Skip to content

Insolvency and Bankruptcy - Law and Practice · Corporate Insolvency Resolution Process

Fast Track Corporate Insolvency Resolution Process under IBC

Updated 11 October 2026 · Fact-checked

Fast track CIRP is a shorter corporate insolvency resolution process under Sections 55 to 58 of the IBC for debtors the Central Government notifies by asset, income, creditor class or debt criteria. It must finish within 90 days of the insolvency commencement date, with one extension of up to 45 days.

Understand Fast Track Corporate Insolvency Resolution Process

The regular corporate insolvency resolution process (CIRP) is built for any corporate debtor. It can be long and costly. For small or simple cases, the Code offers a quicker route: the fast track corporate insolvency resolution process. It runs through the same basic machinery but on a much tighter clock.

Section 55 decides who can use it. An application can be made for three kinds of debtor, all by Central Government notification: (a) a corporate debtor with assets and income below a notified level; (b) a corporate debtor with such class of creditors or such amount of debt as is notified; (c) such other category of corporate persons as is notified. The Code itself does not fix the numbers. Never state a rupee limit unless the question gives it.

Section 57 says how it starts. A creditor or the corporate debtor may file the application. It must come with (a) proof of default shown by records of an information utility or other means specified by the Board, and (b) other information specified by the Board to show the debtor is eligible for fast track.

Section 56 sets the time. The process must be completed within ninety days from the insolvency commencement date. The resolution professional can seek an extension only if the committee of creditors (CoC) passes a resolution supported by 75% of the voting share. The Adjudicating Authority may then extend by a further period it thinks fit, not exceeding 45 days, and only if it is satisfied the case cannot be completed in 90 days. Extension cannot be granted more than once.

So the difference from regular CIRP is mainly eligibility and time. Fast track is open only to notified debtors and has a hard 90-day limit with a single capped extension.

Key rules to remember

Eligible debtors (Section 55(2))
Assets and income below notified level OR notified class of creditors / amount of debt OR other notified category
All three limbs depend on a Central Government notification. The Code gives no figures.
Basic time limit (Section 56(1))
Completion within 90 days from the insolvency commencement date
This is subject to the extension in Section 56(3).
Extension request (Section 56(2))
CoC resolution with 75% of voting share → RP applies to Adjudicating Authority
The RP applies only when instructed by the CoC resolution.
Maximum extension (Section 56(3))
Further period as the Adjudicating Authority thinks fit, not exceeding 45 days, granted only once
Outer limit is 90 + 45 = 135 days from the insolvency commencement date.
Application (Section 57)
Creditor or corporate debtor + proof of default (information utility or other specified means) + information on eligibility
The Board specifies the other means and information.

How to solve Fast Track Corporate Insolvency Resolution Process questions

Use this method for any fact-based question on fast track CIRP.

  1. 1Identify who is applying: a creditor or the corporate debtor. Both can apply under Section 57.
  2. 2Check eligibility under Section 55(2): assets and income below the notified level, notified creditor class or debt amount, or another notified category. Use only the figures given in the question.
  3. 3Check the application contents: proof of default from an information utility or other means specified by the Board, and eligibility information.
  4. 4Fix the insolvency commencement date and count 90 days from it.
  5. 5If more time is needed, test the extension: CoC resolution with 75% of voting share, RP application, Adjudicating Authority satisfied the case cannot finish in 90 days, extension not above 45 days, and no earlier extension.
  6. 6Compare with regular CIRP where asked: eligibility, time limit and extension.
  7. 7State a clear conclusion in one line.

Quickest way: Three-check shortcut: Who, When, How much

When to use it: Use it for short-answer questions or when you have little time in a case study.

  1. Who: is the debtor within a notified category under Section 55(2)?
  2. When: 90 days from the insolvency commencement date.
  3. How much extra: CoC 75% vote, then up to 45 days, once only. Maximum 135 days.
  4. Write the section numbers 55, 56 and 57 beside each point.

