The Insolvency and Bankruptcy Code, 2016 has transformed the way corporate financial distress is addressed in India. Before the IBC, insolvency and recovery matters were often handled through fragmented legal mechanisms, resulting in delays, prolonged litigation, and erosion of asset value.
The Corporate Insolvency Resolution Process has been the principal mechanism for resolving corporate insolvency under the IBC. A newer framework, Creditor-Initiated Insolvency Resolution Process, has been introduced as an additional route intended to facilitate creditor-driven resolution in suitable cases.
This article explains CIRP and CIIRP in simple terms for Resolution Professionals, students, stakeholders, bankers, and borrowers….