Corporate Insolvency Resolution Process (IRP) is a term that refers to the process of resolving a company' It is a procedure governed by the 2016 Insolvency and Bankruptcy Code. (India's bankruptcy law is the Insolvency and Bankruptcy Code, 2016 (IBC).)


In the event that a corporate debtor fails to repay its creditors, the financial creditor(s) has the authority to initiate the insolvency resolution procedure. An application to the National Company Law Tribunal is required to begin the settlement procedure (NCLT).
On NCLT's acceptance of the application, the Creditors' claims (i.e. company assets) will be frozen for a period of six months. During this time, the NCLT will consider the many possibilities for reviving the company and determine the best course of action, which could include debt settlement, corporate restructuring, or liquidation. This procedure is carried out in stages.

On such equities, the exchanges will implement additional surveillance mechanisms. Intraday trading and BTST will be prohibited, with 100 percent margins required.