IBC amendment bill
Lok Sabha passes IBC amendment bill after govt accepts select panel's views
This story was originally published at 13:55 IST on 30 March 2026
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NEW DELHI – Lok Sabha Monday passed the amendments to the Insolvency and Bankruptcy Code. The bill was introduced in August and was referred to a select committee. The government accepted the suggestions of the panel in the proposed Insolvency and Bankruptcy Bill tabled in Parliament last week, Minister of Finance and Corporate Affairs Nirmala Sitharaman said in her response to the discussion on the bill.
The amended bill empowers the government to prescribe rules relating to cross-border insolvency proceedings for such classes or classes of debtors and corporate debtors as may be notified by the Centre. The rules will allow one or more benches of the National Company Law Tribunal for dealing with cross-border insolvency proceedings under this section.
The government also introduced the concept of group insolvency that will provide a framework under which in case multiple entities of a single corporate group go insolvent, their resolutions can be consolidated in one court.
To expedite insolvency admission of debt-ridden companies, the bill amended Section 7 to clarify that the tribunal will mandatorily admit the application to initiate the corporate insolvency resolution process once the occurrence of default is established, no disciplinary proceedings are pending against the proposed resolution professional and other procedural requirements under the section are complied with. The Section 7 deals with an application filed by a financial creditor to start insolvency proceedings against a corporate debtor. End
Reported by Sagar Sen
Edited by Akul Nishant Akhoury
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