The Lok Sabha passed the Insolvency and Bankruptcy Code (Amendment) Bill, 2025 by a voice vote today. The Bill, which was initially referred to a Select Committee, aims to further amend the Insolvency and Bankruptcy Code 2016 to address procedural delays and interpretational issues faced by companies and individuals.
Responding to the discussion on the Insolvency and Bankruptcy Code (Amendment) Bill, 2025 in the Lok Sabha, Finance Minister Nirmala Sitharaman stated that the Insolvency and Bankruptcy Code was never intended to function solely as a debt recovery mechanism, but rather as a framework for rescuing viable businesses, resolving financial distress, and preserving enterprise value.
The Finance Minister said that the Insolvency and Bankruptcy Code (IBC) Amendment Bill includes a total of 12 amendments, including 11 recommended by the Select Committee and one introduced by the government. Speaking about the Bill, she emphasized that the Insolvency and Bankruptcy Code has been a key factor in improving the health of the country's banking sector, particularly in resolving stressed assets. She stressed that the law was never intended to function solely as a debt recovery mechanism.