Finance Minister Nirmala Sitharaman on Tuesday (August 12) introduced the Insolvency and Bankruptcy Code (Amendment) Bill, 2025 in the Lok Sabha, aiming to make the corporate insolvency framework faster, more efficient, and aligned with global best practices.
The Bill has been referred to a select committee of Parliament for further examination, following a request from the minister.
The amendments seek to address delays in resolution, maximise value for stakeholders, and reduce the burden on the judiciary.
Key provisions include a creditor-initiated insolvency resolution process, an out-of-court initiation mechanism for genuine business failures, and a group insolvency framework to deal with complex corporate structures.
The proposed law…