Union Cabinet Approves Key Changes to Insolvency and Bankruptcy Code
Synopsis
The Union Cabinet has approved significant amendments to the Insolvency and Bankruptcy Code, potentially setting the stage for the introduction of the IBC Amendment Bill during the current parliamentary session. These changes aim to streamline the corporate resolution process and empower creditors.
Key Takeaways
Union Cabinet approves amendments to IBC.
Stricter timelines for resolving bankruptcy cases proposed.
Enhanced powers for Committee of Creditors.
Introduction of cross-border insolvency mechanisms.
Group insolvency framework proposed for interconnected firms.
New Delhi, March 10 (NationPress) The Union Cabinet has officially sanctioned amendments to the Insolvency and Bankruptcy Code, paving the way for the introduction of the IBC Amendment Bill in the current parliamentary session, as reported by sources.
The suggested changes are grounded in the recommendations of a Select Parliamentary Committee led by Bharatiya Janata Party MP Baijayant Panda.
This committee was assigned the responsibility of evaluating the present bankruptcy structure. After thorough assessment, it submitted a detailed report in December 2025, primarily aimed at accelerating the corporate resolution process.
To address the persistent delays in the existing framework, the committee has proposed the establishment of stricter timelines for resolving bankruptcy cases. Furthermore, they suggest enhancing the authority of the Committee of Creditors (CoC), thereby enabling lenders to facilitate quicker and more definitive resolutions.
Additionally, the amendments aim to fill existing gaps in the code by introducing two significant structural frameworks. Firstly, the committee has recommended a specialized mechanism for cross-border insolvency to more effectively manage distressed firms with international assets and foreign creditors.
Secondly, it has proposed a formal framework for group insolvency, allowing interconnected corporate groups to undergo resolution as a unified entity rather than through separate, disjointed proceedings.
The proposed changes fall under the jurisdiction of the Ministry of Corporate Affairs, which is responsible for enforcing these laws.
In August of the previous year, the ministry introduced a Bill in the Lok Sabha that sought to implement various modifications to the IBC, including initiatives aimed at reducing the time required for processing insolvency resolution applications. This Bill was later forwarded to the Select Committee chaired by Panda, which delivered its findings in December 2025.
Finance and Corporate Affairs Minister Nirmala Sitharaman indicated last month that the government intends to formally present the IBC (Amendment) Bill, 2025, during the latter part of the Budget session, which commenced on Monday.
Point of View
It is crucial to highlight that the recent approval of amendments to the Insolvency and Bankruptcy Code reflects the government's commitment to enhancing corporate governance and expediting the resolution process, which is vital for economic stability and growth.
NationPress
30 Jun 2026
Frequently Asked Questions
What are the key amendments to the Insolvency and Bankruptcy Code?
The key amendments include stricter timelines for bankruptcy case resolutions, enhanced powers for the Committee of Creditors, a dedicated mechanism for cross-border insolvency, and a framework for group insolvency.
Who chaired the Select Parliamentary Committee that reviewed the IBC?
The committee was chaired by BJP MP Baijayant Panda.
When was the comprehensive report on the IBC submitted?
The detailed report was submitted in December 2025.
What is the role of the Ministry of Corporate Affairs in this context?
The Ministry of Corporate Affairs oversees the implementation of the Insolvency and Bankruptcy Code and the proposed amendments.
When is the IBC (Amendment) Bill expected to be introduced?
The government plans to introduce the IBC (Amendment) Bill, 2025, in the second half of the ongoing Budget session.
