The Corporate Insolvency Resolution Process (CIRP)

The Corporate Insolvency Resolution Process (CIRP) is a recovery mechanism made available to creditors as under the Insolvency and Bankruptcy Code, 2016 (IBC). In case a corporate entity becomes insolvent (unable to repay debt), the concerned creditor or the corporate entity (the debtor) itself, may initiate CIRP.
The Insolvency and Bankruptcy Code, 2016, is aimed at balancing the interests of all stakeholders by amending and consolidating the laws related to reorganization and insolvency of corporate entities, individuals and partnership firms in a time-bound manner.
The Corporate Insolvency Resolution Process (CIRP) is a redressal mechanism for creditors as per the provisions of the Insolvency and Bankruptcy Code, 2016.
If a corporate becomes insolvent, a financial creditor, an operational creditor, or the corporate itself may initiate CIRP.

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