Overview

• The Insolvency and Bankruptcy Code (Amendment) Bill, 2025 was tabled in the Lok Sabha on August 12 and formally referred to a parliamentary select committee for review in the next session
• It creates a creditor-initiated insolvency resolution process allowing financial creditors to launch out-of-court proceedings with a 150-day resolution target and a 30-day objection window for debtors
• New chapters in the Bill propose a group insolvency framework for coordinated treatment of debtors within corporate groups, a cross-border mechanism for international cases, and broadened Committee of Creditors authority to oversee liquidation and replace liquidators
• Amendments to Section 7 require the NCLT to admit financial creditor applications once default and procedural compliance are proven, restricting grounds for rejection and targeting a 14-day admission deadline
• Separately, the Insolvency and Bankruptcy Board of India has opened a public consultation until August 27 on mandating recorded CoC deliberations, beneficial-ownership disclosures and a centralised electronic submission platform