Parliamentary Committee Recommendations on Insolvency and Bankruptcy Code (IBC) Amendment Bill, 2025

A parliamentary select committee has put forth several recommendations concerning the Insolvency and Bankruptcy Code (IBC) Amendment Bill, 2025. These recommendations aim to streamline the insolvency process and address various challenges within the current framework.

Key Suggestions

• Strict Timeline for Appeals:
  • Implement a “clear statutory timeline” of three months for the National Company Law Appellate Tribunal (NCLAT) to dispose of an appeal.
  • Emphasize that delays in the appellate process can undermine the efficiency and certainty of the insolvency resolution process.
• Cross-Border Insolvency Framework:
  • Incorporate basic principles of the cross-border insolvency framework into the current law.
  • Consider India’s socio-economic, judicial, and institutional realities while designing the framework, aligning it with a model UN law.
• Group Insolvency Framework:
  • Develop a group insolvency framework considering domestic factors such as promoter-driven litigation and related-party influence.
  • Acknowledge the inherent complexity of cross-entity claims.
• Decriminalization of Certain Offences:
  • Propose decriminalization to expedite the rescue of stressed firms.

The corporate affairs ministry is expected to revise the bill based on these recommendations and seek Parliamentary approval.