Creditor-Initiated Insolvency Resolution Process (CIIRP)
The New Fast-Track Mechanism
The CIIRP introduced by the 2025 Amendment is modelled on pre-packaged insolvency mechanisms used in jurisdictions like the UK and the US (Chapter 11 pre-packs). It allows a critical mass of financial creditors (holding 51% of the debt by value, by voting consent) to initiate an out-of-court restructuring process — giving the corporate debtor 30 days' notice before formally commencing. The process must be completed within 150 days (extendable by 45 days). This is significantly faster than CIRP and is designed for cases where creditors already have a restructuring plan in mind and want to avoid the cost and time of formal NCLT proceedings.
- Initiation threshold: Financial creditors holding 51% voting consent (joint initiation required)
- Notice period to corporate debtor: 30 days before commencement
- CIIRP timeline: 150 days + 45-day extension = maximum 195 days (vs. CIRP's 330 days)
- Admission criteria: NCLT must admit once (a) default is established, (b) application is complete, (c) no disciplinary proceedings against proposed Resolution Professional
- NCLT 14-day disposal mandate: New obligation to dispose of Sections 7/9/10 applications within 14 days; delays must be explained in writing
- Designed for: Large financial creditor-driven cases (banks, NBFCs, AIFs) where out-of-court negotiation has already progressed
● Tracked since March 30, 2026 · last seen May 26, 2026 · updates as the daily brief publishes