Delay In The CIRP Procedure Under IBC

Damayanti Niyogi, Symbiosis Law School, Pune

ABSTRACT

The IBC Code refers to the Insolvency and Bankruptcy Code, which is a comprehensive legislation enacted by the Government of India in 2016 to address issues related to insolvency, bankruptcy, and the reorganization of distressed companies and individuals. The IBC aims to provide a time-bound and efficient process for resolving insolvency cases, promoting the maximization of asset value, and balancing the interests of all stakeholders involved, including creditors, debtors, and investors.

However, on the basis of an analysis of the Official Data released by the Insolvency and Bankruptcy Board of India in April 2023 which showcases 63% cases1 this year have faced delay in the Corporate Insolvency Resolution Process (CIRP). In this paper we have tried to address this issue and analyse the possible reasons for delay in the CIRP process with a special focus on how the discretionary power of the NCLAT might have acted against the legislative intention of IBC 2016.

Keywords - Corporate Insolvency Resolution Process (CIRP), NCLAT, Insolvency and Bankruptcy Board of India, Delay, IBC Code, discretionary power