INSOLVENCY RESOLUTION UNDER THE IBC, 2016: CHALLENGES, OUTCOMES AND EMERGING TRENDS IN ODISHA

The Insolvency and Bankruptcy Code, 2016 (IBC) completed a decade of operation in 2026, a period marked by measurable gains in creditor discipline alongside persistent delay and deep haircuts. By June 30, 2026, 9,166 corporate insolvency resolution processes (CIRPs) had been admitted nationally; 4,227 corporate debtors were rescued through resolution plans, settlements or withdrawals, yet 3,074 were sent to liquidation, and average resolution time exceeded twice the statutory outer limit of 330 days. This paper evaluates insolvency resolution under the IBC with specific reference to Odisha, a mineral-rich State whose corporate distress is concentrated in steel, sponge iron, ferro-alloys and mineral logistics, and whose matters are heard by the National Company Law Tribunal (NCLT), Cuttack Bench, functional only since March 2019 and shared with Chhattisgarh. Adopting a mixed doctrinal–empirical method, the study combines analysis of the Code, the Insolvency and Bankruptcy Code (Amendment) Act, 2026 and leading jurisprudence with secondary data from the Insolvency and Bankruptcy Board of India and a purposive sample of eight Odisha-linked matters, including Odisha Slurry Pipeline Infrastructure, VISA Steel, Jagannath Sponge, OCL Iron and Steel and Bhushan Power and Steel. The analysis finds that Odisha-specific delay is largely extra-statutory, arising from writ interventions and statutory-dues litigation by State-linked electricity utilities, while value erosion is accentuated by the time-sensitivity of commodity-based assets. The 2026 Amendment — mandating admission within fourteen days, codifying the clean-slate doctrine, excluding statutory dues from 'security interest' and introducing a creditor-initiated process — resolves most doctrinal uncertainties but leaves institutional constraints of bench capacity, professional depth and sub-national data unaddressed. The paper recommends strengthening the Cuttack Bench, publishing bench-wise statistics, judicial restraint in writ jurisdiction, early notification of creditor-initiated and group-insolvency rules, and safeguards for mining-licence continuity during insolvency. Keywords: Insolvency and Bankruptcy Code; Corporate Insolvency Resolution Process; NCLT Cuttack Bench; Odisha; Committee of Creditors; Clean-Slate Doctrine; IBC (Amendment) Act, 2026; Creditor-Initiated Insolvency Resolution Process; Statutory Dues; Steel and Sponge Iron Sector.