Baijayant Panda to head Select Committee on Insolvency and Bankruptcy Code Amendment Bill 2025

BJP leader and Lok Sabha member Baijayant Panda was appointed on Wednesday as the Chairman of the Select Committee constituted to examine the Insolvency and Bankruptcy Code (Amendment) Bill, 2025.

According to an official notification, the Select Committee will comprise 24 members drawn from the Lok Sabha.

Alongside Shri Panda, the members include Dr. D. Purandeswari, Dr. C. N. Manjunath, Mitesh Patel Bakabhai, Anil Firojiya, Dr. Anand Kumar, Shri Biplab Kumar Deb, Dr. Sanjay Jaiswal, Saumitra Khan, Karti P. Chidambaram, Shreyas M. Patel, Ravindra Vasantrao Chavan, Bhajan Lal Jatav, Neeraj Maurya, Thiru D. M. Kathir Anand, Supriya Sule, Lavu Sri Krishna Devarayalu, Mahua Moitra, Sunil Kumar, Dr. Shrikant Eknath Shinde, Navaskani K, P V Midhun Reddy, Dr. Rajkumar Sangwan, and Shri Chandra Prakash Choudhary.

The Insolvency and Bankruptcy Code (Amendment) Bill, 2025, introduced in the Lok Sabha on August 12, 2025, seeks to update and strengthen the existing framework under the Insolvency and Bankruptcy Code, 2016.

It amends the Insolvency and Bankruptcy Code, 2016, which provides a time-bound framework for resolving insolvency among companies and individuals. The major provisions include:

• Replacement of Fast-Track Process
  
  
  • The Bill removes the fast-track insolvency resolution process.
    
  • Introduces a creditor-initiated insolvency resolution process (CIIRP) for specific categories of debtors notified by the government.
    
  • Only certain financial creditors can initiate CIIRP, with at least 51% creditor consent (by debt value).
    
  • Management remains with the debtor, but is overseen by a Resolution Professional (RP).
    
    
• Safeguards for Debtors
  
  
  • The debtor must be informed and given at least 30 days to respond before CIIRP is initiated.
    
  • Debtors may also raise objections before the National Company Law Tribunal (NCLT).
    
  • If no resolution plan is received in time, or if cooperation is lacking, NCLT may convert CIIRP into the standard CIRP.
    
    
• Group Insolvency
  
  
  • Enables joint insolvency proceedings for companies within the same group.
    
  • Provisions include: a common tribunal bench, a shared resolution professional, and a joint committee of creditors (CoC).
    
    
• Cross-Border Insolvency
  
  
  • For the first time, the Code will cover insolvency cases involving assets or creditors in multiple countries.
    
  • The government will prescribe rules for administering cross-border proceedings.
    
    
• Strengthening NCLT Processes
  
  
  • Makes it mandatory for NCLT to admit insolvency applications if conditions are met.
    
  • Bars rejection on additional grounds not specified in the Code.
    
  • Requires NCLT to record reasons in writing if it fails to pass an order within 14 days.
    
    
• Liquidation Provisions
  
  
  • CoC empowered to supervise liquidation and replace the liquidator if necessary.
    
  • NCLT must order liquidation within 30 days of application.
    
  • Liquidation process must be completed in 180 days (extendable by 90 days).
    
  • Voluntary liquidation must be completed within one year.
    
    
• Penalties for Misuse
  
  
  • Introduces fines for frivolous or vexatious petitions before NCLT or Debt Recovery Tribunal.
    
  • Penalty ranges between ₹1 lakh and ₹2 crore.