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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM68483
Volume:
10 |
10 |
Oct 2026
Pages:
1-4
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
DEPARTMENT OF LAW
SRM INSTITUTE OF SCIENCE AND TECHNOLOGY
The Insolvency and Bankruptcy Code (Amendment) Act, 2026 gives statutory footing to asset-level and project-specific resolution of real-estate developers, a practice that earlier grew through judicial decisions. This study examines how the project-wise Corporate Insolvency Resolution Process (CIRP) can be made safer for homebuyers, creditors, resolution applicants and insolvency professionals. Using doctrinal analysis of the amended Code, leading Supreme Court and NCLAT decisions, the CIRP Regulations and the June 2026 Discussion Paper of the Insolvency and Bankruptcy Board of India (IBBI), the paper identifies eight categories of risk and maps each to a mitigation instrument. It finds that the Amendment Act addresses mainly structural risks, namely entity-wide admission, loss of statutory approvals and post-approval claims, while operational risks such as cash-flow leakage, information gaps, cost-to-complete misestimation and premature liquidation depend on subordinate regulation and on how tribunals and professionals apply the new framework. The paper proposes a three-layer mitigation framework (statutory, regulatory and practice) and flags residual issues for further study.
KEYWORDS
The Amendment Act moves real-estate insolvency from an entity-wide to a project-sensitive model and removes several structural risks: forced inclusion of viable projects, loss of approvals and post-approval claims. The remaining risks are mainly operational, concerning cash-flow control, information quality, cost-to-complete estimation and homebuyer participation, and are addressed by the IBBI’s proposed regulations and by practice. A layered approach combining the statute, the regulations and disciplined practice offers the most realistic route to mitigating risk in project-wise CIRP. Future work could test the framework on decided project-wise cases once tribunal decisions under the Amendment Act accumulate.
[1] The Insolvency and Bankruptcy Code (Amendment) Act, Act No. 6 of 2026, Acts of Parliament, India, 2026. [2] Ministry of Corporate Affairs, Notification S.O. 2625(E), Gazette of India, pt. II, sec. 3(ii), May 22, 2026. [3] Insolvency and Bankruptcy Board of India, “Strengthening resolution outcomes in real estate insolvency,” Discussion Paper, June 2026. [4] S. Bhattacharyya, C. Agarwal, and S. Saha, “A new era for real estate insolvency: IBC (Amendment Act) 2026 and the IBBI discussion paper,” Argus Partners, Aug. 2026. [Online]. Available: https://www.argus-p.com [5] Chitra Sharma v. Union of India, (2018) 18 SCC 575. [6] Pioneer Urban Land and Infrastructure Ltd. v. Union of India, (2019) 8 SCC 416. [7] Bikram Chatterji v. Union of India, (2019) 19 SCC 161. [8] Flat Buyers Association v. Umang Realtech, (2020) 12 Comp Cas-OL 174 (NCLAT). [9] Indiabulls Asset Reconstruction Co. Ltd. v. Ram Kishore Arora, 2023 SCC OnLine SC 612. [10] Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, Regs. 4D and 36A, as amended Feb. 15, 2024.
Publication Date
10/29/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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Conflict of Interest
The authors declare no conflict of interest related to this research work.
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