Archive · 26 Sep 2025
Govt. Proposes New Rules for Claim Valuation under IBC
Imagine a company goes bankrupt.
Right now, people who are owed money (creditors) have to make claims, and someone called a Resolution Professional (RP) decides how much those claims are worth.
The government is changing the rules.
Instead of RPs making up their own values, they will now use a set of rules.
This should stop arguments and speed things up.
The new rules will help decide how much claims are worth and will stop RPs from rejecting claims.
There are concerns that disputes may still occur.
The government proposes a rule-based system for RPs to determine claim values.
This replaces the current, "arbitrary" assessment methods.
The change aims to speed up resolution and reduce disputes.
RPs will have the power to determine claim values based on new regulations.
The amendments Bill was introduced in the Lok Sabha on August 12.
- Who
- The government, resolution professionals (RPs), and creditors of insolvent companies.
- What
- The government proposed a rule-based system to determine the value of claims submitted by creditors of insolvent companies.
- When
- The Insolvency and Bankruptcy Code (Amendment) Bill, 2025 was introduced in the Lok Sabha last month.
- Where
- Lok Sabha
- Why
- To speed up the resolution process and reduce disputes.
- Legislation
- Insolvency and Bankruptcy Code (Amendment) Bill, 2025
- Key Change
- Rule-based system for claim valuation by RPs
- Current Practice
- RPs using "arbitrary" claim assessment
- Goal
- Speed up resolution process of insolvent companies
- Introduced by
- Finance Minister Nirmala Sitharaman
- Introduced in
- Lok Sabha
- Date of introduction
- August 12