Common mistakes in Fast Track Corporate Insolvency Resolution Process

  • Stating fixed asset or turnover limits as written in the Code.

    Students recall notified figures from circulars and assume they are in the section.

    Fix: Say eligibility is as notified by the Central Government. Quote figures only if the question supplies them.

  • Writing 180 days plus 90 days, as in regular CIRP.

    Mixing up the regular CIRP time limits with fast track.

    Fix: Fast track is 90 days, plus one extension of up to 45 days under Section 56.

  • Saying the extension needs a simple majority of the CoC.

    Confusion with ordinary CoC decisions.

    Fix: Section 56(2) needs a resolution supported by 75% of the voting share.

  • Allowing a second extension because the case is complex.

    Students assume the tribunal has wide discretion.

    Fix: The proviso bars more than one extension. Total cannot exceed 45 extra days.

  • Saying only a creditor can apply.

    Memory of Section 7 applications.

    Fix: Section 57 allows a creditor or the corporate debtor to apply.

  • Counting 90 days from the date of filing.

    Loose reading of the section.

    Fix: Count from the insolvency commencement date.

Worked examples

Example 1

Sundaram Packaging Pvt Ltd is a notified-category corporate debtor under a fast track CIRP. The insolvency commencement date is 1 March. By day 80, the RP finds that a key claim dispute cannot be settled in time. The CoC passes a resolution to seek more time with 70% of the voting share. Can the RP apply for extension?

Show the solution
  1. Section 56(1) gives 90 days from the insolvency commencement date, so the period ends on day 90.
  2. Under Section 56(2), the RP applies for extension only if instructed by a CoC resolution supported by 75% of the voting share.
  3. Here the resolution has 70% support, which is below 75%.
  4. So the condition for the RP's application is not met.

Answer: No. The resolution has only 70% of the voting share, so the RP cannot apply for extension. The process must be completed within 90 days.

Example 2

In a fast track CIRP of Kaveri Textiles Ltd, the CoC passed a 80% resolution and the Adjudicating Authority extended the process by 45 days after the first 90 days. The RP now asks for another 20 days. Examine.

Show the solution
  1. Section 56(2) is satisfied, as 80% is more than 75%.
  2. Section 56(3) allows an extension not exceeding 45 days. The 45 days granted is the permitted maximum.
  3. The proviso says an extension shall not be granted more than once.
  4. The request for 20 more days is a second extension, so it is barred.
  5. The total period is 90 + 45 = 135 days from the insolvency commencement date.

Answer: The further request cannot be granted. Only one extension is allowed, and it was already given. The process must end within 135 days of the insolvency commencement date.

Exam tips

  • Start with the section numbers: 55 for eligibility, 56 for time, 57 for initiation.
  • Write the three limbs of Section 55(2) and add that they depend on notification.
  • In time-limit problems, show the arithmetic: 90 + 45 = 135 days.
  • For a comparison question, use a two-column layout in words: eligibility, time limit, extension, who can apply.
  • End case answers with a one-line conclusion.

Practice questions from Corporate Insolvency Resolution Process

Fast Track Corporate Insolvency Resolution Process in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Fast Track Corporate Insolvency Resolution Process: frequently asked questions

What is the time limit for fast track CIRP?

Section 56 requires completion within 90 days from the insolvency commencement date. One extension of up to 45 days is possible, with CoC approval of 75% of the voting share and the Adjudicating Authority's order.

Which corporate debtors can go for fast track CIRP?

Section 55(2) covers debtors with assets and income below a notified level, those with a notified class of creditors or amount of debt, and other notified categories. All are decided by Central Government notification.

How is fast track CIRP different from regular CIRP?

Fast track is open only to notified categories of debtor. It also has a shorter limit of 90 days with a single extension of up to 45 days. Regular CIRP is open to any eligible corporate debtor.

Who can file a fast track CIRP application?

A creditor or the corporate debtor can file under Section 57. The filing needs proof of default from an information utility or other means specified by the Board, and eligibility information.