BS EDIT: Timely Resolution

By Business StandardPublished On Aug 14, 2025

Context

The IBC Amendment Bill, 2025, marks the seventh change to the Code, signalling the government’s continued push for a stronger insolvency framework

The Problem

Cases now take an average of 602 days to resolve, far exceeding intended timelines, eroding asset value and weakening economic productivity

A Step in the Right Direction

A new creditor-led, out-of-court process targets faster resolutions within 150 days, with limited extensions to reduce business disruption

Tackling Complex Cases

Provisions for group and cross-border insolvency aim to streamline proceedings, protect stakeholders, and reduce duplication in complex cases

Stronger Admission Norms

Once default is proven, cases must be admitted within 14 days, ensuring a swifter move towards resolution and limiting procedural delays

The Missing Piece

Reforms must be matched by adequate capacity at NCLT and NCLAT, without which even the strongest provisions cannot ensure timely outcomes