Insolvency · For creditors, bidders and companies
The stages of a corporate insolvency resolution process and where time limits apply. General legal information only; verify the current timelines after the 2026 amendment.
Stages
- Application and admission: the NCLT admits or rejects the application. The 2026 amendment is reported to tighten the admission timeline, so confirm its commencement status.
- Public announcement and claims: the resolution professional invites claims from creditors.
- Committee of creditors: financial creditors form the committee that decides on the resolution plan.
- Information memorandum and expressions of interest: prospective applicants are invited.
- Resolution plans: applicants submit plans, which the committee votes on.
- Approval by the NCLT: an approved plan binds creditors, the company and stakeholders once the NCLT approves it.
- Liquidation: if no plan is approved in time, the company goes into liquidation.
Timelines
The Code sets an overall time limit for the process, with a possible extension, and a long-stop period that includes litigation. These limits have been the subject of amendments and court rulings, so confirm the current rules.
For prospective bidders
- Check eligibility under section 29A.
- Review the information memorandum and liabilities carefully.
- Understand how the Code treats past claims against the company once a plan is approved.
Related: Insolvency and IBC · All insolvency guides · Send an enquiry
Important disclaimer: This article is general legal information, not legal advice. It does not create a lawyer-client relationship and is not an advertisement or solicitation under Bar Council of India rules. Verify current statutes, rules and judgments before relying on it.
