By S&S Co. Advocates & Solicitors · Published 29 September 2026 · Informational content, not legal advice: see our disclaimer
Overview
A guide for small companies, startups and companies with straightforward asset structures explaining the fast-track CIRP available under Section 55 of the IBC, its eligibility criteria, and how its compressed timelines compare to the ordinary CIRP.
What You Need to Know
- Section 55 of the IBC and the associated Fast Track Insolvency Resolution Process Regulations permit a Corporate Insolvency Resolution Process to be conducted on a compressed timeline for eligible categories of corporate debtors, including small companies, startups (other than partnership firms), and unlisted companies with assets and income below prescribed thresholds.
- The fast-track process is designed to be completed within 90 days from the insolvency commencement date, in contrast to the ordinary CIRP's 180-day period (extendable up to a 330-day outer limit): reflecting the expectation that eligible corporate debtors will typically have simpler capital structures, fewer creditors and less complex assets to resolve.
- The adjudicating authority may grant a one-time extension of up to 45 days on an application by the resolution professional, supported by a CoC resolution passed with not less than 66% of the voting share, meaning the fast-track process cannot ordinarily extend beyond 135 days in total.
- The substantive process: public announcement, claims collection, CoC constitution, invitation of resolution plans and CoC approval: mirrors the ordinary CIRP, but each stage carries materially shorter internal timelines under the Fast Track Regulations, making early creditor and stakeholder engagement especially important for participants.
- Where the compressed timeline proves genuinely insufficient: for example, because unanticipated complexity in the corporate debtor's affairs emerges. Stakeholders should be alert to the limited scope for extension and consider whether converting to the ordinary CIRP track (where permitted) may better serve an orderly resolution.
Frequently Asked Questions
Which corporate debtors are eligible for fast-track CIRP?
Small companies, startups (other than partnership firms) and unlisted companies with total assets and annual turnover below the thresholds prescribed under the Fast Track Insolvency Resolution Process Regulations.
How long does a fast-track CIRP take compared to the ordinary process?
A fast-track CIRP is designed to complete within 90 days from insolvency commencement, against the ordinary CIRP's 180-day period (extendable to a 330-day outer limit), with only a single 45-day extension available in the fast-track process.
Can the 90-day fast-track period be extended?
Yes, but only once, for up to 45 days, on an application by the resolution professional supported by a CoC resolution passed with not less than 66% of the voting share. There is no scope for repeated extensions as in the ordinary CIRP.
References & Further Reading
This guide references the following statutes, rules and sources, cross-checked at the time of writing.
- Section 55 IBC and Fast Track Insolvency Resolution Process Regulations eligibility criteria and the 90-day (+45-day) timeline: well-settled statutory and regulatory framework, confirmed via IBBI regulations and practitioner commentary at research time
- Comparison with the ordinary CIRP's 180-day/330-day framework: confirmed via our companion guide on IBC resolution timelines at research time
- See also our IBC & Insolvency Notable Judgments and Legal Updates: IBC & Insolvency archive.