Authors: Mr. Ajay Shaw (Partner), Mr. Ashish Pahariya (Partner), Mr. Soham Mookherjee (Associate Partner), Ms. Anisha Kumar (Associate Partner)
In this IBC update, we bring to you an in-depth look at the key changes introduced by the IBC (Amendment) Act, 2026, one of the most significant overhauls to India’s insolvency framework since the Code’s inception and what they mean for the insolvency ecosystem.
The IBC (Amendment) Act, 2026 overhauls India’s insolvency framework across several fronts, including:
- NCLT must now mandatorily admit applications where a default has occurred, reversing the discretion established by the Vidarbha Industries judgment.
- Key resolution plan changes include clarifying that secured government dues rank below secured financial creditors, codifying the clean slate doctrine, and refining payouts to dissenting financial creditors.
- Three major new frameworks are introduced – a Creditor-Initiated Insolvency Resolution Process (debtor-in-possession model), a Group Insolvency Framework for interconnected companies, and a Cross-Border Insolvency Framework based on UNCITRAL principles.
- Liquidation reforms empower the CoC to supervise proceedings and protect inter-creditor contractual arrangements.
- Miscellaneous changes exclude personal guarantors from interim moratorium benefits and expanding the penalty powers of the adjudicating authority.
We hope this is useful for all our readers.
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Disclaimer: This update is general in nature and is not intended to be a substitute for specific legal advice. Please contact the author(s) for specific legal advice in this regard.
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