: Thursday, May 28, 2026 1:25 PM
New Delhi . The Insolvency and Bankruptcy Code (IBC), 2016 completed 10 years on Thursday. On this occasion, Finance Minister Nirmala Sitharaman has said that this has helped in strengthening the financial system of the country and speedy revival of distressed companies has been possible. “The Insolvency and Bankruptcy Code (IBC), 2016 has enabled a decisive shift from a fragmented, debtor-controlled process to an integrated, creditor-driven and time-bound resolution framework,” a post by Nirmala Sitharaman’s office on social media platform X said. Also said, “This has helped in strengthening the financial system of the country and has made possible the speedy revival of distressed companies.”
Along with this, a poster was also shared, in which detailed information about IBC was given.
The poster stated that the IBC has offered a structural solution. Under this, several bankruptcy laws have been integrated into a single and coordinated process.
Also said that the IBC insolvency resolution was changed from a debtor-controlled approach to a creditor-led approach. At the same time, it has imposed structured timelines to prevent delays in the resolution process and loss of value.
Additionally, the IBC has also put in place a robust framework to address financial stress and improve recovery outcomes.
Before the enactment of the Insolvency and Bankruptcy Code, 2016, insolvency resolution in India was governed by multiple legal frameworks. Companies facing financial distress were dealt with under various laws, such as Company Law, Sick Industrial Companies Act (SICA), debt recovery mechanisms and secured creditors framework including SARFAESI etc. These processes operated through separate institutions and forums, resulting in fragmented proceedings and overlap in jurisdictions.
As a result, resolution processes were often lengthy and uncertain. Cases remained pending for years, while the value of distressed assets continued to decline. Delays hampered the ability of lenders to recover dues and reduced the chances of revival of viable businesses. The lack of an integrated and time bound mechanism also affected overall credit discipline and investor confidence.
Keeping these structural challenges in mind, the Government had enacted the Insolvency and Bankruptcy Code, 2016 as a comprehensive reform.
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Web Title-IBC Completes 10 Years; Finance Minister Says It Helped Strengthen the Country Financial System