Towards a fair, efficient insolvency regime
India's 2026 Amendment to the Insolvency and Bankruptcy Code introduces the Creditor-Initiated Insolvency Resolution Process (CIIRP) to balance debtor and creditor interests. The amendment aims to reduce judicial delays but faces criticism for its restrictive eligibility criteria.
Why it matters
The reform is a significant attempt to streamline corporate insolvency in India's economy.
T he outline of India’s Insolvency and Bankruptcy Code (IBC) has long been demarcated by an innate stiffness between the inevitability to preserve distraught companies and the necessity to safeguard the interests of creditors. This contradiction is often cited as the ‘Chakravyuha Challenge’— a structural paradox by which the economy eases a company’s entry into the system but forms formidable formal fences when it wishes to exit.
The article provides a technical analysis of legal policy without favoring specific political interests.
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