New Delhi, 30 March (H.S.):

India's Lok Sabha on Monday approved by voice vote the Insolvency and Bankruptcy Code (Amendment) Bill 2025 aimed at resolving interpretation disputes among stakeholders in corporate insolvency proceedings.

Introduced to further amend the IBC 2016 the bill addresses procedural delays between companies and individuals after review by a select committee.

Replying to an extensive debate Finance Minister Nirmala Sitharaman stressed that the IBC was never meant solely as a debt recovery mechanism but as a framework to rescue viable businesses resolve financial distress and preserve enterprise value.

The bill incorporates 12 amendments 11 recommended by the select committee and one by the government Sitharaman told the house adding it has been pivotal in strengthening India's banking sector particularly in tackling stressed assets.

She revealed that by December 2025 the IBC facilitated resolutions for 1376 companies enabling creditors to recover 411000 crore rupees.

Sitharaman noted the amendment replaces an underutilized fast-track process for small businesses which was essentially a time-bound Corporate Insolvency Resolution Process (CIRP) that saw limited uptake.

In its place comes a fresh creditor-initiated insolvency regime featuring out-of-court settlements debtor-in-possession and creditor-in-control models to enhance efficiency.

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Hindusthan Samachar / Jun Sarkar