India: Insolvency/Bankruptcy

Lenders increasingly evaluate recovery across every available layer of credit support rather than treating corporate insolvency as a standalone proceeding.

The National Company Law Appellate Tribunal (NCLAT) has delivered a clear verdict on the interplay between insolvency law and anti-money laundering enforcement. In the case Value Wise Consultancy Private Limited v. Deputy Director, Directorate of Enforcement & Ors. (Company Appeal (AT) (Ins) Nos. 1226 & 1227 of 2022), the Tribunal ruled on a question that increasingly troubles insolvency practice: once a company slips into moratorium, can it also expect protection from a separate law built to chase down criminally acquired wealth?

Indian insolvency law has evolved significantly in addressing homebuyer distress, moving from initial exclusion to statutory recognition as financial creditors, then introducing safeguards against misuse, and finally implementing project-wise resolution mechanisms.

The IBBI, through notification dated 01.06.2026 has released the IBBI (Inspection and Investigation) (Amendment) Regulations, 2026 (“Inspection Amendment Regulations”) to amend the IBBI (Inspection and Investigation) Regulations, 2017 (“Inspection Principal Regulations”), in order to give effect to the changes brought about by the Amendment Act.

The IBBI, through notification dated 01.06.2026 has released the IBBI (Voluntary Liquidation Process) (Second Amendment) Regulations, 2026 (“Voluntary Liquidation Amendment Regulations”) to amend the IBBI (Voluntary Liquidation Process) Regulations, 2017 (“Voluntary Liquidation Principal Regulations”), in order to give effect to the changes brought about by the Amendment Act.

The IBBI, through notification dated 01.06.2026 has released the IBBI (Liquidation Process) (Fourth Amendment) Regulations, 2026 (“Liquidation Amendment Regulations”) to amend the IBBI (Liquidation Process) Regulations, 2016 (“Liquidation Principal Regulations”), in order to give effect to the changes brought about by the Amendment Act.

The Hon’ble Supreme Court of India, in Dineshchand Surana v UCO Bank, 2026 INSC 579 acting through a Bench comprising Justice J.B. Pardiwala and Justice K.V. Viswanathan, examined the interplay between the moratorium provisions under Part III of the Insolvency and Bankruptcy Code, 2016 and proceedings for dishonour of cheque under Section 138 of the Negotiable Instruments Act, 1881.

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).

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.