The Timeline is the essence of CIRP under IBC: A Review Study

The Timeline is the essence of CIRP under IBC: A Review Study

Mrs. P. Anitha, Mrs. C. Latha, Dr. S. Pardhasaradhi

Mrs. P. Anitha Research Scholar- GITAM School of Business – Hyderabad, Assistant professor, Department of Business management, St. Pious X P.G (MBA) College for women, affiliated to Osmania University- Hyderabad

Mrs. C. Latha Research Scholar- GITAM School of Business – Hyderabad, Assistant professor, Department of Business management, St. Pious X P.G (MBA) College for women, affiliated to Osmania University-Hyderabad

Dr. S. Pardhasaradhi St. Pious X PG (MBA) College for Women, , Professor of Business Management & Dean, Research Affiliated to Osmania University-Hyderabad Department & College

Abstract

The Insolvency & Bankruptcy Code, 20161 (IBC) is a behavioral law, wherein the time frame in the Corporate Insolvency Resolution Process (CIRP) is essential.  Section 12 of the code prescribes the timeline for the CIRP.  The Regulation 40A of the IBC Regulations provides the model timeline for compliance.  Basically, it is 180 days and can be extended by 90 days once with sufficient reasons permitted under the code. In all, there are 330 days, including time consumed in the legal process.  However, in exceptional circumstances, CIRP has exceeded beyond 330 days also, where it is approved by the CoC by 100 % under special justified circumstances.  The commercial wisdom of CoC is not generally questioned by the judiciary.  In this paper an attempt is made to trace certain judicial pronouncements pertaining to the time element of CIRP, to trace what are circumstances under which the extension were permitted and to what extent the time frame is maintained in general.

Key words: Committee of creditors (COC), insolvency and bankruptcy, ibc, behavioral law, CIRP.