New Delhi, April 9 -- The proposed amendments to the Insolvency and Bankruptcy Code signal a significant shift in Indias insolvency framework, allowing defaulting company promoters a chance to retain control and attempt revival under creditor supervision.
The move comes amid emerging stress in certain sectors due to global disruptions, including supply chain pressures linked to the West Asia conflict. The new mechanism is expected to provide distressed firms with a window to stabilise operations while safeguarding creditor interests.
The Parliament last week approved the Insolvency and Bankruptcy Code (Amendment) Bill, 2026.
Among the key new provisions, the Bill has provided for a creditor-initiated insolvency resolution process with...