IBC Amendment Bill Likely in Budget Session

The Union government plans to introduce the Insolvency and Bankruptcy Code (Amendment) Bill, 2025 in the second half of the Budget session of Parliament beginning March 9. The move is aimed at strengthening India’s insolvency framework by improving efficiency, reducing delays, and aligning the regime more closely with global best practices.

Finance Minister’s Announcement

Union Finance Minister “Nirmala Sitharaman” said the government is ready to table the Bill as the parliamentary committee examining the proposed amendments has already submitted its report. She made the statement during a media interaction in New Delhi, a day after presenting Budget 2026–27 in the Lok Sabha. The Finance Minister also holds the charge of the Corporate Affairs Ministry.

Objectives of the Proposed Amendments

According to the government, the proposed changes to the insolvency law are intended to enhance the timelines and effectiveness of insolvency proceedings. The amendments are also expected to bring India’s insolvency regime closer to international standards. Faster admission of cases, improved resolution outcomes, and greater predictability for creditors and investors are among the key focus areas.

Legislative Background of the IBC

The Insolvency and Bankruptcy Code, enacted in 2016, has undergone six amendments so far, with the last legislative change made in 2021. The upcoming Bill will be the seventh amendment to the law. The Code fundamentally altered the debtor-creditor relationship in India and introduced strict consequences for default, creating a deterrent effect among companies and promoters.

Important Facts for Exams

• The Insolvency and Bankruptcy Code was enacted in 2016.
• The proposed Bill will be the seventh amendment to the IBC.
• The last amendment to the IBC was carried out in 2021.
• The IBC aims to ensure time-bound resolution of insolvency cases.

Parliamentary Process and Timeline

A Bill to amend the IBC was earlier introduced in the Lok Sabha on August 12, 2025, proposing several changes, including reduction in the time taken to admit insolvency resolution applications. The Bill was referred to a select committee of the Lok Sabha, which submitted its report in December 2025. Incorporating the committee’s suggestions, the government now expects to table the revised amendment Bill in the latter half of the Budget session starting March 9.