Section 56 IBC: Time Period for Fast Track CIRP - Omitted
Section 56 formerly prescribed the time limit for completing the Fast Track Corporate Insolvency Resolution Process under Chapter IV of Part II of the Insolvency and Bankruptcy Code, 2016. The former provision required completion within 90 days, subject to a one-time extension of up to 45 days. Chapter IV, comprising Sections 55 to 58, was omitted in 2026.
Former Section 56 - Time Period for Completion of Fast Track Corporate Insolvency Resolution Process
(1) Subject to the provisions of sub-section (3), the fast track corporate insolvency resolution process shall be completed within a period of ninety days from the insolvency commencement date.
(2) The resolution professional shall file an application to the Adjudicating Authority to extend the period of the fast track corporate insolvency resolution process beyond ninety days if instructed to do so by a resolution passed at a meeting of the committee of creditors and supported by a vote of seventy five percent of the voting share.
(3) On receipt of an application under sub-section (2), if the Adjudicating Authority is satisfied that the subject matter of the case is such that fast track corporate insolvency resolution process cannot be completed within a period of ninety days, it may, by order, extend the duration of such process beyond the said period of ninety days by such further period, as it thinks fit, but not exceeding forty-five days:
Provided that any extension of the fast track corporate insolvency resolution process under this section shall not be granted more than once.
Former 90-Day Completion Period
Former Section 56(1) required a fast track corporate insolvency resolution process to be completed within 90 days from the insolvency commencement date. The shorter period distinguished the former fast track process from the ordinary corporate insolvency resolution process.
Former Extension Procedure
Under the text of former Section 56(2), the resolution professional was required to apply to the Adjudicating Authority for an extension beyond 90 days when instructed by a resolution passed at a meeting of the committee of creditors and supported by the voting share specified in that provision.
Maximum Extension of 45 Days
Former Section 56(3) authorised the Adjudicating Authority to extend the process where satisfied that the case could not be completed within 90 days. The additional period could not exceed 45 days, and the proviso expressly restricted the extension to one occasion.
Meaning of Insolvency Commencement Date
The IBC uses the insolvency commencement date as the statutory starting point for several insolvency timelines. In the former Section 56 framework, the 90-day fast track completion period was calculated from that date.
Relationship with Former Sections 55, 57 and 58
Former Section 55 identified the fast track process and categories of corporate debtors that could be covered. Former Section 57 dealt with initiation, while former Section 58 addressed the application of Chapter II provisions to the fast track framework. These provisions formed the former Chapter IV and were omitted in 2026.
Current Insolvency Resolution Framework
Following the 2026 changes, the former fast track Chapter IV should not be confused with the separate Creditor-Initiated Insolvency Resolution Process framework introduced through Chapter IV-A. Current proceedings should be assessed under the provisions presently applicable to the relevant insolvency process rather than the historical Section 56 timeline.
Official Legal Resources
For the current Code, amendments, commencement notifications, regulations and circulars, refer to the official Insolvency and Bankruptcy Board of India Legal Framework and the Government of India's India Code.
This page preserves the former Section 56 text for legal and historical reference while identifying its current omitted status. The latest statutory text, commencement notifications, regulations and binding judicial decisions should be checked for any proceeding.