The Lok Sabha passed the Insolvency and Bankruptcy Code (Amendment) Bill, 2025 on Monday, incorporating reforms aimed at improving resolution timelines, enhancing transparency, and balancing the interests of debtors, creditors, and employees.
Finance Minister Nirmala Sitharaman informed Parliament that apart from the several amendments since 2016, “jurisprudence laid out by the tribunal and the courts has been taken on board so that we can maximise the value for stakeholders and improve the process itself.” While addressing the Lok Sabha on Monday, the Minister defended the IBC’s track record while acknowledging the concerns raised by the Opposition.
The Bill accepts all 11 recommendations of the Select Committee headed by Baijayant Panda and adds a 12th: Requiring creditors to record reasons for selecting winners, a move aimed at enhancing transparency in the resolution processes.
