Archive · 12 Aug 2025
India's Bankruptcy Law Overhaul: Shifting Debt Resolution
India is changing its bankruptcy rules.
A new law is being proposed to move debt resolution from courts to meetings between creditors and companies.
The law aims to speed up the process, including handling groups of companies that owe money and working with other countries on bankruptcies.
Companies that can't pay their debts might still run their businesses, but with a special advisor watching over them.
The changes should help speed things up and protect those who are owed money.
The IBC (Amendment) Bill 2025 was introduced in Lok Sabha, shifting corporate debt resolution towards creditor-led processes.
The Bill proposes faster tribunal timelines and a new framework for group and cross-border insolvencies.
The Bill aims to clarify rules on the priority of government dues.
Bankrupt companies may continue running day-to-day operations under the watch of a resolution professional.
Proposed amendments seek to reduce delays and maximize value for stakeholders in insolvency proceedings.
- Who
- Finance and Corporate Affairs Minister Nirmala Sitharaman
- What
- Insolvency and Bankruptcy Code (Amendment) Bill 2025
- When
- Tuesday
- Where
- Lok Sabha
- Why
- To reduce delays, maximize value, and improve governance in insolvency proceedings
- Bill Name
- IBC (Amendment) Bill 2025
- Introduced By
- Finance Minister Nirmala Sitharaman
- Key Focus
- Creditor-led resolution, group and cross-border insolvency frameworks
- Current Status
- Referred to a Select Committee
- Proposed Change
- Shift from courtrooms to boardrooms for debt resolution
- Aim
- Reduce delays and maximize value for stakeholders
Sources
IBC, EASE, UPI: MoS Finance highlights measures building resilient banking future
Reforms undertaken to strengthen credit discipline in public sector banks, says government
Microfinance Stress Manageable: Ministry
RBI guidelines ensure multilingual customer communication, quicker grievance redressal: Minister
Govt introduces IBC Amendment Bill in Lok Sabha to speed up insolvency process
Centre introduces Bill to amend Insolvency & Bankruptcy Code
Centre Introduces Bill To Amend Insolvency Law In Lok Sabha
Nirmala Sitharaman introduces Insolvency and Bankruptcy Code (Amendment) Bill, 2025 in Lok Sabha – What we know
SEBI plans template-based IPO filings, regulatory clean-up in FY26
Govt introduces insolvency law amendment bill in LS; FM says changes aim to reduce delays
