Finance Minister Introduces IBC Amendment Bill with Group and Cross-Border Insolvency Frameworks

Finance Minister Nirmala Sitharaman on Tuesday introduced the Insolvency and Bankruptcy Code (Amendment) Bill, 2025, proposing key reforms such as group insolvency, cross-border insolvency, and a creditor-oriented insolvency resolution process.

The Bill seeks to amend Section 7 to ensure insolvency applications are admitted solely on proof of default, aiming to cut admission delays from the current 434-day average to the mandated 14 days.

It clarifies the priority of government dues, expands “resolution plans” to include asset sales, and introduces provisions to restore resolution processes in exceptional cases.

The reforms aim to reduce delays, maximise value, and align with global best practices. The Bill has been referred to a select committee for further deliberations