Mint Explainer: Understanding the proposals under the new Insolvency and Bankruptcy Code amendment bill

The Indian government has taken a significant step towards improving the country’s insolvency framework with the introduction of the Insolvency and Bankruptcy Code (Amendment) Bill, 2025. The proposed amendments aim to reduce delays, maximize value for stakeholders, and improve governance of insolvency processes. According to Soumitra Majumdar, partner at JSA Advocates & Solicitors, the proposed amendments promise to cure current issues, including treatment of statutory charges, and provide newer solutions like pre-packaged insolvencies. The Bill proposes key changes, including creditor-initiated insolvency resolution, group insolvency, cross-border insolvency, and pre-packaged insolvency for companies. These changes are expected to streamline timelines, enhance ease of doing business, improve creditor recoveries, reduce tribunal caseloads, and attract global investors. Read Article