Worldwide: Insolvency/Bankruptcy

The interplay between social welfare statutes and insolvency legislation continues to generate significant judicial discourse in India.

The NCLAT examines whether accounting adjustments that extinguish a corporate debtor's receivables in favour of related parties constitute preferential transactions under the Insolvency and Bankruptcy Code. This ruling clarifies that actual fund transfer is not necessary for invoking avoidance provisions where such transactions result in the extinguishment of receivables, reinforcing the 'substance over form' doctrine in insolvency proceedings.

The Supreme Court's ruling in Shankar Khandelwal v. Omkara Asset Reconstruction examines whether claim admission by resolution professionals during corporate insolvency proceedings constitutes acknowledgement of liability under the Limitation Act. The decision clarifies the institutional role of insolvency professionals and establishes critical boundaries between procedural claim-verification processes and substantive acknowledgements capable of extending limitation periods.

The real estate sector in India has long been plagued by multiple structural problems, such as developers holding land through special purpose vehicles or subsidiaries while undertaking construction, marketing, and fund collection through a parent or associate entity.

In the recent case of Gloster Limited vs Gloster Cables Limited, the intersection between insolvency law and intellectual property rights was discussed by the Hon’ble Supreme Court of India wherein it decided the jurisdictional scope of National Company Law Tribunal (NCLT) under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 (IBC).

In a judgment of considerable significance for real estate insolvency law, the Supreme Court of India has, in Alpha Corp Development Private Limited v. Greater Noida Industrial Development Authority...

The Insolvency and Bankruptcy Code (Amendment) Act, 2026 introduces sweeping reforms to India's insolvency framework, including enhanced creditor protections, streamlined admission procedures, and a new civil penalty regime.

The National Company Law Tribunal, Ahmedabad Bench, in PM Copper Wire & Cables BHD v. Relicab Cable Manufacturing Ltd. (CP (IB) No. 63/AHM/2026, decided on 17th April 2026)...

The Insolvency and Bankruptcy Code (Amendment) Act, 2026 (“Amendment Act”) received Presidential assent on April 6, 2026, marking the most significant reform to India’s insolvency framework since the original enactment of Insolvency and Bankruptcy Code’s (“IBC”) in 2016 (and has yet to become law). Over the last decade, the IBC has transformed India’s insolvency landscape by improving creditor recoveries, shifting control from defaulting promoters to creditors and creating a modern regulatory framework where none existed before.