When the Insolvency and Bankruptcy Code was introduced in 2016, it replaced a fragmented web of recovery laws with a single economic logic: fast resolution would preserve value. Nearly a decade later, the Parliamentary Standing Committee on Finance has concluded that each of the Code’s core pillars, speed, certainty and creditor control, is now under strain.
Over 30,600 insolvency cases are pending before the National Company Law Tribunal, which operates with only about 30 fully functional benches. The Insolvency and Bankruptcy Board of India has recommended the creation of at least 50 additional NCLT benches to restore time-bound…