The Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC) in India is a structured process. Here are the steps involved:

1. Initiation: The process begins when a financial or operational creditor or the company itself identifies a default. The creditor or the company applies to the National Company Law Tribunal (NCLT) to declare the company as insolvent.

2. Appointment of Interim Resolution Professional: Once the NCLT admits the application, an Interim Resolution Professional (IRP) is appointed. The IRP takes control of the debtor's assets and operations.

3. Committee of Creditors: The IRP forms a Committee of Creditors (CoC), which comprises all the financial creditors of the debtor. The CoC has the power to decide on the resolution plan.

4. Preparation of Resolution Plan: The IRP invites prospective lenders, investors, and other parties to put forward a resolution plan. The resolution plan outlines how the debtor's assets will be managed to repay creditors.

5. Approval of Resolution Plan: The CoC reviews the resolution plans and approves a plan. The plan must be approved by at least 66% of the CoC. If approved, the plan is submitted to the NCLT for final approval.

6. Implementation of the Plan: Once the NCLT approves the plan, it is implemented. The debtor's assets are managed as per the plan to repay the creditors.

7. Liquidation: If the CoC cannot approve a resolution plan within the stipulated 180 days (extendable by 90 days), the company goes into liquidation. The liquidator sells the debtor's assets to repay the creditors.

This is a simplified overview of the CIRP process under the IBC. The actual process may involve more steps and complexities depending on the specific case.

Question

The Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC) in India is a structured process. Here are the steps involved:

1. Initiation: The process begins when a financial or operational creditor or the company itself identifies a default. The creditor or the company applies to the National Company Law Tribunal (NCLT) to declare the company as insolvent.

2. Appointment of Interim Resolution Professional: Once the NCLT admits the application, an Interim Resolution Professional (IRP) is appointed. The IRP takes control of the debtor's assets and operations.

3. Committee of Creditors: The IRP forms a Committee of Creditors (CoC), which comprises all the financial creditors of the debtor. The CoC has the power to decide on the resolution plan.

4. Preparation of Resolution Plan: The IRP invites prospective lenders, investors, and other parties to put forward a resolution plan. The resolution plan outlines how the debtor's assets will be managed to repay creditors.

5. Approval of Resolution Plan: The CoC reviews the resolution plans and approves a plan. The plan must be approved by at least 66% of the CoC. If approved, the plan is submitted to the NCLT for final approval.

6. Implementation of the Plan: Once the NCLT approves the plan, it is implemented. The debtor's assets are managed as per the plan to repay the creditors.

7. Liquidation: If the CoC cannot approve a resolution plan within the stipulated 180 days (extendable by 90 days), the company goes into liquidation. The liquidator sells the debtor's assets to repay the creditors.

This is a simplified overview of the CIRP process under the IBC. The actual process may involve more steps and complexities depending on the specific case.

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