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ARTICLE · 23 OCTOBER 2025

The Insolvency And Bankruptcy Code (Amendment) Bill, 2025: A Timely Overhaul

Luthra and Luthra Law Offices India
Luthra and Luthra Law Offices India
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On August 13, 2025, the Government of India introduced the Insolvency and Bankruptcy Code (Amendment) Bill, 2025 ("Bill") in the Lok Sabha. The Bill proposes significant reforms to the Insolvency....

IndiaInsolvency/Bankruptcy/Re-Structuring
Harish Kumar
Harish Kumar
Ishita Chawla
Ishita Chawla
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The Insolvency and Bankruptcy Code (Amendment) Bill, 2025: A Timely Overhaul

Introduction

On August 13, 2025, the Government of India introduced the Insolvency and Bankruptcy Code (Amendment) Bill, 2025 ("Bill") in the Lok Sabha. The Bill proposes significant reforms to the Insolvency and Bankruptcy Code, 2016 ("IBC"), India's principal law for resolving financial distress in a time-bound manner.

The IBC was enacted to provide a unified legal framework for addressing corporate and individual insolvency, with a focus on maximising asset value, improving credit discipline, promoting entrepreneurship and enabling smoother exits for failing businesses. It not only replaced a fragmented legal framework but also introduced a market-driven, creditor-controlled process, empowering stakeholders to resolve financial distress in a time-bound and effective manner.

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