New Delhi, April 19 The Insolvency and Bankruptcy Code (IBC) has fundamentally changed how business failures are handled in India by enabling timely resolution and restoring asset value, Sanjay Singhania, Vice President of PHD Chamber of Commerce and Industry (PHDCCI) said on Sunday.
Speaking at “IBC Pulse: Trends, Transitions & Trajectories,” organised by PHDCCI at PHD House here, Singhania said that earlier, business failures were often delayed, leading to significant erosion of value.
“The IBC has shifted the focus towards faster resolution, improved credit discipline, and enhanced investor confidence,” he noted.
However, he also stressed the need for greater speed, flexibility, and a stronger emphasis on preserving value and reviving businesses.
The conference focused on the recently enacted Insolvency and Bankruptcy Code (IBC) Amendment Act, 2026, bringing together policymakers, legal experts, insolvency professionals, and industry leaders to deliberate on the evolving insolvency framework in India.
Justice Rakesh Kumar Jain, former Member (Judicial) of the National Company Law Appellate Tribunal (NCLAT), traced the evolution of insolvency laws in India -- highlighting the transition from fragmented mechanisms to a unified, creditor-driven, system under the IBC.
“The 2026 amendment aims to reduce delays and enhance creditor confidence, introducing provisions such as group insolvency and cross-border frameworks,” he said.
Ashok Kumar Bhardwaj, Member (Judicial) at the National Company Law Tribunal (NCLT), emphasised that insolvency law must continuously evolve to address emerging economic realities.
He reiterated that the core objective of the IBC should remain resolution and value maximisation, rather than mere recovery.
Adding to the discussion, Chetan Sharma highlighted the critical importance of time in insolvency proceedings, stating that delays silently erode asset value.
He suggested adopting AI-enabled pre-litigation mediation mechanisms to reduce pendency and improve efficiency in the system.
RJR Kasibhatla outlined key features of the 2026 amendments, including provisions for reasoned orders, cross-border insolvency, group insolvency and penalties for frivolous litigation.
He described the IBC as a modern legal framework aligned with the needs of a globalised economy.
Meanwhile, Debajyoti Ray Chaudhuri, Managing Director and CEO of National E-Governance Services Limited (NeSL), stressed the importance of Information Utilities in improving transparency and reducing delays by providing authenticated records of default, particularly benefiting MSMEs.
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