IBC Amendment Bill: Lok Sabha Signals Next-Phase Insolvency Reform

The passage of the Insolvency and Bankruptcy Code (Amendment) Bill, 2025 by the Lok Sabha marks a substantive recalibration of India’s insolvency architecture, with the legislative focus directed toward expediting resolution timelines, strengthening creditor-driven processes, and addressing systemic delays that have diluted value realisation under the existing regime, while incorporating recommendations of the Select Committee and introducing frameworks such as creditor-initiated resolution and enhanced rule-making powers for complex structures including group and cross-border insolvency, thereby signalling a policy shift toward efficiency, reduced judicial friction, and improved recovery outcomes within the country’s distressed asset ecosystem.