The Insolvency and Bankruptcy Code (Amendment) Act, 2026, notified on 6 April 2026, represents the most significant reform of India's insolvency framework since the enactment of the IBC in 2016. The amendments are aimed at reducing procedural delays, strengthening creditor rights, enhancing accountability, and improving the overall efficiency of insolvency resolution. The Act clarifies that a security interest exists only when created through an agreement, thereby limiting certain statutory claims. It mandates that the NCLT admit or reject insolvency applications within 14 days and provides that proven default is sufficient ground for admission. Once the Committee of Creditors (CoC) is constituted and resolution plans are invited, withdrawal of insolvency proceedings is no longer permitted. The moratorium during CIRP has also been expanded to protect the corporate debtor from actions initiated by guarantors. The amendments significantly strengthen the powers of the CoC by enabling it to supervise and replace liquidators, revive CIRP before liquidation, and seek dissolution where liquidation is commercially unviable. Creditors are also empowered to independently report suspect transactions if insolvency professionals fail to act. A major innovation is the introduction of the Creditor-Initiated Insolvency Resolution Process (CIIRP), which allows financial creditors holding at least 51% of the debt to commence an out-of-court resolution process while the existing management remains in control under professional supervision. With a prescribed timeline of 150 days, CIIRP is expected to reduce the burden on NCLT benches and facilitate faster resolution of stressed businesses.

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