Section 57 of IBC 2016: How to Initiate Fast Track Corporate Insolvency Resolution

Section 57 specifies who may initiate a fast track corporate insolvency resolution process (fast track CIRP) and the evidence that must accompany an application. It operates alongside the eligibility rules in Section 55 and the procedural framework under the Code.

Updated: 21 October 2026 | Indian insolvency law

Text of Section 57

Meaning and purpose of Section 57

The provision creates two separate documentary requirements: evidence of a default and evidence that the corporate debtor qualifies for the fast track route. Merely demonstrating non-payment does not by itself establish eligibility for this special process.

Important legal terms

• Corporate debtor: a corporate person who owes a debt to any person (Section 3(8)).
• Default: non-payment of a debt when the whole or any part or instalment has become due and payable and is not paid (Section 3(12)).
• Creditor: a person to whom a debt is owed, including financial and operational creditors, as defined in Section 3(10).
• Information utility: a person registered with the Insolvency and Bankruptcy Board of India as an information utility under Section 210 (Section 3(21)).
• Board: the Insolvency and Bankruptcy Board of India, established under Section 188 (Section 3(1)).

Who may file an application?

Section 57 allows a creditor or the corporate debtor to apply, as applicable. The filing must also satisfy the relevant provisions governing applications by financial creditors, operational creditors or corporate applicants, read with Section 58 and the applicable rules and regulations. The competent adjudicating authority for corporate persons is ordinarily the National Company Law Tribunal (NCLT).

Documents and evidence required

• Proof of default: an information utility record or another permitted form of evidence.
• Proof of fast track eligibility: records demonstrating that the corporate debtor falls within a category notified under Section 55(2).
• Other prescribed particulars: applicable forms, supporting records, authorisations and fees under the governing procedural rules.

The exact filing requirements depend on the applicant's legal status and the rules in force when the application is submitted.

Eligibility under Section 55

Section 55 provides for fast track CIRP for notified classes of corporate debtors. Government notifications issued in 2017 covered specified small companies, qualifying start-ups and certain unlisted companies with assets not exceeding Rs. 1 crore, subject to the precise terms and definitions of those notifications. Applicants should verify the currently operative notification and eligibility criteria before filing.

Time limit under Section 56

Section 56 provides for completion within 90 days from the insolvency commencement date, with a possible one-time extension of up to 45 days by the adjudicating authority on a qualifying application. The extension mechanism requires the prescribed committee of creditors approval.

Related statutory provisions

• Section 55: fast track corporate insolvency resolution process and eligible categories.
• Section 56: time period for completion.
• Section 58: application of Chapter II provisions to the fast track process, with necessary modifications.
• Sections 7, 9 and 10: initiation by financial creditors, operational creditors and corporate applicants, respectively, where applicable.

Official legal sources

• Ministry of Corporate Affairs: Insolvency and Bankruptcy Code, 2016
• India Code: official text of the IBC
• IBBI: Fast Track Insolvency Resolution Process Regulations, 2017 (published consolidation)
• Government announcement of fast track regulations

For the broader legislation, see The Insolvency and Bankruptcy Code, 2016.