Insolvency and Bankruptcy Code: Impact and Analysis

This blog examines the Insolvency and Bankruptcy Code, 2016, which replaced overlapping stressed-asset schemes and recovery laws with a single time-bound law. It explains how the Code moved control to creditors, and how Section 29A, court rulings and COVID-19 measures shaped it. It reports outcomes, including the fall in gross NPAs from 11.8% in 2017 to 1.8% in March 2026. It also covers the Insolvency and Bankruptcy Code (Amendment) Act, 2026, and continuing problems such as delays beyond statutory timelines, unresolved cross-border insolvency and the lack of a group insolvency framework.