Assessing Bottlenecks: Challenges And Procedural Delays In IBC Implementation In India
- IJLLR Journal
- Nov 8, 2025
- 1 min read
Mr. Padam Sharma, Amity Law School, Noida
ABSTRACT
This paper critically examines numerous challenges and procedural delays in IBC implementation in India. It provides an overview of provisions related to Insolvency Resolution Process and Liquidation under the Code. It articulates various persisting challenges and delays to IBC implementation in India including but not limited to Overburdened Tribunals, Lack of Infrastructure, Delays in implementation of Resolution Plan, Hierarchy Challenges and Haircuts, Non- Cooperation by erstwhile management, Prolonged Litigation, Lack of Awareness amongst Authorities, Ineffective Pre-Packaged Insolvency Resolution Process, and Flawed Monitoring Committees. The paper provides an in-depth elucidation of these prevailing challenges and also includes various case laws highlighting these persistent challenges in the IBC jurisprudence. The paper further provides an analysis of the Insolvency and Bankruptcy (Amendment) Bill 2025 highlighting its solutions to some of the prevailing challenges in the code including proposed provisions on Group Insolvency, Cross Border Insolvency, The Creditor Initiated Insolvency Resolution Process (CIIRP), Clarification on Security Interest, and Amendments in Liquidation process. However, the Amendment contains several loopholes which needs to be addressed as it does not provide solutions to the basic and persistent challenges prevailing in the code. The paper concludes with various suggestions and reforms that are not addressed neither in the Amendment or in the code.
Keywords: Insolvency and Bankruptcy Code, Challenges, Procedural Delays, Loopholes, Overburdened Tribunals.
