New Insolvency Amendment Bill 2025: A Game-Changer for Business Failures
The government introduced a bill to amend the insolvency law, proposing out-of-court resolutions and frameworks for group and cross-border insolvency. The changes aim to reduce delays, improve governance, and maximize stakeholder value by easing judicial burdens and facilitating creditor-initiated processes.
- Country:
- India
On Tuesday, the government unveiled a bill aimed at revamping the insolvency law in the Lok Sabha, introducing out-of-court mechanisms to address business failures. The Finance and Corporate Affairs Minister, Nirmala Sitharaman, introduced the Insolvency and Bankruptcy Code (Amendment) Bill, 2025.
The bill proposes groundbreaking processes, including a creditor-initiated insolvency resolution and a group insolvency framework to streamline complex corporate structures. It prioritizes faster, cost-effective resolutions while reducing burdens on the judiciary.
With a focus on cross-border insolvency mechanisms, the bill enhances international cooperation, aligning with global standards and bolstering investor confidence. Following extensive stakeholder consultations, the bill was referred to a House committee for further evaluation.
(With inputs from agencies.)
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