The government has introduced a major reform to India’s insolvency framework with the Insolvency and Bankruptcy Code (Amendment) Bill, 2025. Presented in the Lok Sabha by Finance Minister Nirmala Sitharaman, the Bill seeks to reduce long delays in insolvency cases, strengthen creditor control, and make the resolution process more efficient.
Cutting Down Delays in Insolvency Admissions – Section 7 Amendment
At present, corporate insolvency applications must be admitted within 14 days under the IBC. In reality, the process takes an average of 434 days, eroding asset value and reducing recoveries for creditors. The Bill proposes to amend Section 7 of the IBC so that the adjudicating authority will only check if a…