The Indian government has introduced the Insolvency and Bankruptcy Code (Amendment) Bill, 2025, in the Lok Sabha, proposing significant changes to the existing law. The Insolvency Bill is designed to reduce delays, maximize asset value for stakeholders, and enhance the overall effectiveness of the insolvency and bankruptcy framework.
Key proposed changes
Creditor-Initiated Insolvency Resolution Process: The Insolvency Bill introduces a new “creditor-initiated insolvency resolution process” with an out-of-court initiation mechanism. This is intended to facilitate a faster, more cost-effective resolution for genuine business failures with minimal business disruption. The government believes this will ease the burden on…