The Insolvency and Bankruptcy Code was designed to be fast. Before it, insolvency-type cases in India could run for a decade or more while the assets of the company lost value. The Code set hard timelines: a corporate insolvency resolution process, or CIRP, is meant to be completed within 180 days of admission, extendable once by up to 90 days, with an outer limit of 330 days including time spent in litigation.
Reality has been slower. Many CIRPs take well over a year, and some take several years, because of litigation, delays in admission, disputes over claims and challenges to resolution plans. This guide explains each stage of the timeline, how long it is supposed to take, how long it usually takes, why delays happen and what the 2026 amendment did about them. It will help creditors, companies and bidders plan realistically.
हिंदी में सारांश
IBC के तहत कॉरà¥à¤ªà¥‹à¤°à¥‡à¤Ÿ दिवाला पà¥à¤°à¤•à¥à¤°à¤¿à¤¯à¤¾ (CIRP) सà¥à¤µà¥€à¤•à¤¾à¤° होने के 180 दिनों में पूरी होनी चाहिà¤, जिसे à¤à¤• बार 90 दिन तक बढ़ाया जा सकता है, और मà¥à¤•à¤¦à¤®à¥‡à¤¬à¤¾à¤œà¤¼à¥€ समेत अधिकतम सीमा 330 दिन है। लेकिन वà¥à¤¯à¤µà¤¹à¤¾à¤° में कई मामले इससे काफी ज़à¥à¤¯à¤¾à¤¦à¤¾ समय लेते हैं। 2026 संशोधन ने सà¥à¤µà¥€à¤•à¤¾à¤° करने, योजना की मंज़ूरी और NCLAT अपील के लिठसमय-सीमाà¤à¤ कड़ी की हैं।
Timelines at a glance
Admission
The NCLT is expected to decide within 14 days of filing. In practice, admission often takes weeks or months.
180 days
The standard period for the CIRP, from the date of admission.
90-day extension
The committee of creditors can ask the NCLT for one extension of up to 90 days, with 66% of the vote.
330 days
The outer limit including time taken in legal proceedings, though the Supreme Court has allowed it to be exceeded in exceptional cases.
Plan approval
Under the 2026 amendment, the NCLT must decide on a plan within 30 days of it being filed.
Liquidation
If no plan is approved, liquidation follows. The 2026 amendment allows a one-time restoration of the CIRP for up to 120 days in suitable cases.
The CIRP timeline, stage by stage
Filing to admission
The application is filed, defects are cured within seven days of notice, the company is heard and the NCLT decides. The law sets 14 days; actual time ranges from a few weeks to several months, depending on the bench and objections.
Public announcement (within 3 days of appointment)
The interim resolution professional publishes the announcement inviting claims, usually within three days of appointment. Claims are generally due within 14 days of the professional's appointment, with later filing allowed up to a point.
Committee of creditors (within about 30 days of admission)
The professional verifies claims and constitutes the committee. The first meeting is usually held within seven days of constitution.
Information memorandum and invitation for plans
The professional prepares the information memorandum and issues the invitation for expressions of interest. Bidders do due diligence and submit plans by the deadline.
Evaluation and voting
The committee negotiates with bidders, evaluates plans and votes. Approval needs 66% of the voting share.
NCLT approval
The resolution professional files the approved plan. Under the 2026 amendment, the NCLT must decide within 30 days, and may approve implementation first and the distribution separately.
Why cases take longer than the law says
Most delay comes from litigation. A promoter may challenge admission before the NCLAT and then the Supreme Court. Creditors whose claims are rejected file applications. Bidders who lose challenge the committee's choice. Related parties challenge their exclusion from the committee. Each of these can hold up the process, sometimes for months, even when the tribunal does not grant a stay.
Admission itself is often slow, because benches have heavy lists and corporate debtors raise objections on limitation, disputes or the amount. Valuation, data room preparation and bidder interest also take time, especially for large or complex companies. And some companies simply attract no credible bidders, leading to repeated invitations before liquidation is considered.
The Supreme Court in Essar Steel (2019) upheld the 330-day outer limit but struck down the word "mandatorily", holding that the NCLT and NCLAT could extend the period in exceptional cases where the delay was due to the tribunal itself or to frivolous litigation, and where only a short time remained. That made 330 days a strong target rather than an absolute wall.
Planned versus typical timelines
| Stage | What the law says | What often happens |
|---|---|---|
| Admission | Within 14 days of filing | A few weeks to several months |
| Constitution of the committee | Within about 30 days of admission | Usually close to the target |
| Plans received | Within the period in the invitation | Often extended for bidder interest |
| Committee approval | Within 180 or 270 days | Often later because of negotiations and litigation |
| NCLT approval of plan | Within 30 days of filing (2026 amendment) | Depends on objections and the bench's list |
| Whole CIRP | 330 days including litigation | Often well over a year for larger cases |
What the 2026 amendment changed on timing
The 2026 amendment, in force from 26 May 2026, attacked delay at several points. For Section 7 applications, the NCLT must admit once default is established and the application is complete, and must record reasons if it does not decide within the time set. The NCLT must decide on a resolution plan within 30 days of it being filed, and can approve implementation first, leaving disputes about distribution among creditors to a separate order within 30 days. Appeals before the NCLAT are expected to be decided within three months.
