The IBC 2025 Amendment Bill proposes faster and broader insistent operations

The draft law of insolvency and bankruptcy law (amendment), 2025, which was presented in Parliament, seeks to reform the IBC framework with the provisions of insolvency started by creditors, the insolvency of the local group, border procedures, and faster time schedules.

To address the long delay, which is currently average more than 434 days for compulsion 14, the draft law adjusts section 7 to ensure acceptance of the applications of financial creditors only to prove backwardness for payment, with the regulations of the utility to the tool consider sufficient information.

This aims to reduce the erosion of the value of the debtors.

The draft law expands the definition of decision plans, restricts the role of the applicant for companies in appointing decision professionals, clarifies the priority of government fees, and limits the withdrawal of insolvency requests after the main stages.

Provides the time schedules of approvals on the plan, legal recognition of the monitoring committees, the strongest provisions against avoiding, illegal transactions, and fraudulent transactions.

For liquidation, the creditors committee will get larger supervision authorities, including replacing the liquidators and recommending a direct solution to the indigenous asset companies. CIRP can be restored once while liquidating to save viable companies.

The new bankruptcy resolving the creditor (CIIRP) provides specific financial institutions to start insolvency outside the court, with supervision from a professional in the decision and a 150 -day accuracy.

The new chapter of collective insolvency enables the government to frame the rules of coordinated procedures between relevant companies, while the rulings across the border will enable a seat allocated to the issues related to foreigners.

Other measures include addressing misuse by personal guarantees, enabling the IBC electronic portal, procedures for criminalizing selected procedures, and enhancing organizational ability.