Insolvency and Bankruptcy Code, 2016 (IBC): Sections, Processes and 2026 Update

The Insolvency and Bankruptcy Code, 2016 (Act No. 31 of 2016) provides the principal statutory framework for insolvency resolution, liquidation and bankruptcy in India. It establishes time-bound processes for corporate persons and specified individual insolvency matters and is administered within the regulatory framework of the Insolvency and Bankruptcy Board of India (IBBI).

Updated legal position: The Code has been amended several times since 2016. The Insolvency and Bankruptcy Code (Amendment) Act, 2026 received Presidential assent on 6 April 2026, and the Central Government subsequently issued a commencement notification on 25 May 2026. IBBI also issued consequential amendments to multiple regulations during May and June 2026. For any filing, limitation issue, eligibility question or live proceeding, consult the current official Act, notifications and applicable regulations.
EnactmentAct No. 31 of 2016; assent on 28 May 2016
RegulatorInsolvency and Bankruptcy Board of India (IBBI)
Corporate adjudicationNCLT, with appeals to NCLAT under the Code
OverviewSection indexOfficial resources

Purpose and scope of the IBC

The Code consolidates and amends the law relating to reorganisation and insolvency resolution of corporate persons, partnership firms and individuals, with the objectives of time-bound resolution, maximisation of asset value, promotion of entrepreneurship and credit availability, and balancing stakeholder interests. The Code extends to the whole of India.

For corporate persons, the framework includes the corporate insolvency resolution process (CIRP), liquidation, voluntary liquidation and the pre-packaged insolvency resolution process for eligible corporate debtors. The Code also contains provisions for insolvency and bankruptcy of individuals and partnership firms; the operative framework presently includes notified provisions concerning personal guarantors to corporate debtors.

The 2026 amendment introduced wide-ranging changes across definitions, admission and claims, creditor participation, liquidation, pre-packaged resolution, personal-guarantor processes, information utilities, regulatory oversight and other procedural areas. Because commencement may be provision-specific, the official amendment Act and commencement notification should be read together.

IBC section index

The internal links below are retained from this website's existing IBC index for continuity. Section headings and linked pages should be read subject to subsequent amendments, substitutions, insertions, notifications and judicial interpretation. Where the Code has inserted lettered sections or new chapters after the original enactment, consult the current official text for the complete position.

PART II SECTION I

PART I PRELIMINARY

CHAPTER II CORPORATE INSOLVENCY RESOLUTION PROCESS

CHAPTER III LIQUIDATION PROCESS

CHAPTER IV FAST TRACK CORPORATE INSOLVENCY RESOLUTION PROCESS

CHAPTER V VOLUNTARY LIQUIDATION OF CORPORATE PERSONS

CHAPTER VI ADJUDICATING AUTHORITY FOR CORPORATE PERSONS

CHAPTER VII OFFENCES AND PENALTIES

PART III INSOLVENCY RESOLUTION AND BANKRUPTCY FOR INDIVIDUALS AND PARTNERSHIP FIRMS

CHAPTER I PRELIMINARY

CHAPTER II FRESH START PROCESS

CHAPTER IV BANKRUPTCY ORDER FOR INDIVIDUALS AND PARTNERSHIP FIRMS

CHAPTER V ADMINISTRATION AND DISTRIBUTION OF THE ESTATE OF THE BANKRUPT

CHAPTER VI ADJUDICATING AUTHORITY FOR INDIVIDUALS AND PARTNERSHIP FIRMS

PART IV REGULATION OF INSOLVENCY PROFESSIONALS, AGENCIES AND INFORMATION UTILITIES

CHAPTER I THE INSOLVENCY AND BANKRUPTCY BOARD OF INDIA

CHAPTER II POWERS AND FUNCTIONS OF THE BOARD

CHAPTER III INSOLVENCY PROFESSIONAL AGENCIES

CHAPTER IV INSOLVENCY PROFESSIONALS

CHAPTER V INFORMATION UTILITIES

CHAPTER VI INSPECTION AND INVESTIGATION

CHAPTER VII FINANCE, ACCOUNTS AND AUDIT

PART V MISCELLENEOUS