Amendments To The IBC, 2016

Nearly a decade after the Insolvency and Bankruptcy Code, 2016 ("IBC") came into force, the Insolvency and Bankruptcy Code (Amendment) Bill, 2026, received the assent of the President of India on 6th April 2026 and shall come into force on such date as the Central Government notifies the same in the Official Gazette. The Amendment Bill is being introduced to resolve certain practical challenges that are causing delays at the admission stage, uncertainty in distribution outcomes, increasing litigation, and issues in implementation of an approved resolution plans.

The critical amendments as introduced vide the Amendment Bill of 2026 are as follows:

1. Admission of Section 7 Application

The Amendment now makes it mandatory for the Adjudicating Authority to admit a Section 7 Petition within 14 days of receipt of the application on the basis that there is a debt and a default and there is no disciplinary proceedings against proposed Interim Resolution Professional. If the above two