Amid uproar by the Opposition, Finance Minister Nirmala Sitharaman on Tuesday introduced an amended Insolvency and Bankruptcy Code in the Lok Sabha. Among some of the key amendments to the existing bankruptcy law that are incorporated in the Insolvency and Bankruptcy Code (Amendment) Bill, 2025, include a provision enabling a “creditor-initiated insolvency resolution process” with an out-of-court initiation mechanism for genuine business failures, in order to facilitate faster and more cost-effective insolvency resolution.
For starters, the bill aims to reduce delays, maximise value, and improve process governance for all stakeholders, introducing new provisions based on select global best practices for resolving insolvency. Several of…