The IBC Amendment Bill, 2025 introduces some of the most significant reforms to India’s insolvency framework since 2016. The key highlight is the launch of the Creditor-Initiated Insolvency Resolution Process (CIIRP)—a faster, creditor-driven mechanism that allows eligible financial creditors to start insolvency proceedings without needing immediate court approval. This aims to reduce delays in admission and improve the overall speed of resolution.
Under CIIRP, creditors holding at least 51% of financial debt can initiate the process after giving a 30-day notice to the debtor. A Resolution Professional (RP) is appointed upfront, and the entire process is designed to be completed within 150 days, ensuring minimal disruption to business operations while maintaining creditor oversight.
The Bill also introduces several major reforms such as Group Insolvency, Cross-Border Insolvency provisions, procedural clarity for RPs, penalties for frivolous filings, and steps toward a unified digital ecosystem for insolvency cases. These changes aim to make the insolvency system more transparent, efficient, and aligned with global best practices.
