The Insolvency and Bankruptcy Code (Amendment) Bill, 2025, tabled in Parliament, seeks to overhaul the IBC framework with provisions for creditor-initiated insolvency, domestic group insolvency, cross-border proceedings, and faster resolution timelines.
To address long delays, currently averaging over 434 days versus the mandated 14, the Bill amends Section 7 to ensure financial creditor applications are admitted solely on proof of default, with information utility records deemed sufficient evidence.
This aims to reduce value erosion for debtors.
The Bill expands the definition of resolution plans, restricts the corporate applicant’s role in appointing resolution professionals, clarifies government dues priority, and limits…