Parliament Clears IBC Amendment Bill to Expedite Insolvency Resolutions and Curb Backlogs
The Rajya Sabha passed the bill with a voice vote, while it was passed by the Lok Sabha on March 30
New Delhi: Parliament on Wednesday passed amendments to the Insolvency and Bankruptcy Code (Amendment) Bill, 2026 to provide faster resolutions, reduce case backlog and strengthen the financial ecosystem. The Rajya Sabha passed the bill with a voice vote, while it was passed by the Lok Sabha on March 30.
Replying to a short discussion on the bill in the Rajya Sabha, Union finance minister Nirmala Sitharaman said the IBC has contributed to the health of the Indian banking sector and helped recover assets. “All 11 recommendations made by a Lok Sabha select committee were accepted by the government,” she said.
In addition, one more recommendation of the ministry of corporate affairs was added to it. On August 12, 2025, the government introduced the bill in the Lok Sabha to amend the Insolvency and Bankruptcy Code (IBC), proposing a raft of changes, including provisions to reduce the time taken for admission of insolvency resolution applications.
The bill was referred to a select committee of the Lok Sabha, which submitted its report in December 2025. “In FY 2017-18, for every 1 company resolved, 5 companies went into liquidation. However, in FY 2024-25, this ratio has now substantially improved and has come close to 1,” she said.