Parliament Question: Insolvency and Bankruptcy Code (Amendment) Bill, 2026

GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS LOK SABHA STARRED QUESTION NO. 515 ANSWERED ON MONDAY, MARCH 30, 2026 / CHAITRA 09, 1948 (SAKA) INSOLVENCY AND BANKRUPTCY CODE (AMENDMENT) BILL, 2026 QUESTION *515. Dr. Sanjay Jaiswal: Shri Vishnu Dayal Ram: Will the Minister of CORPORATE AFFAIRS be pleased to state: (a) whether the Insolvency and Bankruptcy Code (IBC) (Amendment) Bill, 2026 has been successfully tabled in the current session starting 9th March, 2026, if so, the details thereof along with the specific provisions it contains to address the needs of small entrepreneurs particularly in Dahod Lok Sabha Constituency of Gujarat; (b) the manner in which the proposed Integrated Technology Platform is likely to ensure consistency, transparency and timely processing for all IBC stakeholders; (c) whether any specific provisions have been included in the 2026 Bill to implement cross- border and group insolvency frameworks, if so, the details thereof; and (d) the manner in which the strengthening of National Company Law Tribunal (NCLT) benches address the current average resolution timeline of 597 days? ANSWER THE MINISTER OF FINANCE (SHRIMATI NIRMALA SITHARAMAN) AND CORPORATE AFFAIRS (श्रीमती निममला सीतारामि) (नित्त एिं कारपोरेट कार्म मंत्री) (a) to (d): A Statement is laid on the Table of the House. *******STATEMENT REFERRED TO IN REPLY TO PART (a) TO (d) OF LOK SABHA STARRED QUESTION NO. *515 (15th POSITION) FOR 30TH MARCH, 2026 REGARDING “INSOLVENCY AND BANKRUPTCY CODE (AMENDMENT) BILL, 2026” (a): The Insolvency and Bankruptcy Code (Amendment) Bill, 2025 (the Bill), was introduced in the Lok Sabha on 12.08.2025 and referred to the Select Committee of Lok Sabha for further examination. The report of the Select Committee has been received on 17.12.2025. The Official Amendments to the Insolvency and Bankruptcy Code (Amendment) Bill, 2025, as reported by the Select Committee, has been moved in the Lok Sabha on 25th March, 2026. Under the proposed Amendment Bill the process of the Pre-packaged Insolvency Resolution Process (PPIRP) which was specially designed to help MSMEs, is being made easier by lowering the voting threshold for initiating insolvency proceedings and making the documentation processes easier. This would be applicable to small entrepreneurs across the country. (b): Integrated Platform for Insolvency Ecosystem (iPIE) envisages a case management platform to streamline coordination and information exchange among insolvency stakeholders under the IBC, 2016. It will integrate with e-Governance portals of the Ministry of Corporate Affairs (MCA), National Company Law Tribunal (NCLT)/ National Company Law Appellate Tribunal (NCLAT), Insolvency and Bankruptcy Board of India (IBBI), National E-Governance Services Limited (NeSL) and Insolvency Professionals to automate data exchange and reduce manual intervention in resolution and liquidation processes. The platform aims to promote consistency, transparency and timely processing for all IBC stakeholders through standardised digital workflows aligned with the provisions of the Code and regulations. It will provide a single digital interface for stakeholders for submission of information, case management and access to relevant records. Further, features such as digital document management, automated alerts, workflow tracking and monitoring dashboards will facilitate better oversight of case progress and adherence to statutory timelines under the Code. (c): Insolvency and Bankruptcy (Amendment) Bill, 2025 inserts an enabling provision for a cross-border insolvency framework. The Central Government may prescribe the manner and conditions for administering and conducting cross-border insolvencyproceedings under the Code, for such class or classes of debtors and corporate debtors, as may be notified by the Central Government. It also enables designating a bench for taking up cases pertaining to cross-border insolvency proceedings. The proposed Amendment Bill, through insertion of a new Chapter VA in Part II of the Code, empowers the Central Government to frame rules for conducting insolvency proceedings of group companies in a coordinated or consolidated manner. Key features of the rules include: (i) allowing a common bench for insolvency proceedings (ii) coordinated functioning of Committee of Creditors (CoCs) and professionals across group entities (iii) appointment and replacement of a common insolvency professional (iv) formation of a committee comprising of the CoC of the Corporate Debtors (CDs) that form part of a group (v) enabling binding inter-company coordination agreements approved by creditors and enforceable by the Adjudicating Authority (vi) treatment of costs incurred for taking measures to coordinate the insolvency proceeding This framework aims to reduce resolution costs, avoid duplication, and preserve group synergies for better value realisation. (d): National Company Law Tribunal (NCLT) acts as quasi-judicial body. There are several reasons for delay in resolution which, inter-alia depends on circumstances and complexity of each case, nature of evidence, large number of Interlocutory Applications (IA), stay by the appellate bodies in many cases, cooperation of stake holders and adjournments etc. The Government has been taking continuous steps to augment the capacity and strengthen the institutional framework of the NCLT through improved infrastructure, digital initiatives, and related administrative measures. These measures aim to ensure that the adjudicatory process remains efficient, well- supported, and responsive to the evolving needs of the IBC framework. *******