Overview

• Finance Minister Nirmala Sitharaman introduced the Insolvency and Bankruptcy Code (Amendment) Bill, 2025 on August 12, and the Lok Sabha sent it to a select committee for review.
• The bill proposes a creditor-led, largely out-of-court route under which the Committee of Creditors can ask the adjudicating authority to approve a bid and transfer control to the resolution applicant.
• The draft also advances group insolvency procedures and a cross-border framework to handle multi-entity and international cases more efficiently.
• Ravi Mital said the amendments prescribe tighter timelines, including for plan approval, to reduce delays that erode value in stressed companies.
• He urged stronger coordination between creditors and resolution professionals and called on advisors, bankers and creditors to actively support the transition, while noting a new section to empower the NCLT will need to prove its effectiveness.