Before liquidation is ordered, the committee can, with 66% of the vote, ask for a one-time restoration of the CIRP for up to 120 days if a viable plan is in sight. And the NCLT must pass the liquidation order within 30 days of an application or intimation. These changes do not eliminate litigation, but they reduce the room for open-ended delay. Whether they work in practice will depend on how benches apply them.
Planning around the timeline
For creditors, a CIRP is not a quick recovery. Expect the process to take at least a year, and longer if the company is large or the promoters litigate. Budget for your share of process costs, attend committee meetings and file claims on time.
For companies and promoters, the early stages matter most. The time between filing and admission is the main window to settle or defend. After the committee is formed, a Section 12A withdrawal needs 90% of the vote and must happen before the first invitation for plans. See settlement after admission.
For bidders, the timetable in the invitation is the key document, but plan for extensions and for challenges after approval. Approvals such as CCI clearance, which the Supreme Court has treated as mandatory where required, should be built into the plan's timeline from the start.
A mid-sized CIRP from start to finish
Here's a made-up example of a fairly typical timeline. A Noida electronics company was the subject of a Section 7 application filed in January. Admission came in April, after two adjournments. The committee of creditors was formed in May and appointed the resolution professional. The information memorandum and invitation for plans followed in July. Plans came in by October; negotiations ran through December. The committee approved a plan in January, about 280 days after admission, having obtained one 90-day extension. An unsuccessful bidder objected, and the NCLT approved the plan in April, roughly 15 months after filing and a year after admission. By the standards of Indian insolvency, this was a reasonably quick case.
When litigation stretches the process
Here's a second made-up example. A Gujarat steel company was admitted in March. The promoters appealed to the NCLAT, which refused a stay but kept the appeal pending. A related party challenged its exclusion from the committee, a lender contested the treatment of its security, and two bidders challenged the evaluation process. Each application took weeks or months. The committee approved a plan just before day 330, and the NCLT approved it four months later after hearing objections. The promoters' appeal was eventually dismissed. Litigation added nearly a year to the process.
How each party can reduce delay
- Creditors: file complete claims early, with documents, to avoid verification disputes
- Applicants: file a complete application with proof of default and the professional's consent, so defects do not hold up admission
- Committee members: read papers before meetings and vote on time
- Resolution professionals: prepare the information memorandum and data room early
- Bidders: build regulatory approvals into the plan's timeline from the start
- Everyone: raise objections at the right stage, not after the plan is approved
Timelines in other IBC processes
Other processes under the Code have their own timelines. The MSME pre-packaged process under Section 54A is meant to be completed within 120 days, with the base plan to be filed with the NCLT within 90 days of commencement. Voluntary liquidation of a solvent company is generally expected to be completed within about a year. Liquidation after a failed CIRP has timelines under the liquidation regulations, which the 2026 amendment tightened. And for personal guarantors, the resolution professional must report on the application within the time set by Section 99, after which the NCLT decides admission. See MSME pre-pack and liquidation.
Who decides on extensions and timing
| Decision | Who decides | Vote or test |
|---|---|---|
| Extension of CIRP beyond 180 days | NCLT, on the committee's application | 66% of the committee's vote |
| Exceeding 330 days | NCLT or NCLAT | Exceptional cases only, after Essar Steel |
| Replacement of the resolution professional | Committee, with NCLT approval | 66% of the committee's vote |
| Restoring CIRP before liquidation (2026) | NCLT, on the committee's request | 66% of the vote, one time, up to 120 days |
| Liquidation order | NCLT | Within 30 days of application or intimation (2026) |
What the timeline means for operational creditors
Operational creditors do not sit on the committee of creditors, so they have little control over the pace of the process. Their main tasks are to file claims early, with complete documents, and to check how they are treated in the plan. A plan must pay operational creditors at least the amount required by Section 30(2)(b), and since the 2026 amendment the minimum is linked to what they would receive under the Section 53 waterfall applied to the plan value. Delays in the process usually reduce what everyone recovers, because the business loses value while it waits, which is one reason operational creditors often support a quick plan rather than an extended contest.
Frequently Asked Questions
How long does a CIRP take by law?
180 days from admission, extendable once by up to 90 days, with an outer limit of 330 days including litigation.
How long does it actually take?
Often well over a year, and longer for large or heavily litigated cases.
Can the 330-day limit be exceeded?
The Supreme Court held in Essar Steel that it can be exceeded in exceptional cases, such as delay caused by the tribunal or by frivolous litigation.
How long does admission take?
The law expects 14 days. In practice, it can take weeks or months.
What happens if no plan is approved in time?
The NCLT orders liquidation. Since 2026, the committee can ask for a one-time restoration of up to 120 days if a viable plan is in sight.
How long does the NCLT have to approve a plan?
Under the 2026 amendment, 30 days from filing.
How long does an appeal to the NCLAT take?
The 2026 amendment sets a three-month target for IBC appeals.
Can a company settle during CIRP?
Yes, under Section 12A, but only after the committee is formed, with 90% of its vote, and before the first invitation for plans.
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