← Concept Library · Economy

Economy GS 3 In the news 20 times

Insolvency and Bankruptcy Code, 2016

The IBC, enacted in 2016, provides a unified framework for resolving insolvency of corporate persons, partnership firms, and individuals in a time-bound manner. It replaced a fragmented regime of multiple laws (SICA, 1985; Recovery of Debts and Bankruptcy Act, 1993; SARFAESI Act, 2002) with a single code. The IBC follows a creditor-in-control model where the Committee of Creditors (CoC), dominated by financial creditors, drives the resolution process. The code mandates completion of CIRP within 330 days (including litigation time), failing which the corporate debtor may be liquidated.

Key details

Enacted: May 28, 2016; operational from December 1, 2016
Regulatory authority: Insolvency and Bankruptcy Board of India (IBBI)
Adjudicating authority: National Company Law Tribunal (NCLT) for companies; Debt Recovery Tribunal (DRT) for individuals
CIRP timeline: 180 days (extendable by 90 days); total including litigation: 330 days
Minimum default threshold: Rs 1 crore (raised from Rs 1 lakh during COVID-19, made permanent)
Three triggering parties: Financial Creditor (Section 7), Operational Creditor (Section 9), Corporate Debtor itself (Section 10)
Total CIRPs admitted as of December 2024: 8,175

In the news

● Tracked since February 16, 2026 · last seen August 18, 2026 · updates as the daily brief publishes

18 Aug '26

IBBI proposes curbs on malicious insolvency filings after another resolution professional’s arrest

28 May '26

Insolvency and Bankruptcy Code (IBC) completes 10 years

28 May '26

From dirty dozen to IBC 2.0: how debt resolution changed in India

26 May '26

Government operationalises amended insolvency law, sets 14-day admission deadline for NCLT

26 May '26

IBC 2.0 takes effect as MCA notifies major insolvency reforms

02 May '26

Staff crunch, infrastructure hit NCLT operations, must be addressed: Supreme Court

Polity & Governance

05 Apr '26

NeSL enabling real-time access to digital debt & claims data in insolvency cases

03 Apr '26

Fresh IBC amendments: How govt looks to plug gaps in insolvency code

02 Apr '26

Rajya Sabha clears Insolvency and Bankruptcy Code Amendments

01 Apr '26

Scrutiny of pre-bankruptcy deals of businesses expanded: Nirmala Sitharaman

01 Apr '26

Parliament passes IBC Amendment Bill, CoC now can call land authorities

01 Apr '26

Parliament passes amendments to IBC to quicken resolution process, reduce backlog

30 Mar '26

IBC helped banks recover 52% bad loans: Nirmala Sitharaman

30 Mar '26

IBC amendments boost transparency, strengthen insolvency framework: Sitharaman

30 Mar '26

IBC Amendments target delays, governance; experts see gains but urge balance on litigation risks

30 Mar '26

Parliament Budget Session LIVE: Underutilised fast-track process given new creditor-initiated insolvency framework, says FM Nirmala Sitharaman

Polity & Governance

29 Mar '26

IBC reforms: Government moves to fix insolvency delays

25 Mar '26

Finance Minister Nirmala Sitharaman moves Bill to amend IBC, speed up resolution

10 Mar '26

Cabinet clears amendments to insolvency, companies laws

16 Feb '26

In a shift, lenders begin to dominate initiation of bankruptcy cases

Related concepts

Polity & Governance

Creditor-Initiated Insolvency Resolution Process (CIIRP)

General Studies

Corporate Insolvency Resolution Process (CIRP)

Polity & Governance

Committee of Creditors (CoC)

Polity & Governance

National Company Law Tribunal (NCLT)

Polity & Governance

Companies Act, 2013

General Studies

Insolvency and Bankruptcy Board of India (IBBI)

See it in today’s brief. Daily current affairs with every static concept explained in place.

Read the daily brief