The committee headed by senior BJP leader Baijayant Panda, which was tasked with vetting the Insolvency and Bankruptcy Code (IBC) Amendment Bill, 2025, tabled its report in Parliament on Wednesday.
The corporate affairs ministry is expected to revise the bill based on the panel’s suggestions that it deems fit, and seek Parliamentary nod.
Key suggestions
The panel has recommended that the bill be tweaked to incorporate a “clear statutory timeline” of three months for the National Company Law Appellate Tribunal (NCLAT) to dispose of an appeal. “Given that the effectiveness of the code rests on a strict time-bound framework, the committee therefore emphasises that undue appellate delays risk undermining the efficiency and certainty of the insolvency resolution process,” it said.
The committee has called on the government to incorporate basic principles of the cross-border insolvency framework within the current law itself, considering India’s unique socio-economic, judicial and institutional realities while designing it around a model UN law.
It also suggested that the government firm up the group insolvency framework, keeping in mind domestic factors, such as promoter-driven litigation, related-party influence, and the inherent complexity of cross-entity claims.”The report signals a return to first principles-insolvency as a collective, time-bound resolution mechanism-not a debt recovery tool or an endless litigation forum,” said Yogendra Aldak, executive partner at Lakshmikumaran & Sridharan Attorneys.
Shankey Agrawal, partner at BMR Legal, said: “The proposals seek to restore the system to early intervention, established priorities, and creditor-driven results, while deliberately avoiding the inclination to over-engineer group and cross-border insolvency situations.”