Archive · 22 Dec 2025
IBC Amendments Called Transformative by Panel Chief
The Indian government is making big changes to the Insolvency and Bankruptcy Code (IBC) to help struggling companies.
Baijayant Panda, who leads the committee reviewing these changes, says the new rules will cut the time it takes to fix companies in half and help recover more money.
The changes also make it easier for small businesses to get help with their debts.
There is a debate about whether to allow insolvency for just one project in the real estate sector, but Panda believes this goes against the main idea of the IBC, which is to change the management of companies that can't pay their debts.
The new rules also make it mandatory to follow strict timelines and introduce new ways to handle insolvency for groups of companies and companies operating in different countries.
The IBC (Amendments) Bill 2025 aims to halve the time for rehabilitating struggling corporations and improve recoveries.
Baijayant Panda argues against project-specific insolvency in the real estate sector, stating it contradicts IBC principles.
The amendments lower the voting threshold for small businesses to enter a pre-packaged resolution framework to 51%.
The revised bill makes timeline compliance obligatory and streamlines the approval process for bidders.
New provisions for group and cross-border insolvency are introduced to address major gaps in the framework.
- Who
- Baijayant Panda, Lok Sabha select committee, Ministry of Corporate Affairs, IBBI, Supreme Court
- What
- Proposed amendments to the Insolvency and Bankruptcy Code (IBC)
- When
- Report tabled in December 2025, revised bill expected in budget session
- Where
- India
- Why
- To streamline insolvency processes, reduce timelines, and improve recoveries
Project-Specific Insolvency
Traditional IBC Approach
Real Estate Sector Insolvency
Project-Specific Insolvency
Supreme Court suggested project-specific insolvency for real estate to protect homebuyers.
Traditional IBC Approach
Baijayant Panda argues it contradicts IBC principles by allowing promoters to retain control.
Resolution Process
Project-Specific Insolvency
Anoop Rawat suggests case-by-case handling for flexibility.
Traditional IBC Approach
Panda insists on strict adherence to IBC principles, changing management for defaulting companies.
- Bill Status
- Report tabled in Lok Sabha, revised bill expected in budget session
- Project-Specific Insolvency
- Not part of current bill, under consideration by government
- Voting Threshold for Small Businesses
- Lowered to 51% from 66% for pre-packaged resolution
- Timeline Compliance
- Revised bill makes timeline adherence obligatory with 'shall' instead of 'may'
- CCI Approval
- Only required for winning bidders, not all bidders
- Group and Cross-Border Insolvency
- Introduced for the first time in amendments
- NCLT Benches
- Government proposes increasing the number of benches
Sources
Securities Market Code may trigger early disclosures, clog SAT
No Change In Existing Regulatory Framework For Short Selling: SEBI
IBC amendments ‘a game-changer’, says house panel chief Panda
India’s proposed securities market code holds promise but Sebi should be strengthened further
