Last reviewed: 15 October 2026. General information only; confirm commencement against the Gazette notification before acting.
Timeline
- 6 Apr 2026: Presidential assent to the Insolvency and Bankruptcy Code (Amendment) Act, 2026 (Act No. 6 of 2026).
- 22 May 2026: The Ministry of Corporate Affairs notified (S.O. 2625(E)) that most provisions would come into force on 26 May 2026.
Reported changes now in force
- The adjudicating authority must admit or reject a financial creditor’s application within 14 days, or record reasons for delay.
- Tighter timelines for withdrawal and liquidation orders, and a substituted Section 12A on withdrawal of admitted applications.
- Stronger avoidance-transaction provisions, with creditors able to initiate proceedings where the insolvency professional does not act.
- Wider committee-of-creditors role in liquidation, and the ability to revive a stalled process before a liquidation order.
Status to verify
The creditor-initiated insolvency resolution process (new Chapter IV-A, Sections 58A to 58K) is described differently by different sources. One trade report says it was operationalised from 26 May; other commentary says the provision inserting Chapter IV-A (Section 40 of the Amendment Act), group insolvency and the cross-border rule-making power were not covered by the 22 May notification. Please check the Gazette before relying on either position.
Sources
- IBClaw: 26 May 2026 commencement notification
- Bylaw: what is in force
- LiveLaw Biz: provisions notified
- Legal 500: analysis of the Act
- The Act (e-Gazette)
Disclaimer: As per Bar Council of India rules, advocates may not solicit work or advertise. This post is general information, not legal advice or solicitation.
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