Fast Track Corporate Insolvency Resolution Process under IBC, 2016
The Insolvency and Bankruptcy Code, 2016 (IBC) introduced a comprehensive framework for resolving corporate insolvencies in India. Within this framework, the Fast Track Corporate Insolvency Resolution Process (CIRP) was designed to expedite the resolution of smaller companies with simpler financial structures.
Eligibility Criteria:
The Fast Track CIRP is available for certain eligible corporate debtors. To qualify for this process, the debtor must meet the following criteria: a. The debtor should be classified as a small company, as defined under the Companies Act, 2013. b. The debtor's aggregate outstanding debt, including all creditors, should not exceed INR 1 crore (approximately USD 150,000) as specified by the central government. c. The debtor should not have undergone any previous CIRP or completed a Fast Track CIRP within the preceding two years.
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