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Lok Sabha Passes Bill to Amend Insolvency and Bankruptcy Code; FM Assures ‘Interests of Workmen Are Not Compromised’
The bill replaces the under-used fast-track insolvency process with a creditor-driven model and out-of-court settlements, resolving 1,376 companies with ₹4.11 lakh crore recoveries, Finance Minister said.
- On Monday, the Lok Sabha passed the Insolvency and Bankruptcy Code Bill, introducing a creditor-driven insolvency model to replace the underutilized fast-track resolution mechanism.
- Finance Minister Nirmala Sitharaman explained that the IBC, enacted in 2016, aims to rescue viable businesses rather than serve as a debt-recovery tool, with the new framework granting the committee of creditors authority to supervise liquidation processes.
- As of December 2025, the framework facilitated the resolution of 1,376 companies, enabling creditors to recover ₹4.11 lakh crore, while the "credible threat" of losing ownership pushed debtors to settle 32,179 cases before formal proceedings.
- Opposition MPs, including Saugata Roy of the Trinamool Congress, argued the law fails to address fugitive economic offenders and risks biased decision-making by allowing creditors with direct financial interests to oversee liquidation.
- Defending the reforms, BJP MP Anurag Thakur noted that non-performing assets for commercial banks have fallen to 2.3 per cent, crediting the government's legislative efforts with improving banking sector health.
14 Articles
14 Articles
Sitharaman defends IBC citing higher recoveries and post-resolution performance of firms
Replying to the debate on the Insolvency and Bankruptcy (Amendment) Bill 2026 in Lok Sabha, the Finance Minister said the reason for bringing in IBC was not debt recovery, but rather the rescue of viable businesses and addressing their financial stress
Lok Sabha passes Bill to amend Insolvency and Bankruptcy Code: Sitharaman says law helped improve banking sector’s health
Finance Minister Nirmala Sitharaman said the Insolvency and Bankruptcy Code was not meant to function merely as a debt recovery mechanism but as a framework to save viable businesses
Lok Sabha passes Bill to amend Insolvency and Bankruptcy Code; here's what it means
The Lok Sabha has approved the Insolvency and Bankruptcy Code (Amendment) Bill, 2025, a move lauded by Finance Minister Nirmala Sitharaman for revitalizing India's banking sector. The amendments aim to expedite case admissions and curb system misuse, building on the IBC's success in resolving ...
IBC Amendment Bill 2025, passed by Lok Sabha, introduces creditor-driven reforms
The Insolvency and Bankruptcy Code (Amendment) Bill, 2025 passed in the Lok Sabha on Monday. Featuring 12 amendments, the revised legislation introduces significant changes to India's insolvency resolution framework, including new creditor-driven mechanisms, stricter timelines, and provisions for cross-border and group insolvency.
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