Nearly a decade after it changed the way India deals with corporate distress, the Insolvency and Bankruptcy Code is entering its next phase. The Insolvency and Bankruptcy Code (Amendment) Act, 2026 seeks to make the country’s insolvency regime more efficient, predictable and resolution-oriented, building on a law that has reshaped recovery, credit discipline and corporate resolution.
From fragmented laws to one framework
Before the IBC came into force in 2016, financially stressed companies were dealt with through a maze of legal routes. Company law, the Sick Industrial Companies Act, debt recovery mechanisms and secured creditor frameworks such as SARFAESI all operated through separate forums and procedures. The…