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IBC

About IBC

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What is IBC

Insolvency and Bankruptcy Code (IBC) 2016 was implemented through an act of Parliament. It got Presidential assent in May 2016.
 
Centre introduced the IBC in 2016 to resolve claims involving insolvent companies.
 
The bankruptcy code is a one stop solution for resolving insolvencies, which previously was a long process that did not offer an economically viable arrangement. The code aims to protect the interests of small investors and make the process of doing business less cumbersome. The IBC has 255 sections and 11 Schedules.
 
IBC was intended to tackle the bad loan problems that were affecting the banking system.
 
The IBC process has changed the debtor-creditor relationship. A number of major cases have been resolved in two years, while some others are in advanced stages of resolution.
 
It provides for a time-bound process to resolve insolvency. When a default in repayment occurs, creditors gain control over debtor’s assets and must take decisions to resolve insolvency. Under IBC, debtor and creditor both can start 'recovery' proceedings against each other.
 
Companies have to complete the entire insolvency exercise within 180 days under IBC. The deadline may be extended if the creditors do not raise objections on the extension. For smaller companies, including startups with an annual turnover of Rs 1 crore, the whole exercise of insolvency must be completed in 90 days and the deadline can be extended by 45 days. If debt resolution doesn't happen the company goes for liquidation.
 
IBC was intended to tackle the bad loan problems that were affecting the banking system.
 
The IBC process has changed the debtor-creditor relationship. A number of major cases have been resolved in two years, while some others are in advanced stages of resolution.
 
It provides for a time-bound process to resolve insolvency. When a default in repayment occurs, creditors gain control over debtor’s assets and must take decisions to resolve insolvency. Under IBC, debtor and creditor both can start 'recovery' proceedings against each other.
 
Companies have to complete the entire insolvency exercise within 180 days under IBC. The deadline may be extended if the creditors do not raise objections on the extension. For smaller companies, including startups with an annual turnover of Rs 1 crore, the whole exercise of insolvency must be completed in 90 days and the deadline can be extended by 45 days. If debt resolution doesn't happen the company goes for liquidation.
 

Latest Updates on IBC

CoC must list reasons for approving resolution plan in new IBC Bill: FM

The amended IBC Bill requires the Committee of Creditors to record reasons for selecting resolution applicants, while introducing timelines for NCLAT and faster approval of plans

Updated On: 30 Mar 2026 | 11:17 PM IST

Insolvency law crucial in improving health of banking sector: FM Sitharaman

Finance and Corporate Affairs Minister Nirmala Sitharaman on Monday said that more than half of the NPAs (Non-Performing Assets) have been recovered by the banks through the resolution process

Updated On: 30 Mar 2026 | 1:33 PM IST

IBC helped recover over ₹4 trillion in last decade: Anurag Thakur

Participating in the debate on the Insolvency and Bankruptcy Code (Amendment) Bill, 2025, Thakur said IBC is not a recovery mechanism but a revival and resurrection of the company

Updated On: 25 Mar 2026 | 8:32 PM IST

Committee of Creditors not beyond judicial oversight, says Supreme Court

The Supreme Court said CoC's commercial decisions are not immune from scrutiny where illegality or jurisdictional lapses are established

Updated On: 24 Mar 2026 | 9:25 PM IST

When resolution becomes recovery: Shift towards enforcement framework

The IBC was designed to address collective action problems and prevent a race for enforcement that destroys going-concern value

Updated On: 17 Mar 2026 | 10:29 PM IST

IBBI pushes transparency as CoC decisions in bankruptcy cases draw scrutiny

Recent proposals by the insolvency regulator aim to increase transparency and accountability in the Committee of Creditors' decisions after the Supreme Court flagged gaps in the IBC process

Updated On: 10 Mar 2026 | 8:59 PM IST

FinMin asks banks to step up efforts to reduce delays in IBC cases

At a review meeting, the finance ministry directed public sector banks to minimise adjournments and speed up CIRP filings, aiming to accelerate NCLT admission and resolution timelines

Updated On: 09 Mar 2026 | 8:45 PM IST

IBBI mandates listing all homebuyers in a firm's information memorandum

IBBI has required information memoranda to include details of all homebuyers, even those who have not filed claims, and introduced reforms to strengthen valuation standards under the IBC

Updated On: 26 Feb 2026 | 5:04 PM IST

IBBI proposes new norms to strengthen CoC oversight and transparency

IBBI's discussion paper recommends detailed CoC deliberation records, mandatory going-concern assessments and clarified rules on delayed claims to improve IBC transparency and discipline

Updated On: 17 Feb 2026 | 11:32 PM IST

Telecom spectrum can't be treated as asset under IBC: Supreme Court

Court holds spectrum is a material resource of the community and cannot form part of insolvency asset pool; DoT free to reclaim airwaves from defaulters

Updated On: 13 Feb 2026 | 11:47 PM IST

Telecom firms can't use IBC moratorium to defer spectrum dues, says SC

The Supreme Court ruled that telecom companies cannot use insolvency law to delay or restructure licence and spectrum dues, saying spectrum is a public resource, not a company asset

Updated On: 13 Feb 2026 | 1:05 PM IST

Budget 2026-27: FM Nirmala Sitharaman for 'a lot more on disinvestment'

Says IBC amendment Bill will come up in second half of Budget session

Updated On: 03 Feb 2026 | 12:17 AM IST

Supreme Court allows joint insolvency plea against linked realty companies

The Supreme Court has allowed a single insolvency plea against multiple real estate firms where entities are closely linked in a project's execution and operations

Updated On: 02 Feb 2026 | 8:57 PM IST

IBC transformed insolvency landscape, but challenges remain: DFS secretary

To facilitate an expeditious resolution process under IBC and to ensure proper implementation of IBC, six amendments have been carried out in the IBC since its inception in 2016

Updated On: 28 Jan 2026 | 7:10 PM IST

The long road to recovery: Need to expand NCLT strength to reduce delays

India's bad loan problem is easing, but rising delays at the NCLT highlight the urgent need to expand tribunal strength to speed up insolvency resolution

Updated On: 18 Jan 2026 | 11:24 PM IST

The Great Revival: A book that captures the CG Power turnaround story

How an out-of-the-box approach helped the company come back from bankruptcy

Updated On: 07 Jan 2026 | 10:41 PM IST

Section 29A and the cost of treating business failure as misconduct

The IBC must not conflate business failure with malfeasance, or an unfortunate entrepreneur with a fraudulent one

Updated On: 07 Jan 2026 | 10:10 PM IST

Fixing the fine print: What the IBC amendment is really trying to change

Focused on enforcement over fresh ideas, the IBC amendment Bill seeks to cut delays, curb conflicts of interest and bring greater certainty to insolvency resolutions

Updated On: 30 Dec 2025 | 5:05 PM IST

Recovery under IBC improves to nearly 37% in FY25 despite fewer cases

RBI data shows banks improved recovery outcomes under the IBC and SARFAESI in 2024-25 even as the number of cases referred for resolution declined

Updated On: 29 Dec 2025 | 11:06 PM IST

Best of BS Opinion: NCLT courts must fix institutional gaps

From tribunal capacity and procedural certainty to tanker seizures that could hit India's economy, today's Best of BS Opinion also looks at Budget-impact laws, AI agents, and a book on sanctions

Updated On: 24 Dec 2025 | 6:15 AM IST