CHAPTER IV FAST TRACK CORPORATE INSOLVENCY RESOLUTION PROCESSCentral

Section 56 of The Insolvency and Bankruptcy Code, 2016.

(1)Subject to the provisions of sub-section (3), the fast track corporate insolvency resolution process shall be completed within a period of ninety days from the insolvency commencement date.
(2)The resolution professional shall file an application to the Adjudicating Authority to extend the period of the fast track corporate insolvency resolution process beyond ninety days if instructed to do so by a resolution passed at a meeting of the committee of creditors and supported by a vote of seventy five per cent. of the voting share.
(3)On receipt of an application under sub-section (2), if the Adjudicating Authority is satisfied that the subject matter of the case is such that fast track corporate insolvency resolution process cannot be completed within a period of ninety days, it may, by order, extend the duration of such process beyond the said period of ninety days by such further period, as it thinks fit, but not exceeding forty-five days: Provided that any extension of the fast track corporate insolvency resolution process under this section shall not be granted more than once.

Summary

Section 56 of the Code, which prescribed the time-limit for completing the fast track corporate insolvency resolution process, has been omitted.

Practical examples

1In July 2026, a creditor named Suman was searching for the time-limits to finish a fast track corporate insolvency under Section 56. Suman's legal team informed him that because of the 2026 Amendment Act, Section 56 is omitted, and no fast track time-limits exist under this section anymore.

2A corporate resolution professional named Nitin was preparing a lecture on corporate law changes in 2026. He highlighted Section 56 as an example of a provision deleted on May 26, 2026, meaning that the fast track timeline of 90 days with a potential 45-day extension is no longer part of the Code.

FAQ

1. What was the subject matter of Section 56 of the Insolvency and Bankruptcy Code, 2016, before it was omitted?

Prior to its omission, Section 56 of the Insolvency and Bankruptcy Code, 2016, dealt with the time-limit for completion of the fast track corporate insolvency resolution process.

Test yourself

Q1.Under Section 56 of the Insolvency and Bankruptcy Code, 2016, which section's references were deleted from Section 33(1)(a) due to the 2026 Amendment Act?

Q2.Under Section 56 of the Insolvency and Bankruptcy Code, 2016, which Amending Act was responsible for the deletion of this section?

Q3.What happened to the fast track corporate insolvency resolution process under Section 56 of the Insolvency and Bankruptcy Code, 2016, as of May 26, 2026?

Q4.Which of the following is true regarding Section 56 of the Insolvency and Bankruptcy Code, 2016, as of July 2, 2026?

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