The Insolvency and Bankruptcy Code, 2016 (IBC) introduced a unified, creditor-driven and time-bound mechanism for resolving financial distress
Creditors realized nearly ₹4.32 lakh crore through approved resolution plans till March 2026
The Insolvency and Bankruptcy Code (Amendment) Act, 2026 introduces reforms to reduce delays, strengthen creditor oversight and improve procedural clarity
8,987 Corporate Insolvency Resolution Processes (CIRPs) have been admitted under the Code till March 2026
1,419 corporate debtors were resolved through approved resolution plans
Recoveries exceeded 116.85% of liquidation value and more than 94.56% of fair value
RBI's Report on Trends and Progress of Banking in India for 2024-25 shows SCBs recovered ₹1,04,099 crore through various channels
IBC contributed ₹54,528 crore, accounting for 52.4% of total recoveries, higher than SARFAESI, Debt Recovery Tribunals and Lok Adalats
IIM Ahmedabad study shows creditors recovered 32% of admitted claims and 168% of liquidation value
Resolved firms saw 76% sales growth, reached operational break-even by the third year
Employee expenses increased by 50% indicating higher employment
Total assets of resolved companies grew by 50%
Capital expenditure rose 130%
Market valuations tripled from ₹2 lakh crore to ₹6 lakh crore for listed firms
Liquidity improved by 80%
IIM Bangalore study shows 3% reduction in cost of debt and improved governance through increased independent directors
Study notes significant reduction in loan accounts deemed 'Overdue' in both rupee amount and number of accounts
Yearly proportion of transitions from 'Overdue' to 'Normal' category increased
Average days in 'Overdue' category reduced from 248-344 days to 30-87 days
The Amendment Act of 2026 provides specific definitions for terms including "service provider", "avoidance transaction" and "fraudulent or wrongful trading"
Adjudicating Authority must decide applications within 14 days, with reasons required for delays
Withdrawal restrictions: cannot occur before CoC constitution or after resolution plans are invited
Moratorium protection extended to guarantee situations
Amendment allows assets of guarantors to be included in resolution process
Dissenting creditors guaranteed to receive at least the lower of liquidation value or amount receivable under resolution plan
Amendment allows one-time restoration of resolution process before liquidation finalization
Introduces creditor-initiated insolvency resolution process for specified categories of corporate debtors
