By S&S Co. Advocates & Solicitors · Published 5 August 2026 · Informational content, not legal advice
About this article: A general explainer prepared by S&S Co. Advocates & Solicitors on a recurring type of dispute. It does not report a specific judgment or order, names no parties and gives no case citation, so it should not be cited as authority. Law and practice change; please verify against the current statute and primary sources before relying on it.
Section 12 of the Insolvency and Bankruptcy Code, 2016 requires the corporate insolvency resolution process to be completed within 180 days, with one extension of up to 90 days on the application of the committee of creditors, and an outer limit of 330 days including litigation time. The Supreme Court has said that the outer limit is directory in suitable cases, not mandatory, and has permitted extensions where the delay was due to circumstances beyond the parties' control.
The Code has been the subject of amendment proposals aimed at making time limits firmer and tightening the circumstances in which extension can be granted. Anyone relying on a particular timeline or extension standard should check the text of Section 12 as currently in force and the date from which any amendment applies.
Whatever the precise standard, tribunals look at whether an extension application is supported by specifics: what has been done, what remains, who is responsible and when it will be completed. A general statement that a resolution applicant's offer is imminent is generally weaker than documented milestones and a dated plan.
Key Points
- Section 12 sets 180 days with a possible 90-day extension and a 330-day outer limit.
- Check the text of the section as currently in force and any amendment's effective date.
- An extension application is stronger with dated milestones and a completion plan.