Abstract

The Insolvency and Bankruptcy Code, 2016 (IBC) has emerged as a landmark reform in India's economic and legal framework. Introduced to address the growing concerns around non-performing assets (NPAs) and inefficient debt recovery mechanisms, the IBC aims to consolidate and amend laws relating to the reorganization and insolvency resolution of corporate entities, partnership firms, and individuals in a time-bound manner. The Corporate Insolvency Resolution Process (CIRP) is a core element of the Code, providing a systematic and legally sound process to resolve insolvency while preserving the value of assets and protecting stakeholders’ interests. This article evaluates the efficiency of CIRP, examining timelines, resolution rates, and recovery values since the inception of IBC. It further explores practical challenges such as delays, lack of adequate resolution professionals, valuation complexities, and the impact of judicial interpretations. The analysis highlights significant judicial trends that have shaped the implementation of CIRP—ranging from the Supreme Court’s emphasis on time-bound resolution to evolving interpretations around operational vs. financial creditors. The article is structured into five main chapters: (1) Evolution and Framework of CIRP under IBC; (2) Operational Mechanism and Stakeholder Roles; (3) Efficiency and Performance Metrics; (4) Challenges and Systemic Bottlenecks; and (5) Judicial Trends and Impact on CIRP Jurisprudence. The conclusion draws insights into potential reforms and suggests a roadmap for strengthening CIRP’s execution. Overall, this study offers a critical lens on how the CIRP has transformed the insolvency landscape in India and what lies ahead for its sustainability and improvement.

Keywords