IBC Amendment Act, 2026 Gets Presidential Assent: Introduces Creditor-Initiated Resolution Process [Read Notification]

India has made a big change in its insolvency law. The Insolvency and Bankruptcy Code (Amendment) Act, 2026 got approval from the President on 6 April 2026 and is now published in the Gazette of India. The law will start on dates decided by the Central Government, and different parts may start at different times.

The main change is a new process called the Creditor-Initiated Insolvency Resolution Process (CIIRP). A new Chapter IV-A is added in the IBC for this. In this process, some financial creditors can start insolvency cases against certain companies without waiting for the company to apply. This will apply to specific types of companies that the government will decide including those with smaller assets or income.

How will CIIRP work?

The law sets clear steps:

• The financial creditor must get approval from other notified financial creditors holding at least 51% of the debt value.
• The creditor must then inform the company and give it at least 30 days to respond.
• If the creditor still wants to proceed, it must again secure 51% approval.
• After that, a resolution professional is appointed.
• The process officially begins after a public announcement is made.

Timeline

The process should be completed in 150 days. It can be extended once by up to 45 days. If no plan is approved in time, the case can be changed into the normal Corporate Insolvency Resolution Process (CIRP). The company can also challenge the start of CIIRP within 30 days.

The Act also brings other changes. It allows rules for handling insolvency of group companies together. It also includes rules for cases involving other countries and allows the use of an online system for insolvency work.

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