An IRP (Interim Resolution Professional) is a professional, qualified and appointed by the Insolvency and Bankruptcy Code (IBC), 2016, in the case of a company being placed in the insolvency proceedings. The IRP will assume control of the company at the first phase of the Corporate Insolvency Resolution Process (CIRP). Stated simply, an IRP is...
Category: Key Terms
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What is Moratorium?
Moratorium refers to a temporary suspension or interlude of some actions. In insolvency proceedings, it is a time in which a company is not liable to any recovery action or lawsuit and enforcement. Simply, moratorium affords the company a breathing space when it is in great financial distress. When Does it Apply? Moratorium typically comes...
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What is CIRP (Corporate Insolvency Resolution Process)?
CIRP is an abbreviation that means Corporation Insolvency Resolution Process. It is a legal procedure which is in the Insolvency and Bankruptcy Code (IBC), 2016 and is initiated when an organization fails to pay debts at the right time. In less complicated terms, CIRP is a time-based procedure to determine whether a financially crippled company...
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Financial Creditor: Meaning, Importance & Simple Example
Financial Creditor is a very frequent term in the corporate and insolvency news. The interpretation of this term makes it a lot easier to track the cases involving debt, bankruptcy, and NCLT. What is a Financial Creditor? A Financial Creditor refers to an individual or an institution that advances money to a company expecting the...
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What Is an Operational Creditor? Explained in Simple Words
If you go through business or legal news, you very often come across the term “Operational Creditor.” But what is that, actually? Let’s simplify it in simple words. What is an operational creditor? An operational creditor is a person or company that provides goods or services to another company and is owed money by them...
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Understanding, What is Insolvency and Bankruptcy Code (IBC) in India
Have you ever read in the news that a company “has been taken under IBC ” and wondered what it actually means? Many people hear the term “IBC” in business or commercial news but have no idea what it stands for or why it matters. This blog breaks it down in plain language so you...
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What Is NCLAT? Simple Meaning, Role, and How It Differs from NCLT
One legal institution in India that is relevant to appeals made in relation to a company is the National Company Law Appellate Tribunal (NCLAT). NCLAT is simply the destination one needs when he or she is not content with a decision by NCLT. It fulfills the role of a higher authority which revises and re-examines...
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What Is NCLT? Why the National Company Law Tribunal Matters in Business News
When a company refers to its case in front of the NCLT by way of a news story, the implication is generally related to either significant financial or legal challenges. A brief explanation of the meaning of the NCLT—National Company Law Tribunal—will help you understand its role within India’s corporate environment. The Purpose of NCLT...