As per Section 240A of the IBC, 2016, which was introduced by the 2018 Amendment to the Code, makes an exception for MSMEs from Section 29A, which specifies the Non-MSME Corporate persons not eligible to be resolution ap

Basis CIRP PPIRP Legal Framework More in statute and less in More in statute and less in Threshold for initiating the process Default above ₹ 1 Crore Default above ₹ 10 Lakhs Initiation by Financial Creditor, Operational Creditor or Corporate Debtor Corporate Debtor with consent of majority of unrelated FCs Management of Corporate Debtor IP in possession with creditor in Control Debtor in possession with creditor in control Invitation and collation of claim IRP to invite and collate the claims Corporate Debtor to submit list of claims to RP and Resolution Professional also to invite and collate the claims Information Memorandum Prepared by Resolution Professional Draft prepared by Corporate Debtor and finalised by Resolution Professional Process Resolution Cost Includes cost of running the operations of the corporate debtor Doesn't include the cost of running the operations of the corporate debtor Swiss Challenge May/not to be followed while calling resolution plan Swiss Challenge is followed while calling the resolution plan Right of promoter to offer resolution plan If eligible under Section 29A and promoter is at par with other resolution applicants Promoters have first right to offer resolution plan subject to eligibility under Section 29A Early closure of the process By withdrawal under Section 12A or at the request of applicant Suo moto by CoC or with approval of 66% of voting share of members of CoC present and voting Consequence of the failure of the process Liquidation Closure or termination Role of RP and Adjudicating Authority Relatively more Relatively less Timeline of the process 180 days followed by 90 days extension subject to Adjudicating Authority approval 120 days