Insolvency and
Bankruptcy Code, 2016
Twenty-five chapter notes covering India’s landmark insolvency legislation — the Corporate Insolvency Resolution Process (CIRP) under Part II, the Financial Creditor vs. Operational Creditor distinction, the Insolvency Resolution Professional (IRP), the Committee of Creditors (CoC), the 330-day timeline, the Resolution Plan approval framework, and the liquidation process under Section 33. Creditor class first, CIRP stage second, CoC decision third.
IBC — a creditor-in-control regime with a time-bound resolution.
The Insolvency and Bankruptcy Code 2016 fundamentally changed India’s insolvency landscape — from a debtor-friendly regime where liquidation took decades to a creditor-in-control, time-bound framework. The CIRP begins with an application by a financial creditor (Section 7) or operational creditor (Section 9) or the corporate debtor itself (Section 10). The adjudicating authority (NCLT) admits the application, declares a moratorium, appoints an IRP, and constitutes the Committee of Creditors. The CoC drives the process — it approves the Resolution Plan by 66% vote.
These notes anchor every chapter to its IBC section. The most-tested provisions are Section 5(7) (financial creditor), Section 5(20) (operational creditor), Section 7 (FC application), Section 9 (OC application), Section 14 (moratorium), Section 16 (IRP appointment), Section 21 (CoC), Section 30 (Resolution Plan), Section 31 (approval by NCLT), Section 33 (liquidation), and Section 53 (waterfall mechanism).
Each chapter is designed to be read in twelve to fifteen minutes and to leave the reader with the IBC section, the CIRP stage, the creditor class, the timeline, and the leading authority.
How to read these notes
Identify the creditor class.
Every IBC chapter begins by identifying the creditor class. Financial creditor (FC) — a person to whom a financial debt is owed, including banks, debenture holders, home buyers post-amendment. Operational creditor (OC) — a person to whom an operational debt is owed, including suppliers, employees, government for statutory dues. The class determines the application section (Section 7 for FC, Section 9 for OC), the CoC voting rights (only FCs vote in CoC), and the proof of claim procedure.
Track the CIRP stage.
Every IBC question identifies the CIRP stage: Application and admission (Section 7/9/10), moratorium (Section 14), IRP appointment and public announcement (Section 16), CoC constitution (Section 21), invitation for Resolution Plans (Section 25), CoC approval of Resolution Plan (Section 30), NCLT approval (Section 31), or liquidation (Section 33). The stage determines the applicable section and the rights and obligations of each party.
Test on the leading case.
If you can restate the holding of Committee of Creditors of Essar Steel India Ltd v. Satish Kumar Gupta, Swiss Ribbons Pvt Ltd v. Union of India, or Vidarbha Industries Power Ltd v. Axis Bank Ltd in two sentences, you understand the chapter. If not, return to the statutory section and rebuild from there.
All 25 chapters, in 3 groups
Sequenced through the natural structure of the subject — every chapter sits in a doctrinal cluster.Definitions, Application & Moratorium
Sections 3–14 — the CIRP trigger
Section 5 definitions — financial creditor, financial debt, operational creditor, operational debt, corporate debtor, insolvency commencement date. Section 7 application by financial creditor — the threshold (minimum default of one crore rupees post-pandemic amendment), the record of default, the NCLT’s limited inquiry on admission. Section 9 application by operational creditor — the demand notice requirement, the fifteen-day cure period, the dispute defence. Section 10 application by corporate debtor. Section 14 moratorium — the comprehensive freeze on the corporate debtor’s assets and proceedings.
Introduction, Object and Scheme of IBC
IBC · 02Definitions — Corporate Debtor, Operational Creditor, Financial Creditor
IBC · 03Insolvency Triggering Events
IBC · 04Initiation of CIRP by Financial Creditor (Section 7)
IBC · 05Initiation of CIRP by Operational Creditor (Sections 8 to 9)
IBC · 06Initiation of CIRP by Corporate Debtor (Section 10)
IBC · 07Time Limit for CIRP (Section 12)
IBC · 08Moratorium (Section 14)
IRP, CoC & Resolution Plan
Sections 16–31 — the resolution process
Section 16 appointment of the Interim Resolution Professional (IRP). Section 18 IRP’s duties including taking control of the corporate debtor’s assets. Section 21 constitution of the Committee of Creditors (CoC) with only financial creditors as voting members. Section 24 CoC meetings. Section 25 invitation for expression of interest and submission of Resolution Plans. Section 29A ineligibility of certain persons to submit Resolution Plans (former promoters, wilful defaulters). Section 30 Resolution Plan requirements. Section 31 NCLT approval with the ‘commercial wisdom of CoC’ doctrine.
Public Announcement (Section 15)
IBC · 10Interim Resolution Professional and Resolution Professional
IBC · 11Committee of Creditors
IBC · 12Information Memorandum and Resolution Plan
IBC · 13Approval of Resolution Plan (Sections 30 to 31)
IBC · 14Liquidation Process (Section 33 onwards)
IBC · 15Voluntary Liquidation
IBC · 16Fast Track Insolvency Resolution
IBC · 17Pre-Pack Insolvency Resolution Process — MSME
IBC · 18Personal Insolvency — Individual and Partnership
Liquidation, Waterfall & Wrap-Up
Sections 33–53 + NCLAT + Supreme Court
Section 33 liquidation order — when CoC fails to approve a Resolution Plan within the 330-day timeline, or NCLT rejects the Plan. Section 35 liquidator’s powers and duties. Section 52 secured creditor’s options — realise the security or relinquish and participate in the Section 53 waterfall. Section 53 distribution of proceeds — the priority waterfall confirmed in Essar Steel. The appeal to NCLAT under Section 61 and to the Supreme Court. The landmark Supreme Court decisions on IBC including Swiss Ribbons (constitutional validity), Essar Steel (CoC commercial wisdom), and Vidarbha Industries (court’s discretion on admission).