Is the IBC 2025 Amendment Two Sides of the Same Coin?
The Insolvency and Bankruptcy Code (Amendment) Bill, 2025 (“IBC Amendment Bill, 2025”) was introduced in the Lok Sabha as an attempt to respond to the institutional and procedural concerns that have emerged since the enactment of the Insolvency and Bankruptcy Code, 2016 (“IBC”). The IBC was originally enacted to consolidate India’s fragmented insolvency regime into a single, comprehensive framework, replacing multiple sectoral statutes such as the Sick Industrial Companies Act, 1985. Its stated objectives included ensuring time-bound resolution, enhancing certainty of recovery, preserving enterprise value, and improving credit discipline, with the broader aim of fostering investor confidence and economic efficiency. Within the original framework of the IBC, three distinct corporate resolution processes were envisaged: the Corporate Insolvency Resolution Process (“ CIRP ”), the Fast-Track CIRP, and the Pre-Packaged Insolvency Resolution Process (“ Pre-packs ”). The CIRP constituted the ...