Ms. Anita Shah Akella, Jt. Secretary, Ministry of Corporate Affairs, Govt. of India, who was the Keynote speaker at the AIPE IBC Conclave, eloquently highlighted the transformative intent behind the proposed amendments to the Insolvency and Bankruptcy Code (IBC) under the IBC Amendment Bill 2025.
She emphasized the careful, consultative process undertaken by the Ministry and IBBI, aimed at resolving procedural delays, clarifying judicial interpretations, and enhancing the efficacy of the insolvency framework.
The amendments focus on two core objectives: providing legislative clarity to judicial pronouncements that previously slowed down resolutions and maximizing enterprise value by reducing delays that unnecessarily push viable companies into liquidation. Notably, the reform streamlines admission processes by anchoring financial creditor petitions on clear, objective grounds, and removes the debtor’s ability to nominate their own resolution professional, ensuring fairness and efficiency.
Beyond procedural refinements, the reforms introduce flexibility in the 330-day resolution timeline to prevent loss of value from rigid deadlines and reposition government dues below financial creditors, upholding original legislative intent to prioritize credit market confidence. The discontinuation of the Fast Track mechanism and introduction of the creditor-initiated insolvency resolution process (CIIRP) highlights a shift towards more structured and timely interventions.
Structural reforms also pave the way for group insolvency coordination and the first steps toward cross-border insolvency provisions, while enhancing institutional capacity through role formalization and sector specialization of insolvency professionals.
Ms. Akella stressed that the IBC’s creditor-driven model continues to mature, moving towards a resolution-centric ecosystem that now achieves more resolutions than liquidations—marking a “golden era” for India’s insolvency landscape.
This pivotal policy milestone reflects the government’s commitment to a predictable, efficient, and commercially oriented insolvency regime that strengthens India’s position as a global model for emerging economies.
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