- Why in news
- On 19 May 2026, the Department of Financial Services held a half-day workshop in New Delhi on the Insolvency and Bankruptcy (Amendment) Act, 2026, to discuss its impact on banks and implementation of the amended provisions.
- What it is
- The Insolvency and Bankruptcy Code, 2016 is the single law for time-bound resolution of insolvency of companies, partnerships and individuals. It is creditor-driven: the Committee of Creditors decides on a resolution plan, and liquidation is the last resort. The 2026 Amendment Act changes the Code, including provisions on group insolvency, cross-border insolvency and creditor-initiated resolution.
- Amendment areas
- The recent amendments relate to group insolvency, cross-border insolvency and the creditor-initiated insolvency resolution process.
- CIRPs admitted
- More than 8,800 CIRPs were admitted under the Code till December 2025.
- Recoveries
- Creditors realised over ₹4.11 lakh crore through approved resolution plans, and over 4,000 corporate debtors were rescued.
- Regulator
- The Insolvency and Bankruptcy Board of India (IBBI) regulates insolvency professionals, agencies and information utilities under the Code.
- Adjudicating authority
- The NCLT hears corporate insolvency cases, with appeals to the NCLAT. The DRT handles individual and partnership firm cases.
- Workshop participants
- The workshop included MCA, IBBI, public sector banks, NARCL, IDRCL and ASREC (India) Limited.
Don’t confuse with IBBI vs NCLT: IBBI is the regulator of insolvency professionals and agencies. NCLT is the adjudicating authority that admits cases and approves resolution plans.
Don’t confuse with NARCL/IDRCL vs IBBI: NARCL is an asset reconstruction company that acquires stressed loans from banks, and IDRCL is its management arm. IBBI is a regulator.
Laws, judgments and statutory bodies: 30 Prelims questions since 2013 (what the law says, who chairs, legal basis). In Mains, 44 news-triggered questions, most in GS2, asking for provisions and challenges.
Why it matters
- Time-bound, creditor-driven resolution improves credit discipline and recoveries.
- Cross-border and group insolvency provisions fill gaps for multinational and interlinked company groups.
Problems
- Delays, capacity constraints and prolonged litigation persist, as officials noted.
- Creditors often take large haircuts on admitted claims.
Way forward
- Strengthen tribunal capacity and enforce strict timelines.
- Train stakeholders on the amended provisions so they are applied uniformly.
Put in your answer
IBC outcomes to December 2025: More than 8,800 CIRPs were admitted, creditors realised over ₹4.11 lakh crore through approved plans, and over 4,000 corporate debtors were rescued.
Delays and litigation: The Special Secretary, DFS stressed the need to address delays, capacity constraints and prolonged litigation.
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
No practice question for this one; the card may still help an answer. Why: A workshop on a lasting law; the release gives no provisions of the amendment, so too thin for a question.
Worth revising until Prelims 2027: most news questions come within two years of the event.