Insolvency

By Eknath Deshpande , 1 January 2026

India’s insolvency resolution framework is under growing pressure as the National Company Law Tribunal faces a sharp increase in bankruptcy filings. The surge reflects financial stress across multiple sectors and the wider use of the Insolvency and Bankruptcy Code by creditors seeking faster recovery. However, limited bench strength and procedural bottlenecks have slowed case resolution, undermining the time-bound intent of the law. Delays risk eroding asset value and investor confidence at a time when efficient capital reallocation is critical.

By Eknath Deshpande , 7 November 2025

The Insolvency and Bankruptcy Board of India (IBBI) has issued a critical clarification concerning the restitution of assets attached by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA), particularly in cases where such assets belong to companies undergoing insolvency resolution. The move aims to balance the objectives of insolvency law—reviving distressed businesses and ensuring creditor recovery—with the need to uphold due process under anti-money laundering statutes.