CIRP Process Under IBC, Step by Step
Ten steps from admission to approval. What an IP may do depends on which step the facts sit in.
The corporate insolvency resolution process (CIRP) runs in a fixed order. A creditor or the company applies, the NCLT admits, an interim resolution professional takes over, claims are collected, the committee of creditors forms, resolution plans are invited and voted on, and the NCLT approves a plan or orders liquidation.
Case-study questions in the Limited Insolvency Examination often hinge on where in that sequence the facts sit, because what an IP may do, and with whose approval, changes at each stage. The sequence below follows the Code and the CIRP Regulations as tested at the exam cut-off of 4 February 2025, with later changes marked.
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The CIRP, Step by Step
- 1
1. Application and admission
A financial creditor (s. 7), operational creditor (s. 9, after a s. 8 demand notice) or the corporate applicant (s. 10) applies to the NCLT. On admission the insolvency commencement date is fixed and the CIRP begins.
- 2
2. Order under section 13
The admission order declares the moratorium under s. 14, directs a public announcement calling for claims, and appoints an interim resolution professional (IRP) under s. 16.
- 3
3. IRP takes control
Management vests in the IRP and the board's powers are suspended (s. 17). The IRP makes the public announcement (reg. 6), collects information on the company and keeps it running as a going concern (ss. 18, 20).
- 4
4. Claims collected and verified
Creditors file claims with proof by the last date in the announcement (reg. 12). The IRP verifies them and keeps a list of creditors (reg. 13).
- 5
5. Committee of creditors constituted
After collating claims the IRP constitutes the CoC of financial creditors (s. 21) and files a report certifying it with the NCLT (reg. 17(1)), then holds its first meeting (reg. 17(2), s. 22(1)).
- 6
6. Resolution professional confirmed or replaced
At the first meeting the CoC, by 66% of voting share, either keeps the IRP as resolution professional (RP) or proposes a replacement (s. 22(2)).
- 7
7. Valuation and information memorandum
The RP appoints registered valuers (reg. 27), forms an opinion on avoidance transactions (reg. 35A) and prepares the information memorandum (s. 29, reg. 36).
- 8
8. Invitation and evaluation of plans
The RP invites expressions of interest (reg. 36A), issues a final list of prospective resolution applicants and the request for resolution plans with an evaluation matrix (reg. 36B), receives plans, and checks each against s. 30(2).
- 9
9. CoC vote
The CoC approves a plan by at least 66% of voting share after considering feasibility, viability and the manner of distribution (s. 30(4)). The RP files the approved plan with the NCLT (s. 30(6)).
- 10
10. NCLT decision
The NCLT approves the plan if it meets s. 30(2) (s. 31(1)), and the moratorium ends. If no plan arrives in time or the plan is rejected, the NCLT orders liquidation (s. 33).
The CoC Can Choose Liquidation at Any Point
Section 33(2) lets the CoC, by 66% of voting share, decide to liquidate at any time after it is constituted and before the plan is confirmed, even before the information memorandum is ready. The process does not have to run to its end.
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What Changed After the Exam Cut-off
Changes in force from 26 May 2026 (the Act) or 2 June 2026 (the regulations). Learn the left column for the exam.
IRP on a s. 10 application
Law at 4 February 2025
The IRP proposed by the corporate applicant is appointed (s. 16(2))
Law in October 2026
The NCLT asks IBBI to recommend an IRP (s. 16(3A))
Confirming the RP
Law at 4 February 2025
CoC communicates its decision to the IRP, the company and the NCLT
Law in October 2026
The person is deemed appointed RP from the date of the CoC resolution; the decision goes to IBBI (s. 22(3)(a))
Withdrawal under s. 12A
Law at 4 February 2025
Applicant applies with 90% CoC approval
Law in October 2026
RP applies with 90% CoC approval; only after CoC constitution and before the first invitation for resolution plans
NCLT approval of the plan
Law at 4 February 2025
No statutory time limit
Law in October 2026
Order within 30 days of receiving the plan, with reasons recorded for any delay (s. 31(2A))
Failed plan or no plan
Law at 4 February 2025
Liquidation order
Law in October 2026
CoC may, by 66%, apply to restore the CIRP once, for up to 120 days, before liquidation (s. 33(1A), (1B))
| Step | Law at 4 February 2025 | Law in October 2026 |
|---|---|---|
| IRP on a s. 10 application | The IRP proposed by the corporate applicant is appointed (s. 16(2)) | The NCLT asks IBBI to recommend an IRP (s. 16(3A)) |
| Confirming the RP | CoC communicates its decision to the IRP, the company and the NCLT | The person is deemed appointed RP from the date of the CoC resolution; the decision goes to IBBI (s. 22(3)(a)) |
| Withdrawal under s. 12A | Applicant applies with 90% CoC approval | RP applies with 90% CoC approval; only after CoC constitution and before the first invitation for resolution plans |
| NCLT approval of the plan | No statutory time limit | Order within 30 days of receiving the plan, with reasons recorded for any delay (s. 31(2A)) |
| Failed plan or no plan | Liquidation order | CoC may, by 66%, apply to restore the CIRP once, for up to 120 days, before liquidation (s. 33(1A), (1B)) |
How the Limited Insolvency Examination Tests This
Expect a case study that opens with an admission order and walks through a few months of events. Questions ask who acts at that moment (IRP or RP), whether an action needs prior CoC approval under s. 28, and what the next statutory step is.
The common trap is the IRP-to-RP handover. Candidates let the IRP do things that belong to the RP (inviting resolution plans, presenting them to the CoC), or forget that the CoC is formed only after claims are collated. Fix the order of steps 3 to 6 before anything else.
FAQs
What are the stages of the CIRP under IBC?expand_more
Admission, moratorium and public announcement, IRP takeover, collection of claims, constitution of the committee of creditors, appointment of the resolution professional, information memorandum and invitation of plans, CoC vote, and NCLT approval or liquidation.
When does the CIRP start?expand_more
On the insolvency commencement date, which is the date the NCLT admits the application under section 7, 9 or 10 (section 5(12)).
Who approves a resolution plan?expand_more
First the committee of creditors, by at least 66% of voting share (section 30(4)). Then the NCLT, which checks that the plan meets section 30(2) before approving it under section 31(1).
What happens if no resolution plan is approved?expand_more
The NCLT orders liquidation under section 33. Since 26 May 2026 the CoC can first ask, once, for the CIRP to be restored for up to 120 days, but that option is not part of the exam's cut-off law.
Next steps
- CIRP Timelinesarrow_forward
- IRP vs RParrow_forward
- Resolution Planarrow_forward
- Preparationarrow_forward
65 questions, case-study format, negative marking.