The Ministry of Law and Justice issued the Insolvency and Bankruptcy Code (Amendment) Act, 2026, to further amend the Insolvency and Bankruptcy Code, 2016.
It shall come into effect on such date as the central government, by notification in the official gazette, appoints.
The following has been stated:
• In section 3 of Code: - (a) after clause (27), the following clause shall be inserted, namely: — ‘(27A) “registered valuer” shall have the same meaning as assigned to it under Chapter XVII of the Companies Act, 2013;’; (b) in clause (31), the following Explanation shall be inserted, namely: — “Explanation.—For the removal of doubts, it is hereby clarified that the security interest shall exist only if it creates a right, title or interest or a claim to a property pursuant to an agreement or arrangement, by the act of two or more parties, and shall not include a security interest created merely by operation of any law for the time being in force;”;
• In section 5:- (a) clause (2A) shall be re-numbered as clause (2B) thereof and before clause (2B) as so re-numbered, the following clause shall be inserted, namely:–– ‘(2A) “avoidance transaction” means a transaction as referred to in sections 43, 45, 49 and 50;’; (b) after clause (9), the following clause shall be inserted, namely:–– ‘(9A) “fraudulent or wrongful trading” means the fraudulent or wrongful trading as referred to in section 66;’;
• In section 7, in sub-section (4), the proviso shall be omitted;
Please refer to the document attached below for more details.
