The norms for fast-tracking the process have been notified under the Insolvency and Bankruptcy Code.
"The process in these cases shall be completed within a period of 90 days, as against 180 days in other cases. However, the adjudicating authority may, if satisfied, extend the period of 90 days by a further period up to 45 days for completion of the process," an official release said today.
In this regard, the Insolvency and Bankruptcy Board of India (IBBI) has notified the regulations for 'Fast Track Insolvency Resolution Process for Corporate Persons'.
The latest regulations detail about the process to be followed from initiation of insolvency resolution of eligible corporate debtors till its conclusion with the approval of the resolution plan by the adjudicating authority.
"A creditor or a corporate debtor may file an application, along with the proof of the existence of default, to the adjudicating authority for initiating fast track resolution process," the release said.
Once the application is admitted and if the interim resolution professional (IRP) is of the opinion that the fast track process is not applicable to the particular entity, then the same needs to be intimated to the adjudicating authority within 21 days.
The IRP would ask the authority to pass an order to convert the corporate insolvency resolution process from being fast-track to a normal one.