The Insolvency and Bankruptcy Code imposes strict statutory deadlines enforced by the NCLT. Whether you are a creditor pursuing recovery, a debtor seeking restructuring, or a resolution applicant — early specialist counsel can be the difference between resolution and liquidation.
The Insolvency and Bankruptcy Code 2016 fundamentally changed corporate distress resolution in India. With ₹1 Crore as the default threshold and mandatory timelines enforced by NCLT, the code creates both powerful tools for creditors and critical risks for debtors who do not respond correctly and swiftly.
From initiation to resolution — we handle every stage and matter type before all 16 NCLT benches.
The complete timeline from petition to resolution — with mandatory deadlines that the NCLT enforces strictly.
| Deadline | Stage | Key Actions & Notes |
|---|---|---|
| Day 0 | Application Filed | Section 7 (Financial Creditor), Section 9 (Operational Creditor), or Section 10 (Corporate Debtor) petition filed at the appropriate NCLT bench. Minimum default: ₹1 Crore. |
| 14 Days CRITICAL | Admission / Rejection | NCLT must admit or reject within 14 days. On admission: moratorium (Section 14) declared immediately — all suits, recovery actions, and asset transfers against the corporate debtor are frozen. IRP is appointed. |
| 3 Days | Public Announcement | IRP makes public announcement inviting claims from all creditors within 3 days of appointment. |
| 30 Days | CoC Constituted | Committee of Creditors (CoC) formed from verified financial creditors. The CoC has voting rights based on admitted claim amounts. Operational creditors participate but do not vote unless no financial creditors exist. |
| 90 Days CRITICAL | Claims Deadline | All creditors must submit claims within 90 days of CIRP commencement. Late claims are barred. This deadline is strictly enforced — creditors who miss it lose their right to participate in the resolution process. |
| 180 Days | Resolution Plan Deadline | CIRP must be completed within 180 days. CoC may grant one extension (approved by 66% vote) to extend to 270 days. Resolution plan requires 66% CoC approval to pass. |
| 270 Days | Extended Deadline | One-time extension to 270 days on CoC approval. NCLT can exclude litigation time from the count. |
| 330 Days OUTER LIMIT | Mandatory Resolution or Liquidation | Absolute outer limit including all litigation. If no approved resolution plan exists, the company automatically goes into liquidation. In practice, average duration is 739 days — but courts now increasingly impose consequences for delays. |
The IBC creates different rights, risks, and strategies for each stakeholder. Our counsel is tailored to your specific position in the proceedings.
NCLT jurisdiction is determined by the registered office of the corporate debtor. We have panel advocates at all 16 benches.
NCLT and litigation matters are quoted on a fixed-fee basis per matter — not hourly. You always know the scope and cost before we begin.
The minimum default threshold to trigger CIRP proceedings is ₹1 Crore. This was raised from ₹1 lakh to ₹1 Crore in 2020 to prevent frivolous filings. Both financial creditors (Section 7) and operational creditors (Section 9) must demonstrate a default of at least ₹1 Crore in admitted claims.
A Section 8 demand notice gives you 10 days to repay or raise a "pre-existing dispute." If you do not respond, the operational creditor can file a Section 9 petition. The NCLT can admit this petition within 14 days — at which point a moratorium is declared and an IRP is appointed. You must respond immediately — ideally within 24–48 hours of receiving the notice. Call our emergency line immediately.
Not as a default. Section 29A of IBC bars promoters who are classified as NPAs (Non-Performing Assets) with the lending bank from submitting a resolution plan. However, MSMEs have an exemption under Section 240A — promoters of MSME corporate debtors may submit plans. Your eligibility depends on the specific facts; this must be assessed case by case.
The moratorium under Section 14 prohibits: (a) institution of suits or proceedings against the corporate debtor, (b) transferring, encumbering, or disposing of assets, (c) enforcement of security interests, and (d) recovery of property by an owner or lessor. It does NOT cover: criminal proceedings, essential supplies to the company, surety enforcement against guarantors, or transactions permitted by NCLT. Personal guarantors face a separate moratorium under Section 94/95.
The IBC stipulates a 330-day outer limit. In practice, the average duration for financial creditor CIRPs is 739 days (as of 2025) — more than double the statutory limit — due to litigation, NCLAT appeals, and procedural delays. Courts are now taking a stricter stance on timelines. This makes early expert representation critical to managing timeline risks for both creditors and debtors.
Yes — and this is one of the most powerful aspects of the IBC. The mere filing of a Section 7 or Section 9 petition creates enormous pressure on the corporate debtor. Over 30,000 cases have been settled before NCLT admission since IBC's inception — representing ₹13.8 trillion in underlying defaults resolved without formal CIRP. We routinely use the IBC as a strategic lever to obtain settlements that would have taken years through civil courts.