Archive · 19 Dec 2025
IBC Amendment Bill 2025 Aims to Reduce Resolution Time
The Insolvency and Bankruptcy Code (IBC) is getting a big update after nine years.
A committee led by Baijayant Panda has suggested changes to make the process faster and clearer.
They want to reduce the time it takes to resolve cases by at least half.
The committee also clarified that once a company goes into insolvency, all other claims should be eliminated, and the resolution professional should focus only on resolving the issue.
They also added guidelines for cross-border and group insolvency.
The bill is expected to be discussed in the next budget session of Parliament.
These changes aim to make the IBC process more efficient and fair for everyone involved.
The IBC (Amendment) Bill, 2025 proposes 68 amendments to the Insolvency and Bankruptcy Code.
The select committee, chaired by Baijayant Panda, made 11 observations and suggestions to improve the IBC framework.
The bill aims to reduce the resolution time by at least 50% by strictly defining timelines and removing subjectivity.
The 'Clean Slate' principle has been clarified to eliminate all other claims once a resolution plan is finalized.
The role of the resolution professional (RP) has been clarified to focus solely on resolution, with a mandatory change if resolution is not achieved.
- Who
- Baijayant Panda, chairperson of the select committee on the IBC (Amendment) Bill, 2025
- What
- Proposed amendments to the Insolvency and Bankruptcy Code (IBC) to reduce resolution time and improve the framework
- When
- The revised bill is likely to be taken up in the budget session of Parliament
- Where
- India
- Why
- To address the major pain point of the IBC, which is the time to conclude the resolution process, and to improve the overall efficiency and effectiveness of the IBC framework
- Bill Name
- IBC (Amendment) Bill, 2025
- Committee Chairperson
- Baijayant Panda
- Committee Observations
- 11 observations and suggestions
- Proposed Amendments
- 68 amendments in the draft Bill
- Expected Resolution Time Reduction
- At least 50% reduction
- Clean Slate Principle
- Clarified and applied from the original date
- Resolution Professional Focus
- Mandatory change if resolution not achieved
- NCLAT Timeline
- 3-month timeline for passing orders
