Context: The Lok Sabha has passed the Insolvency and Bankruptcy Code (IBC) (Amendment) Bill, 2025 to strengthen insolvency resolution and preserve going concern value of viable firms.
About IBC (Amendment) Bill, 2025:
- Moves from debt recovery to resolution & revival, focusing on business continuity (going concern).
- Introduces Creditor-Initiated Insolvency Resolution Process (CIIRP) enabling out-of-court initiation, reducing burden on NCLT.
- CoC Empowerment: Expands powers of Committee of Creditors (CoC) to appoint/remove liquidator and supervise liquidation.
- Procedural Reforms: Simplifies claims admission and standardises valuation, reducing delays in CIRP.
About IBC, 2016:
- Introduced a time-bound insolvency framework with creditor-in-control model.
- Established Corporate Insolvency Resolution Process (CIRP), with 180 days (extendable to 330 days) resolution timeline.
- Institutional framework includes IBBI, IPs, IUs, and CoC; adjudication by NCLT/DRT.
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