When India got the Insolvency and Bankruptcy Code, 2016 (“IBC2016”), it was lauded as the panacea for much that ailed the economy. As it was put into practice, many issues arose, most prominent amongst them its inability to reduce the time taken to enforce the creditor’s rights granted under contract.
The Government has now proposed the Insolvency and Bankruptcy Code (Amendment) Bill, 2025 (“2025 Bill”) to strengthen India’s insolvency framework by making it more efficient and creditor-friendly.
The proposed amendments represent significant improvements. However, there are four areas where clarity and additional safeguards are required: timelines for admission of cases; the position of a debtor’s personal assets; the…