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Union Cabinet Approves Amendment to IBC for Faster Resolution of Cases.

Economy | Dated: 11 Nov 2025

The Union Cabinet approved crucial amendments to the Insolvency and Bankruptcy Code (IBC) 2016, with the primary goal of significantly accelerating the resolution process and maximizing value for stakeholders. The proposed amendments introduce key mechanisms like the Creditor-Initiated Insolvency Resolution Process (CIIRP) and clarity on Group Insolvency, aiming to address critical bottlenecks and expedite proceedings in the National Company Law Tribunal (NCLT).

🎯 Key Highlights:

  • The Union Cabinet approved amendments to the Insolvency and Bankruptcy Code (IBC) 2016.
  • The central purpose of the amendment is to significantly accelerate the resolution process for corporate insolvency cases.
  • The amendments introduce key mechanisms like the Creditor-Initiated Insolvency Resolution Process (CIIRP) and clarify Group Insolvency procedures.

💡 Other Important Facts:

  • The amendments will address critical bottlenecks causing delays in the NCLT and NCLAT.
  • Clarity on Group Insolvency is vital for large corporate structures with multiple subsidiaries.
  • The reforms are expected to significantly improve India's ranking in the World Bank's Doing Business Report (Resolving InsolVency).

📚 Test Your Knowledge:

Which mechanism did the Union Cabinet approve to be introduced into the IBC for faster resolution?

Correct Answer: Creditor-Initiated Insolvency Resolution Process (CIIRP)

🚀 Quick Recap:

About IBC 2016

  • Full Form: Insolvency and Bankruptcy Code, Enacted: 2016, Objective: Time-bound resolution of insolvency.
  • Key Amendment: CIIRP allows creditors to manage resolution without fully replacing the management, Authority: Parliament to pass the amendment bill.