New Delhi, April 19: The Insolvency and Bankruptcy Code (IBC) has played a significant role in expediting the resolution process for bankrupt companies in India, leading to improved asset value recovery. This insight was shared by Sanjay Singhania, Vice President of the PHD Chamber of Commerce and Industry (PHDCCI), during a recent event.
Singhania noted that the IBC has brought fundamental changes to the resolution process for failed companies in India. Previously, the resolution of bankrupt firms took considerable time, resulting in a significant decline in their asset values.
He stated, “The IBC focuses on swift resolutions, better debt discipline, and restoring investor confidence.” However, he emphasized the need for even faster resolutions, flexibility, and enhanced value preservation to aid in business recovery.
The event also highlighted the recently passed Insolvency and Bankruptcy Code (Amendment) Act, 2026, which brought together policymakers, legal experts, insolvency professionals, and industry leaders to discuss the evolving insolvency framework in India.
Justice Rakesh Kumar Jain, a former member (judicial) of the National Company Law Appellate Tribunal (NCLAT), presented an overview of the development of bankruptcy laws in India. He discussed the transition from fragmented mechanisms under the IBC to a unified, creditor-driven system.
He remarked, “The aim of the 2026 amendment is to reduce the time taken in insolvency processes and enhance creditor confidence.”
Ashok Kumar Bhardwaj, a member (judicial) of the National Company Law Tribunal (NCLT), stressed the necessity for continuous development of bankruptcy laws, keeping in mind emerging economic realities. He reiterated that the core objective of the IBC should not only be recovery but also resolution and value maximization.
Additionally, Debjyoti Ray Chaudhuri, Managing Director and CEO of National E-Governance Services Limited (NeSL), emphasized the importance of information utilities in enhancing transparency and reducing delays by providing authentic records of defaults, particularly benefiting small and medium enterprises (SMEs).
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