The Government of India has officially tabled the Insolvency and Bankruptcy Code (Amendment) Bill, 2026 in the Lok Sabha. The proposed legislation represents the most significant overhaul of India’s distressed asset framework since the code’s inception in 2016, aiming to slash resolution timelines and integrate artificial intelligence into the judicial process.
The bill arrives at a critical juncture as the National Company Law Tribunal (NCLT) faces a record backlog of over 25,000 cases, with the average resolution time stretching to 653 days—far beyond the original 330-day legal mandate.
1. The “Project Samadhan” AI Integration
The cornerstone of the 2026 Bill is the formal legal recognition of Project…