Corporate Insolvency Resolution Process

The Corporate Insolvency Resolution Process (CIRP) is a procedure in business law that occurs when a company cannot pay its debts. It aims to find a way to either revive the company or ensure fair repayment to creditors. Under CIRP, a resolution professional is appointed to manage the company's operations and facilitate negotiations with creditors. A committee of creditors then evaluates proposals from potential buyers or turnaround plans. If a viable solution is found, the company can continue operating; if not, it may face liquidation, where its assets are sold to pay off debts.