Despite this, the primary criticism of the IBC remains its long timelines. By late 2025, the Insolvency and Bankruptcy Board of India (“IBBI”) recorded that the average duration of the Corporate Insolvency Resolution Process (“CIRP”) had drifted past 600 days, far exceeding the statutory limit of 330 days under Section 12(1).
The Insolvency and Bankruptcy Code (Amendment) Bill, 2025 – extensively evaluated by the select committee and enacted as the Insolvency and Bankruptcy (Amendment) Act, 2026 – addresses these systemic delays. By introducing out-of-court pathways, like the Creditor-Initiated Insolvency Resolution Process (CIIRP), a restructured two-stage Section 31 resolution mechanism, and extending CoC authority into the…