The Union Cabinet has given its nod to amendments to the Insolvency and Bankruptcy Code, potentially clearing the way for the Parliament to introduce the IBC Amendment Bill in the ongoing parliamentary session, sources have told NDTV Profit.
The proposed legislative updates are based heavily on the suggestions of a Select Parliamentary Committee chaired by Bharatiya Janata Party lawmaker Baijayant Panda.
The committee was tasked with reviewing the current bankruptcy framework. Upon completion, the committee has submitted its comprehensive report in Dec. 2025 with a central focus on speeding up the corporate resolution process.
In order to tackle the order days that are plaguing the current systems, the House panel has recommended the implementation of stricter timelines for the disposal of bankruptcy cases. In tandem with these tighter deadlines, the committee has now suggested granting enhanced powers to the Committee of Creditors (CoC), thus empowering lenders to drive faster and more decisive resolutions.
In addition, the proposed amendments also address gaps in the existing code by introducing two major structural frameworks. For one, the panel has proposed a dedicated mechanism for cross-border insolvency in order to better manage distressed companies with international assets and foreign creditors.
Secondly, it suggested a formal group insolvency framework, which would allow interconnected corporate conglomerates to undergo resolution as a single unit rather than through fragmented, individual proceedings.
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