Tag: Insolvency and Bankruptcy Code

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Creditors Recovered ₹4 Lakh Cr; ₹14 Lakh Cr Settled Pre-Admission

NEW DELHI: Creditors have successfully recovered over Rs 4 lakh crore through resolution processes enabled by the insolvency law, which has been operational for a decade. Additionally, more than 30,000 cases, totaling nearly Rs 14 lakh crore, have been addressed at the pre-admission stage before the National Company Law Tribunal (NCLT). The Insolvency and Bankruptcy Code (IBC), which was implemented in 2016, emphasizes a time-bound and market-linked approach to resolving stressed assets. “As of March 2026, 1,419 cases have generated resolution plans, leading to the realization of over Rs 4 lakh crore for creditors. This amounts to 95% and 167%…

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IBBI Unveils Guidelines to Faster Appoint Insolvency Pros

NEW DELHI: The Insolvency and Bankruptcy Board of India (IBBI) has released new guidelines for the empanelment of insolvency professionals, facilitating faster appointments in corporate insolvency and bankruptcy cases. These guidelines detail the procedure for creating a panel of insolvency professionals (IPs) to serve as Interim Resolution Professionals (IRPs), liquidators, resolution professionals (RPs), and bankruptcy trustees (BTs). In a circular issued on Monday, it was stated that applicants for empanelment must not be under suspension or debarment, nor engaged in any pending disciplinary actions. They must also declare if they have faced any criminal convictions in the last three years.…

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NCLAT Delays Ruling on Vedanta’s Challenge to Adani Bid for JAL

NEW DELHI: The National Company Law Appellate Tribunal (NCLAT) has reserved its ruling on Vedanta’s two petitions regarding the acceptance of Adani Enterprises’ bid to acquire the financially distressed Jaiprakash Associates Ltd (JAL) via insolvency proceedings. The hearing concluded with a two-member NCLAT bench, led by Chairperson Ashok Bhushan and Member Technical Barun Mitra, after considering arguments from Vedanta and various respondents, including the Resolution Professional, the Committee of Creditors (CoC), and Adani Enterprises. The court has requested both parties to submit their written arguments within two days. Vedanta’s attorney questioned the evaluation criteria used by JAL lenders, who chose…

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India to Establish NCLT Bench for Faster Cross-Border Insolvency

NEW DELHI: India is set to establish a dedicated bench within the National Company Law Tribunal (NCLT) that will focus on cross-border insolvency cases, aiming to expedite legal proceedings following the notification of new bankruptcy regulations, according to sources familiar with the development. The cross-border framework, which received approval last month as part of amendments to the Insolvency and Bankruptcy Code (IBC), will draw from a UN model law but will be tailored to better fit India’s requirements. This initiative is designed to simplify access for creditors to the foreign assets of distressed companies and facilitate India’s collaboration with international…

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IBBI Panel Recommends Project-Based Insolvency for Real Estate

A panel formed by the insolvency regulator has recommended that bankruptcy proceedings focus solely on distressed projects of a real estate developer, rather than encompassing the entire company. This approach aims to allow solvent or unrelated ventures within the same developer to continue operating, benefiting many homebuyers involved in stable projects while hastening the resolution process for stressed ones. The panel stated that proceedings under the Insolvency and Bankruptcy Code (IBC) should typically be initiated on a project-by-project basis, treating each as an independent economic unit. This recommendation comes from the panel established by the Insolvency and Bankruptcy Board of…

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NCLAT: Insolvency Process for Raheja Shilas Project to Continue

NEW DELHI: The National Company Law Appellate Tribunal (NCLAT) has rejected Raheja Developers’ request to terminate the insolvency resolution process concerning its Raheja Shilas project in Gurugram, citing unresolved issues with flat buyers. The tribunal stated that an application under Section 12A of the Insolvency and Bankruptcy Code (IBC) for withdrawal from the Corporate Insolvency Resolution Process (CIRP) can only be filed once the disputes between flat buyers and the firm are fully settled. Flat buyers remain eligible to file an application under Section 12A. “Respondent Nos. 1 to 43 (flat buyers) have opposed the closure of the CIRP, which…

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Creditors’ Committee Can Engage Land Authorities in Realty Insolvency

File Photo NEW DELHI: On Wednesday, Finance Minister Nirmala Sitharaman announced that the committee of creditors (CoC) will now be able to invite land authorities to its meetings for discussions regarding regulatory and land-related issues under the insolvency regulations. This move aims to expedite the resolution of bankruptcy cases involving numerous real estate projects. While addressing the Rajya Sabha on the Insolvency and Bankruptcy Code (Amendment) Bill, 2025, Sitharaman stated that the amendments narrow the scope of adjudication for case admissions and set stricter timelines to accelerate resolution and enhance the value of stressed assets. The Rajya Sabha has passed…

Latest StoriesRegulatory

Parliament amends IBC to speed up resolution and cut backlog

NEW DELHI: On Wednesday, Parliament passed amendments to the Insolvency and Bankruptcy Code (IBC), aimed at expediting resolutions, decreasing case backlog, and enhancing the financial ecosystem. The Rajya Sabha approved the Insolvency and Bankruptcy Code (Amendment) Bill, 2026, through a voice vote, having received Lok Sabha approval on March 30. During a brief discussion in the Rajya Sabha, Finance Minister Nirmala Sitharaman remarked that the IBC has positively impacted the health of the Indian banking sector and facilitated asset recovery. Sitharaman, also the Minister of Corporate Affairs, stated that the government accepted all 11 recommendations proposed by a Lok Sabha…

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Lok Sabha Approves Insolvency Law Amendments to Boost Stakeholder Value

NEW DELHI: The Lok Sabha has passed a bill amending the insolvency law to introduce strict timelines, an out-of-court settlement option, and a framework for cross-border insolvency processes. Presenting the bill, Finance and Corporate Affairs Minister Nirmala Sitharaman stated that the amendments to the Insolvency and Bankruptcy Code (IBC), which took effect in 2016, aim to maximize stakeholder value and enhance the governing process. The amendments are intended to bolster the existing insolvency framework while tackling practical challenges and integrating global best practices, which, according to the minister, have significantly improved the health of the banking sector. The Lower House…

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Bombay HC Overturns DRT Stay on Bank-Auctioned Flat Sale

MUMBAI: The Bombay High Court recently overturned a Debt Recovery Tribunal (DRT) order that halted further post-sale actions regarding a bank’s auction of a flat in South Mumbai. The Court noted a “disturbing trend” where borrowers and “chronic defaulters” often act passively while banks pursue recovery. These defaulters typically invoke “collusive proceedings” under insolvency laws only when it’s time for auction purchasers to take physical possession of the property. In a ruling dated March 18, Justices Manish Pitale and Shreeram Shirsat expressed concern over the misuse of the Insolvency and Bankruptcy Code (IBC). They pointed out that borrowers often claim…