Committee of Creditors (CoC)
Role and Proposed Enhancements
The Committee of Creditors (CoC) under IBC is composed exclusively of financial creditors of the insolvent company. The CoC has decision-making authority over the resolution plan, including choosing between competing plans, approving liquidation, or even withdrawing the CIRP application (Section 12A, post-2018 amendment). The Select Parliamentary Committee recommended enhanced CoC powers — likely including greater flexibility to negotiate time extensions, pre-packaged settlements, and faster approval mechanisms — to reduce judicial bottlenecks at the NCLT.
- CoC does not include operational creditors (suppliers, employees) in voting — they have representation rights only.
- Pre-packaged insolvency (PPIRP) introduced in 2021 for MSMEs via IBC (Amendment) Act 2021: allows informal resolution before formal admission, capping CIRP to 120 days.
- Section 12A (2018 amendment): allows CoC to vote to withdraw CIRP by 90% majority.
- IBBI data (2024): average CIRP time exceeds 650 days; realisation for financial creditors averages 30–35 paise per rupee of admitted claims.
● Tracked since March 10, 2026 · last seen March 30, 2026 · updates as the daily brief publishes
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