---
title: "Corporate Insolvency Resolution Process (CIRP) — Definition"
description: "The Corporate Insolvency Resolution Process (CIRP) is a 330-day mechanism under India's IBC 2016 for resolving defaulting corporate debtors."
url: "https://modeldiplomat.com/learn/glossary/corporate-insolvency-resolution-process"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- The Corporate Insolvency Resolution Process is the time-bound mechanism under India's Insolvency and Bankruptcy Code, 2016, for resolving or liquidating a defaulting corporate debtor.
- Who can initiate a CIRP under the IBC?
- What is the statutory timeline for completing a CIRP?
- How does CIRP differ from the pre-packaged insolvency process?
- What happens if no resolution plan is approved?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

The Corporate Insolvency Resolution Process is the time-bound mechanism under India's Insolvency and Bankruptcy Code, 2016, for resolving or liquidating a defaulting corporate debtor.

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## Timeline

1. 28 May 2016

   The Code received presidential assent on and its corporate insolvency provisions were notified in stages from December 2016.

2. 24 March 2020

   The process is triggered by an application alleging a default of at least one crore rupees—a threshold raised from one lakh by a Ministry of Corporate Affair…

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Example

In December 2019 ArcelorMittal acquired Essar Steel India for about ₹42,000 crore through a CIRP under the IBC, after the NCLT-supervised process and Supreme Court litigation settled the creditor distribution dispute.

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