Insolvency And Bankruptcy Bill Set for Overhaul: Experts Invited

The Select Committee on the Insolvency and Bankruptcy Code (IBC) Amendment Bill, 2025, is calling for expert opinions and suggestions on the proposed legislative changes. Led by MP Baijayant Panda, the committee welcomed feedback from industry associations and stakeholders, offering a two-week period for submission in both English and Hindi.

Key amendments to the IBC, 2016, include the introduction of a Creditor-Initiated Insolvency Resolution Process (CIIRP) and measures to boost efficiency at various stages of insolvency and liquidation. A notable change involves amending Section 7 to expedite the admission process based solely on the verification of defaults.

Finance Minister Nirmala Sitharaman introduced the bill, supported by a committee of 24 MPs from diverse political backgrounds. The bill seeks to address the lengthy processing times that currently extend beyond 434 days on average, aiming to streamline the corporate insolvency resolution process.