Fast Track Insolvency Process With Respect To Start-Up

The Insolvency and Bankruptcy Code, 2016 (hereinafter referred as "the Code") passed by the Parliament is a welcome overhaul of the existing framework dealing with insolvency of corporate, individuals, partnerships and other entities. It paves the way for much needed reforms while focusing on creditors driven insolvency resolution. One of the main essences of the Code is Time Bound Resolution Process of the financial assets of the company. The Code gives timeline of 180 days for Corporate Insolvency Resolution Process (hereinafter referred as "CIRP"), which can be extended to 270 days, for completion of the resolution process¹. However, the Code also provides provisions to expedite more the resolution process in the form of Fast Track Insolvency Resolution Process. It aims to accelerate the insolvency resolution process of certain categories of corporate debtors with lesser complexities. The fast track process which can be initiated by a creditor or the corporate debtor