Regulatory resources
Key IBC frameworks, process lifecycles, stakeholders and reference materials for insolvency professionals and other participants.
Insolvency framework
Insolvency and Bankruptcy Code, 2016
The IBC consolidates and amends the laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms, and individuals in a time-bound manner — with the objective of maximising asset value, promoting entrepreneurship, improving credit availability, and balancing stakeholder interests.
This resource centre summarises indicative process lifecycles and reference materials that may assist Insolvency Professionals, creditors, investors, legal practitioners, and other stakeholders.
- 01 Time-bound insolvency resolution
- 02 Maximisation of asset value
- 03 Promotion of entrepreneurship
- 04 Improved availability of credit
- 05 Balancing stakeholder interests
Lifecycles
Process frameworks
Indicative lifecycles under the IBC, 2016 — read left to right through phases, then top to bottom through each step.
Corporate Insolvency Resolution Process
A structured, time-bound mechanism for resolving financial distress of corporate entities while seeking to maximise value and balance stakeholder interests.
Phase 01
Commencement
- Admission of Application
- Appointment of Interim Resolution Professional
- Public Announcement
Phase 02
Claims & CoC
- Collection and Verification of Claims
- Constitution of Committee of Creditors
Phase 03
Resolution planning
- Preparation of Information Memorandum
- Invitation of Resolution Plans
- Evaluation and Approval by Committee of Creditors
Phase 04
Approval & implementation
- Approval by Adjudicating Authority
- Implementation of Resolution Plan
Voluntary Liquidation
An orderly wind-down path for a solvent corporate person that chooses to liquidate voluntarily, with creditor and regulatory safeguards.
Phase 01
Corporate decision
- Declaration of Solvency
- Board Approval for Voluntary Liquidation
- Shareholders’ Special Resolution and Appointment of Liquidator
Phase 02
Approvals & filings
- Creditors’ Approval
- Regulatory Filings and Intimations
- Public Announcement and Invitation of Claims
Phase 03
Realisation
- Verification of Claims and Preparation of Stakeholder List
- Realisation of Assets
Phase 04
Closure
- Distribution of Proceeds and Preparation of Final Report
- NCLT Application and Dissolution Order
Creditor-Initiated Insolvency Resolution Process
Indicative creditor-initiated lifecycle from evidence of default through plan approval and implementation under the IBC framework.
Phase 01
Default & filing
- Occurrence and Evidence of Default
- Demand Notice by Operational Creditor, Where Applicable
- Filing of Application before NCLT
Phase 02
Admission & estate
- Admission of Application and Commencement of CIRP
- Appointment of Interim Resolution Professional and Moratorium
- Public Announcement and Submission of Claims
Phase 03
CoC & plan
- Verification of Claims and Constitution of Committee of Creditors
- Appointment of Resolution Professional and Preparation of Information Memorandum
- Invitation, Evaluation and CoC Approval of Resolution Plan
Phase 04
Culmination
- NCLT Approval and Implementation of Resolution Plan
Liquidation Process
Where resolution is not feasible, liquidation provides an orderly mechanism for realisation of assets and distribution of proceeds among stakeholders.
Phase 01
Commencement
- Liquidation Order
- Appointment of Liquidator
- Public Announcement
Phase 02
Estate building
- Collection and Verification of Claims
- Asset Identification and Valuation
Phase 03
Realisation & distribution
- Realisation of Assets
- Distribution of Proceeds
Phase 04
Dissolution
- Application for Dissolution
- Dissolution Order
Special pathways
Related frameworks
Alongside CIRP and liquidation, the Code provides specialised routes for eligible MSMEs and for personal guarantors.
Pre-Packaged Insolvency (PPIRP)
A faster, debtor-in-possession route designed for eligible MSMEs — aimed at reducing disruption, cost and timeline while preserving going-concern value where viable.
- Faster resolution mechanism
- Debtor-in-possession model
- Reduced business disruption
- Cost-effective framework
- Time-bound implementation
Personal Guarantor Insolvency & Bankruptcy
A dedicated pathway for personal guarantors to corporate debtors, covering both insolvency resolution and bankruptcy processes with creditor participation.
- Insolvency Resolution Process
- Bankruptcy Process
- Creditor Participation
- Repayment Planning
- Asset Realisation
Ecosystem
Key stakeholders under IBC
Parties who typically participate in, or are affected by, corporate insolvency and liquidation proceedings.
Financial Creditors
Banks, financial institutions, debenture holders, and other financial lenders.
Operational Creditors
Suppliers, employees, statutory authorities, and service providers.
Committee of Creditors (CoC)
The decision-making body comprising eligible financial creditors.
Resolution Professional
The insolvency professional responsible for managing the process.
Adjudicating Authority
National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT).
Reference
Frequently used regulations
- 01 Insolvency and Bankruptcy Code, 2016
- 02 CIRP Regulations
- 03 Liquidation Process Regulations
- 04 Voluntary Liquidation Regulations
- 05 Insolvency Resolution Process for Personal Guarantors Regulations
- 06 Bankruptcy Process Regulations
- 07 Pre-Packaged Insolvency Resolution Process Regulations
- 08 Information Utilities Regulations
- 09 Insolvency Professional Regulations
- 10 Insolvency Professional Agency Regulations
Institutions