Lok Sabha Passes IBC Amendment Bill 2026 for Faster Resolutions
- News|Blog|Insolvency and Bankruptcy Code|
- 2 Min Read
- By Taxmann
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- Last Updated on 2 April, 2026
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Bill No. 107-C of 2025, Dated: 30.03.2026
The Insolvency and Bankruptcy Code (Amendment) Bill, 2026, as passed by the Lok Sabha, introduces key reforms aimed at enhancing efficiency, strengthening creditor rights, and maximising value under the insolvency framework.
1. Introduction of Creditor-Initiated Resolution Process
The Bill provides for a creditor-initiated insolvency resolution process, enabling creditors to take a more proactive role in triggering and steering insolvency proceedings.
This is expected to improve timeliness and effectiveness in addressing stressed assets.
2. Strengthening of Timelines
The amendments focus on enforcing stricter timelines across various stages, including:
- Admission of insolvency applications
- Approval of resolution plans
- Liquidation proceedings
This aims to reduce delays and ensure time-bound resolution.
3. Enhanced Role of Committee of Creditors (CoC)
The Bill strengthens the powers and responsibilities of the Committee of Creditors (CoC) by:
- Expanding its role during the resolution phase
- Extending its influence into the liquidation stage
This ensures that creditors have greater control over key decisions impacting recoveries.
4. Clarifications on Key Aspects
To improve clarity and reduce litigation, the Bill provides specific guidance on:
- Treatment of claims
- Handling of guarantor assets
- Avoidance transactions (such as preferential, undervalued, or fraudulent transactions)
These clarifications aim to streamline proceedings and minimise interpretational disputes.
5. Focus on Efficiency and Value Maximisation
Overall, the amendments are designed to:
- Improve process efficiency
- Reduce legal uncertainties
- Maximise value realisation for stakeholders
6. Conclusion
The Bill represents a significant step towards strengthening India’s insolvency regime, making it more creditor-driven, time-bound, and outcome-focused, while enhancing confidence among investors and financial institutions.
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