The IBC Amendment Act 2026 introduces a 'one-time restoration' provision. In what specific circumstance is this provision applicable, and what is its primary purpose?

The one-time restoration provision in the IBC Amendment Act 2026 allows the insolvency resolution process to be revived one time, within specified timelines, before liquidation of the corporate debtor is formally completed. The purpose is to prevent premature liquidation of businesses that may have viable resolution prospects — even when an initial CIRP did not yield an approved plan. If new resolution applicants emerge or commercial circumstances change shortly before asset liquidation, the one-time restoration gives the stressed enterprise a final opportunity to be resolved rather than broken up. This addresses a known gap in the framework where companies were being liquidated even when late-stage resolution was possible, destroying employment, economic value, and stakeholder recoveries that could have been better served by a going-concern resolution.