The Indian Institute of Corporate Affairs (IICA) under the Ministry of Corporate Affairs held a discussion session on how India’s insolvency law continues to change and adapt. The event featured M.S. Sahoo, who previously headed the Insolvency and Bankruptcy Board of India (IBBI), speaking to students about the evolution of the Insolvency and Bankruptcy Code (IBC) through various amendments made over time.
What was discussed
The session, organised under IICA’s “Meet the Legend” programme at its Manesar campus, examined how the IBC has developed as economic conditions have shifted. Sahoo explained that markets move faster than the courts can handle cases, which means that rules made by regulators and the government become critical tools for dealing with new situations that arise.
He pointed out that economic laws need to keep pace with real-world changes rather than remain fixed. Since the IBC contains provisions that allow regulators to frame rules to carry out the law’s purposes, this flexibility helps the insolvency system respond to practical problems more quickly than waiting for parliament to pass new legislation or for courts to issue judgments.
The session also covered how three different forces shape the current insolvency framework: amendments passed by parliament, rules made by regulators, decisions handed down by judges, and lessons learned from actual cases and market experience. Sahoo stressed that the IBC should not be seen as a static law but as a living system that adapts based on what works and what does not in the real economy.
What this means for you
If you work in corporate law, finance, banking or accounting, understanding that insolvency law is continuously evolving matters for your career. The rules governing how companies are rescued or wound down will keep changing, so staying updated on amendments and regulatory changes will be important. For students preparing for competitive exams or corporate careers, this highlights that Indian economic law is designed to be flexible and responsive, not rigid.