IBC (Amendment) Bill, 2025: Proposing Sweeping Changes In India's Insolvency Framework

In a continued effort to improve and restructure the insolvency framework, the Government of India introduced the Insolvency and Bankruptcy Code (Amendment) Bill, 2025 ("IBC Bill") in Lok Sabha on 12th August 2025, to amend the Insolvency and Bankruptcy Code, 2016. Once passed, this landmark legislation aims to address the longstanding procedural challenges and critical loopholes.

The IBC Bill proposes several significant changes to streamline the overall insolvency process including enhancing creditor rights and harmonising judicial interpretations which often led to inconsistencies.

Key Reforms Proposed:

1. The Bill directly addresses the issue of judicial delays at the admission stage by making the process more mandatory and time bound. While the Code originally prescribed 14 days as the period for rejection/admission of a Corporate Insolvency Resolution Process ("CIRP") application, it was not strictly implemented. The amendment now mandates the National