Delays in insolvency case admissions continue to hinder timely resolutions in India, but a new framework under the proposed Insolvency and Bankruptcy Code (IBC) amendments seeks to change that.

The reforms, introduced in Parliament last week and now under review, aim to mandate faster case admissions, streamline resolution plan approvals, and improve certainty for bidders—measures expected to reduce value erosion and expedite the corporate insolvency resolution process.

Insolvency and Bankruptcy Board of India (IBBI) chairperson Ravi Mital said that a new framework being planned is aimed at making resolution faster and more efficient without compromising the rights of stakeholders.

“The proposed amendments (to Insolvency and Bankruptcy Code) are designed in a way that we expect that the resolution process will be completed faster. The time taken in the admission of a resolution plan has been further reduced. Under the new amendments, a time has been prescribed now for the adjudicating authority to approve the resolution plan,” Mital said.

He further said that once a plan is filed, in a large majority of cases there is usually no dispute on the bid. So, the amendments proposed that the committee of creditors (CoC) can request the adjudicating authority to approve the bid amount and hand over that company to the resolution applicant.

“This has been done in one or two cases earlier. Now, after the amendments, this (mechanism) will be tried again, and we believe that this will reduce the timeline for approval,” he said. Also, it will provide a certainty to the resolution applicant that they will get the company in a short period of time, and perhaps they will bid higher, Mital said.

Last week, the finance minister Nirmala Sitharaman introduced the Insolvency and Bankruptcy Code (Amendment) Bill, 2025 in the Lok Sabha, by including provisions related to group insolvency, cross-border cases, and a creditor-led process to expedite resolution of bankrupt companies. The bill was later referred to the select committee.

The Bill seeks to mandate that insolvency applications are admitted within 14 days. Currently, an average of 434 days is being taken for admission of cases, leading to considerable value loss for the corporate debtors.

Experts said that one of the major incidences of delay in the corporate insolvency resolution process has been at the admission stage which has negatively impacted outcomes.