IBC amendment Bill tabled in LS

Finance Minister Nirmala Sitharaman on Tuesday introduced the Insolvency and Bankruptcy Code (Amendment) Bill, 2025, in the Lok Sabha, aimed at reducing delays and improving governance of processes under the Insolvency and Bankruptcy Code. The Bill was referred to a Select Committee for wider examination.

It amends the Insolvency and Bankruptcy Code, 2016, to introduce new provisions that follow global practices for resolving insolvency. It proposes “creditor initiated insolvency resolution process” with an out-of-court initiation mechanism for genuine business failures to facilitate faster and cost-effective insolvency resolution. This will cut the burden on judiciary and promote ease of doing business.

The Bill also seeks to bring provisions for “group and cross-border insolvency”.