The Parliament on Wednesday passed the Insolvency and Bankruptcy Code (Amendment) Bill, 2026.
The IBC was enacted in 2016 to create a time-bound mechanism to deal with companies that default on their loans — by reviving them through resolution or liquidating them if resolution is not possible.
The amendment seeks to speed up the resolution process and introduces provisions for an out-of-court mechanism, group insolvency and cross-border insolvency.
Why were these amendments needed?
Before this amendment, the IBC had already been amended six times to address the pressing issues of the time and incorporate the needs of the stakeholders.
