The Lok Sabha has passed the Insolvency and Bankruptcy Code (Amendment) Bill, 2025 with a voice vote today. The Bill, which was initially referred to a Select Committee, has been introduced to further amend the Insolvency and Bankruptcy Code 2016, to address procedural delays and interpretational issues among companies and individuals.
Replying to the discussion on the Insolvency and Bankruptcy Code (Amendment) Bill, 2025 in the Lok Sabha, Finance Minister Nirmala Sitharaman said the Insolvency and Bankruptcy Code was never intended to function merely as a debt recovery mechanism but as a framework to rescue viable businesses, resolve financial stress and preserve enterprise value.
The Finance Minister said the Insolvency and Bankruptcy Code (IBC) Amendment Bill has a total of 12 amendments, including 11 recommended by the Select Committee and one introduced by the government. Speaking about the Bill, she said 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 emphasised that the law was never intended to function merely as a debt recovery mechanism.
