Rajya Sabha passes IBC amendment bill with select committee's inputs
This story was originally published at 18:45 IST on 1 April 2026
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--Parliament passes IBC amendment bill
NEW DELHI – The Rajya Sabha Wednesday passed amendments to the Insolvency and Bankruptcy Code after the Lok Sabha had cleared them Monday. The bill was introduced in August and referred to a select committee. The government accepted the suggestions of the committee in the Insolvency and Bankruptcy Bill tabled in Parliament last week.
The amended bill empowers the government to prescribe rules for cross-border insolvency proceedings for such class or classes of debtors and corporate debtors as may be notified by the Centre. The rules allow one or more benches of the National Company Law Tribunal to deal with cross-border insolvency proceedings.
The government also introduced the concept of group insolvency, a framework that allows multiple entities of a single corporate group that have gone insolvent to be resolved in one court.
To expedite the insolvency admission of debt-ridden companies, the bill has amended Section 7 to clarify that the tribunal will mandatorily admit an application to initiate the corporate insolvency resolution process once the occurrence of default is established, if there are no disciplinary proceedings pending against the proposed resolution professional and other procedural requirements under the section are complied with. Section 7 deals with an application filed by a financial creditor to start insolvency proceedings against a corporate debtor. End
Reported by Priyasmita Dutta
Edited by Rajeev Pai
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