The Insolvency and Bankruptcy Board of India (IBBI) on April 15, 2026, issued Discussion Paper on (Creditor-Initiated Insolvency Resolution Process) Regulations, 2026.
The Insolvency and Bankruptcy Code (Amendment) Act, 2026 introduces a new Chapter IV-A in Part II of the Code, establishing a statutory framework for the Creditor-Initiated Insolvency Resolution Process (CIIRP). This new mechanism is designed to enable quicker, cost-effective resolution of stressed companies with minimal disruption to business operations.
The framework (Sections 58A–58K) empowers the Insolvency and Bankruptcy Board of India (IBBI) to formulate detailed regulations for implementing CIIRP. Accordingly, draft CIIRP Regulations, 2026 have been proposed to lay down the procedural structure. The Central Government will separately notify key aspects such as eligible categories of corporate debtors, authorized financial institutions, and applicable thresholds and conditions for initiating the process.
CIIRP is built around four key objectives: enabling early creditor-led intervention after default, allowing the corporate debtor to retain management control under supervision, ensuring a time-bound resolution process, and providing for seamless transition to the standard Corporate Insolvency Resolution Process (CIRP) if required. The IBBI has invited public comments on the draft regulations, with the deadline set as April 28, 2026.
