The Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC) has to be completed within the 330-day deadline prescribed under the law, the Supreme Court ruled on Monday (Ebix Singapore v. Committee of Creditors of Educomp), according to a news report.
"Judicial delay was the reason why the earlier insolvency regime failed and we cannot let the same happen with the current insolvency regime which came to being after the Insolvency and Bankruptcy Code. Once the Committee of Creditors submits a resolution plan for stressed assets under IBC, it cannot be modified or withdrawn by resolution applicant," the judgment said, according to Bar and Bench.
As per the IBC, the CIRP must be completed within 180 days, extendable by up to a maximum of 90 days. The IBC was amended in 2019 to require that CIRP must be completed within 330 days including any extension and time taken in legal proceedings of the process.
