The Insolvency and Bankruptcy Code (Amendment) Act, 2026 is a legislative Act that makes extensive revisions to the parent Insolvency and Bankruptcy Code, 2016 (IBC). The Act received Presidential assent on April 6, 2026, and was created to address practical challenges like delays, litigation, and procedural bottlenecks that arose since the IBC's introduction.
The core mechanism of the amendment focuses on accelerating the resolution process and strengthening creditor oversight. A key provision mandates that the National Company Law Tribunal (NCLT) shall admit or reject an application for the Corporate Insolvency Resolution Process (CIRP) from a financial creditor within 14 days. This tight timeline aims to reduce judicial discretion and procedural delays.
The Act introduces a major new concept: the Creditor-Initiated Insolvency Resolution Process (CIIRP), a hybrid out-of-court resolution mechanism inserted under Chapter IV-A of the Code. This new process allows notified financial creditors to initiate an early-stage resolution. Furthermore, the Act expands the "look-back" period for avoidance transactions, such as preferential or undervalued transactions, to two years before the insolvency petition date, up from one year, to capture more suspect dealings.
The legislation connects directly to the IBC, 2016, and its framework involves the NCLT and the Committee of Creditors (CoC). It also introduces enabling frameworks for group and cross-border insolvency, aligning India's regime with international standards. A significant change in the liquidation process is the insertion of Section 33(1A), which allows the CoC, with 66% voting approval, to restore the CIRP for up to 120 days even after a liquidation order has been passed, providing a "second chance" to salvage the corporate debtor. The Act also reinforces the 'clean-slate principle', ensuring that an approved resolution plan extinguishes prior claims against the corporate debtor.