The Lok Sabha passed the Insolvency and Bankruptcy (Amendment) Bill 2026, introducing critical reforms to India's insolvency framework. The amendments aim to expedite the resolution process, strengthen creditor rights, and enable cross-border insolvency resolution in line with the UNCITRAL Model Law.

Key provisions include a strict timeline of 330 days for completing the Corporate Insolvency Resolution Process (CIRP), enhanced powers for the Committee of Creditors (CoC), changes to the existing pre-packaged insolvency framework for MSMEs, first introduced in 2021, and mechanisms for cross-border insolvency proceedings. The Bill also addresses issues of delayed resolutions that have plagued the system since the IBC was enacted in 2016.

The original Insolvency and Bankruptcy Code 2016 was a landmark reform that consolidated India''s fragmented insolvency laws. However, with average resolution timelines exceeding 500 days and low recovery rates, the amendments seek to strengthen the framework and restore confidence in the resolution process.