New Delhi, May 4 -- The 7th amendment to the Insolvency and Bankruptcy Code (IBC), passed in April 2026, seeks to address prolonged delays in insolvency proceedings that have led to erosion of asset value, Crisil Ratings said in a press release.

The amendment introduces mandatory timelines of 14-30 days for National Company Law Tribunal (NCLT) benches to admit cases, approve resolution plans, and pass liquidation orders. If implemented effectively, these measures could significantly reduce overall resolution timelines.

Out-of-Court Framework to Ease Backlog

To help NCLT manage a backlog of around 7,000 pending admission cases, a new Creditor-Initiated Insolvency Resolution Process (CIIRP) framework has been introduced. This allows fina...