Government Notifies IBC Amendment Act 2026 Provisions

The Central Government has notified 26-05-2026 as the date on which various provisions of the Insolvency and Bankruptcy Code (Amendment) Act, 2026 shall come into force.

The notification operationalises several important amendments relating to insolvency resolution, liquidation and creditor-driven insolvency mechanisms under the Insolvency and Bankruptcy Code, 2016.

1. Amendments Relating to Admission of CIRP Applications

The notified provisions include amendments concerning admission of applications for initiation of the Corporate Insolvency Resolution Process (CIRP) under:

• Section 7 – Applications by financial creditors
• Section 9 – Applications by operational creditors
• Section 10 – Applications by corporate applicants

The amendments will govern procedural and substantive aspects relating to initiation and admission of insolvency proceedings.

2. Provisions Relating to Withdrawal of Applications Under Section 12A

The notification also brings into force amendments relating to withdrawal of insolvency applications under Section 12A of the Code.

These provisions concern withdrawal of admitted CIRP proceedings subject to the prescribed legal framework and approval requirements.

3. Amendments Relating to Liquidation Process

Certain amendments concerning liquidation proceedings under the Insolvency and Bankruptcy Code have also been notified.

The changes are intended to strengthen and streamline liquidation-related procedures under the insolvency framework.

4. Provisions Relating to Avoidance Transactions

The notified provisions further include amendments relating to avoidance transactions, including transactions that may be subject to scrutiny and reversal under the Code.

These provisions form part of the framework for protecting value and preventing prejudicial transactions affecting creditors’ interests.

5. Creditor-Initiated Insolvency Resolution Process Under New Chapter IV-A

A significant notified amendment includes operationalisation of the creditor-initiated insolvency resolution process under the newly introduced Chapter IV-A.

The framework is intended to provide an additional insolvency resolution mechanism enabling creditor-led initiation and resolution in accordance with prescribed statutory requirements.

6. Effective Date of Implementation

The above provisions of the Insolvency and Bankruptcy Code (Amendment) Act, 2026 shall come into force from 26-05-2026.

Accordingly, insolvency proceedings and related matters covered by the notified provisions shall be governed by the amended legal framework from the effective date onwards.

7. Objective of the Notification

The notification aims to operationalise key amendments introduced under the Insolvency and Bankruptcy Code (Amendment) Act, 2026 to strengthen insolvency resolution, improve procedural efficiency and expand the available mechanisms for creditor-led resolution and recovery under the insolvency framework.