IBC Amendment Bill 2025: Key Reforms for Faster, Efficient Insolvency Resolution
Introduction On August 12, 2025 , Finance Minister Nirmala Sitharaman introduced the Insolvency and Bankruptcy Code (Amendment) Bill, 2025 in the Lok Sabha . The Bill aims to address chronic delays in insolvency proceedings, strengthen governance, and streamline both corporate insolvency resolution and liquidation processes under the IBC, 2016 . The legislation has been referred to a Select Committee for in-depth examination before its passage. Need for the Amendment Currently, the Corporate Insolvency Resolution Process (CIRP) , which should be completed within 330 days (including litigation), often takes over 434 days on average, leading to value erosion of distressed assets. The amendment seeks to close procedural gaps, reduce litigation delays, and introduce new mechanisms for faster resolution. Key Provisions of the IBC (Amendment) Bill, 2025 1. Creditor-Initiated Insolvency Resolution Process (CIIRP) Introduces a new framework allowing creditors to initiate ins...