The Indian Institute of Corporate Affairs (IICA), with the Association of Insolvency Professional Entities, held a national conference on 13 June 2026 to mark ten years of the Insolvency and Bankruptcy Code, 2016 and to review reform priorities.
Structural pillars of the IBC
- IBBI: Regulator for insolvency professionals, professional agencies, insolvency professional entities and information utilities; prescribes rules for corporate and individual insolvency.
- Adjudicating authorities: NCLT for corporates, LLPs and personal guarantors; NCLAT for appeals; DRT for individuals and partnership firms.
- Institutional participants: Insolvency Professionals manage debtor assets and operations; Information Utilities (NeSL principal IU) store authenticated financial records; Committee of Creditors (financial creditors) decides on resolution plans.
Decade outcomes (key data)
- Realisation: ≈ Rs 4.32 lakh crore recovered by March 2026; recovery ~167% of baseline liquidation value.
- Case closure mix (to mid‑2025): Liquidation 43%; Withdrawals under Sec 12A 18%; Formal resolution plans approved 19%; Settled/reviewed/appealed 20%.
- NPA impact: Gross NPA ratio of scheduled commercial banks fell from 14.58% (2016) to 2.3% (2025).
Key 2026 amendments
- CIIRP: Creditor‑initiated out‑of‑court process for notified financial institutions; requires ≥51% financial creditors’ consent; 150‑day completion target with debtor management retained during negotiation.
- Cross‑border & group insolvency: Legal framework for judicial cooperation, access to overseas assets and group restructuring.
- CoC powers & timelines: CoC can appoint/replace liquidators; NCLT to admit/reject within 14 days and decide on resolution plans within 30 days; liquidation mandated within 180 days with max 90‑day extension.
- Government dues: Statutory taxes do not obtain secured creditor status; secured financial lenders’ priority preserved.
Capacity building
- PGIP: Two‑year Post Graduate Insolvency Programme by IICA; successful graduates gain immediate eligibility for insolvency professional registration.
IASPOINT Booster Facts
- Section 53: Specifies waterfall of distribution in liquidation.
- Pre‑pack (2021): PPIRP introduced as a fast, court‑assisted route for MSME resolution.
- Clean‑slate principle: Judicial doctrine conferring immunity on approved resolution applicants from predecessor liabilities.