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    Ibc

    The Insolvency and Bankruptcy Code (IBC), brought forth in 2016 was proposed as a one-stop solution for efficiently resolving claims regarding insolvent companies and to combat the bad loan problem that encumbers banks and other financial institutions. With around 255 sections and 11 schedules, IBC aims to circumvent the long and tedious process that usually entails insolvency and provide for a speedy, time-bound, and viable economic disposition and ensure the interests of small investors are protected. This happens by shifting the control of company affairs from the company board or promoters to a competent resolution professional. Per this law, the insolvency process needs to be completed within 180 days, with a one-time extension of 90 days possible with the permission of the creditors. The provisions of this act apply to any company, Limited Liability Partnership, Partnership firms, and Individuals, with the exception of financial service providers like banks, insurance companies, or more. The code is applicable only when the minimum default amount is Rs 1 lakh. For companies who record an annual turnover of Rs 1 crore, the entire exercise must be completed within 90 days, with a single-time deadline extension of 45 days. Under IBC, the adjudication authorities include the National Company Law Appellate Tribunal and the Debt Recovery Tribunal. More

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    • OPINION | The Liquidation Question: Is IBC resolving businesses or simply closing them faster?

      The pragmatic answer is that IBC is doing both. It is resolving businesses where there is genuine economic value left

    • OPINION | Balancing Recovery and Revival: The next phase of IBC 

      Amendments to IBC are expected soon. The real test of the proposed changes will be whether they simplify the process and reduce delays rather than add procedural layers 

    • SC spectrum ruling hits recoveries for banks, but the real damage is on lending to telcos

      The real damage from SC’s ruling on spectrum is not recoveries but the caution on lending to telcos now

    • Budget Snapshot | Why time is now the biggest creditor risk

      As Parliament readies a revamped insolvency law, the Budget must address the system’s slow bleed and unlock growth trapped in delay

    • IBC at the crossroads: The direction that 2026 must show

      After nearly a decade, India’s bankruptcy law faces a moment of reckoning on haircuts, delays and credibility

    • Sandesara Settlement: Has the SC just opened a Pandora’s box?

      The Sandesara ruling may have many ramifications in similar cases

    • Eight years on, the IBC is buckling under delays, haircuts, dodgy deals

      With creditor recoveries stuck at nearly one-third and banks chasing pre-IBC fraud almost equal to total recoveries, India’s insolvency regime is flashing red signals

    • OPINION | Transforming real estate insolvency and recovery through IBC reforms

      India’s real estate insolvency landscape under the IBC continues to evolve, balancing homebuyers’ rights, project-wise resolutions, and safeguards against speculative misuse, while reinforcing constitutional protections and regulatory coordination through recent judicial developments

    • IBC 2025: Ambitious reforms undermined by institutional weakness

      The IBC Amendment Bill 2025 proposes major reforms to expedite insolvency resolution and empower creditors, but its success hinges on strengthening the NCLT’s capacity and addressing persistent institutional shortcomings

    • IBC Rewired: Practical fixes for a complex economy

      Nearly a decade of insolvency law’s operation has shown that there are loopholes in its design which limit its potential benefit. The recently introduced amendment bill seeks to resolves key jurisprudential conflicts, streamline procedures, and empower creditors

    • IBC Amendment Bill brings in essential reform to speed up insolvency resolution

      The underlying principle of IBC is that quick resolutions are more likely to preserve value in firms going through an insolvency process. The track record, however, is of timelines being breached frequently. The amendment bill tries to find a solution to delays and simultaneously empower creditors

    • India’s Distressed Asset Market: Ready for growth

      The IBC and new RBI frameworks are transforming India’s distressed asset market, improving transparency, recovery rates, and investor confidence, while regulatory reforms and strategic partnerships create growing opportunities for global private equity participation

    • Data Story: IBC showed big success in FY25, but its failures are bigger

      As of March 2025, the average time for a bankruptcy case from commencement date to approval of resolution plan was a whopping 865 days.

    • What the latest IBC data tell us on recovery rates

      Recovery rate from IBC deals kept falling as delayed resolutions proved costly.

    • IBC’s section on protecting creditors from fraudulent applications is anomalous

      If Parliament actually intended to prevent one creditor from filing an application with an intent to defraud other creditors, then a new sub-section has to be added which clearly stipulates the consequences of such an application. Parliament has to step in to rectify the error which persists

    • Banks are left nearly bald after IBC haircuts; what's the cure?

      The recovery track record of banks in the insolvency process has been poor. Losses incurred in corporate lending imply big sacrifices made by shareholders.

    • Rethinking Section 29A of IBC to get the best out of a resolution process

      The challenge of business recovery lies in balancing regulatory protections with realistic opportunities for revival. It is important to recognise that not all distressed companies are beyond repair, and not all promoters are incapable of restoring their businesses to health. One potential solution is to implement a tiered system within IBC’s Section 29A that allows for exceptions based on the promoter's past performance/conduct in business and their proposed resolution plan

    • Will the government walk the talk on IBC reforms announcements?

      In the Budget, FM Nirmala Sitharaman announced a slew of measures to make the IBC process faster. That’s great news to de-clog the system, provided execution is proper

    • Moneycontrol Pro Panorama | Can IBC explain the private capex animal’s weak spirits? 

      In this edition of Moneycontrol Pro Panorama: India’s climate change adds to daunting challenges, the contradictions at the heart of OpenAI, Yediyurappa’s son needs to win over the seniors, faceless audit needs a humane touch, and more

    • Film stars can become missing MPs, but never NPAs

      Bank of Baroda’s notice to actor-cum-politician Sunny Deol to pay up his dues and the subsequent withdrawal of the notice give rise to many questions about the bank’s approach to the insolvency process 

    • Aircraft Lessors Vs Go Airlines: Implications of the NCLAT order

    • Long legal battle ahead for Go First's aircraft lessors to reclaim their planes

    • Go First’s bankruptcy brings back questions about Indian banks’ lending acumen 

    • IBC’s main fault was in setting expectations too high

    • RCAP insolvency process shows it’s time to tweak IBC

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