Insolvency and Bankruptcy Code (Amendment) Act, 2026
No. 6 of 2026 — Received Presidential assent on April 6, 2026, marking the most comprehensive overhaul of the IBC since its enactment a decade ago. The amendment addresses chronic systemic failures identified by the Parliamentary Standing Committee on Finance, including an average CIRP resolution time of 713 days against the statutory 330-day limit and severely low avoidance-transaction recoveries. Key changes include a mandatory 14-day admission timeline for the NCLT, a new Creditor-Initiated Insolvency Resolution Process (CIIRP) allowing bank-led out-of-court initiation, separation of the resolution professional and liquidator roles, a statutory floor for dissenting financial creditors pegged to liquidation value, enabling frameworks for group and cross-border insolvency, clean-slate protection for approved resolution plans, stronger avoidance-transaction mechanisms, stiffer penalties for frivolous proceedings, and tightened withdrawal rules requiring 90% CoC approval — with legal experts cautioning that while the reforms improve flexibility, their effectiveness will ultimately depend on NCLT infrastructure capacity and consistent judicial interpretation.
