IBC Amendment Bill 2025: Group and Cross-Border Insolvency
Why in the news
The Bill aims to quicken admission, resolution and liquidation under the IBC.
Key facts
- Group insolvency: joint handling of related companies, possibly with a common Bench, shared professional and joint creditors’ committee; Gensol and BluSmart were cited.
- Cross-border insolvency: rules for foreign creditors and overseas assets.
- Pre-packs for large corporates: faster and cheaper.
- Lenders can reach personal guarantors’ assets; government dues are secured only if contract-backed.
Procedural changes
| Change | Detail |
|---|---|
| Admission | Mandatory once a financial creditor proves default |
| CCI approval | After the plan reaches the adjudicating authority |
| Avoidance proceedings | Continue beyond CIRP |
| Moratorium | Extends into liquidation; interim one removed for personal guarantors |
| CIIRP | Creditor-initiated, within 150 days |
| Portal | Single electronic platform |
About the IBC
- Enacted 2016; Ministry of Corporate Affairs is nodal; IBBI is regulator.
Exam angle
- CIIRP: 150 days.
- IBBI regulates.