Sitharaman Advocates for IBC, Highlights Increased Recoveries and Improved Performance of Resolved Firms

During the Lok Sabha debate on the Insolvency and Bankruptcy (Amendment) Bill 2026, Finance Minister Nirmala Sitharaman emphasized that the primary objective of the Insolvency and Bankruptcy Code (IBC) is not merely to facilitate debt recovery. Instead, she highlighted the focus on rescuing viable businesses facing financial challenges and ensuring that their operational capabilities can be preserved. The IBC, which was first enacted in 2016, aims to provide a structured framework for insolvency resolution, thereby balancing the interests of creditors while also aiming to safeguard employment and economic stability. The proposed amendments in the 2026 Bill are expected to further streamline the process, enhancing efficiency and responsiveness in the business recovery framework.