Govt plans to table Insolvency and Bankruptcy Code Amendment Bill in Budget session phase two; aims faster resolution timelines

The government plans to introduce the Insolvency and Bankruptcy Code (Amendment) Bill, 2025 in the second half of the Budget session beginning March 9, Finance Minister Nirmala Sitharaman said, adding that the parliamentary committee examining the proposed law has already submitted its report.The proposed changes are aimed at further improving timelines and effectiveness of insolvency proceedings while aligning India’s insolvency framework more closely with global best practices. Speaking during a media interaction a day after presenting the Budget 2026-27 in the Lok Sabha, Sitharaman said, “I expect, subject to conditions, to table the Insolvency and Bankruptcy Code (Amendment) Bill in the second half of Budget session starting March 9 incorporating suggestion of the committee.”The finance minister, who also holds the Corporate Affairs portfolio, said the proposed legislation is based on recommendations submitted by the parliamentary committee reviewing the amendments to the Insolvency and Bankruptcy Code (IBC).The amendment will be the seventh legislative change to the insolvency law since it was implemented in 2016. The IBC has already undergone six legislative interventions since its enactment, with the last amendment carried out in 2021.The insolvency framework significantly altered the debtor-creditor relationship in India and helped instil greater discipline among companies and promoters by strengthening the consequences of default on debt repayments.Earlier, on August 12, 2025, the government had introduced a Bill in the Lok Sabha proposing multiple changes to the IBC, including measures to reduce the time taken for admission of insolvency resolution applications.The Bill was subsequently referred to a select committee of the Lok Sabha, which submitted its report in December 2025.