The Centre accepted all suggestions of the select committee in the proposed Insolvency and Bankruptcy Bill (IBC) Bill tabled in Parliament last week, a top government official said.
The ministry of corporate affairs (MCA) has incorporated all the suggestions of the panel, including setting a timeline for the National Company Law Appellate Tribunal (NCLAT), the official added.
The IBC Bill proposed a complete overhaul of the code to pave the way for major reforms, including group and cross border insolvency and prepackaged insolvency for large corporations.
It has brought significant reforms with the addition of a new clause that allows assets of personal or corporate guarantor to be transferred to lenders as part of the insolvency resolution process.
In the report tabled in Parliament on December 16, 2025, BJP MP Baijayant Panda-led committee noted that the amendment Bill had failed to introduce any specific statutory timelines for the NCLAT. It suggested the introduction of a clear statutory timeline for the appellate tribunal
The panel has said the Bill be revised to include a new clause: “The National Company Law Appellate Tribunal shall dispose of an appeal within three months from the date of its receipt.”
The Bill was taken up for passing and further consideration in the Lok Sabha on Friday.
“The select committee’s suggestions have been incorporated, along with some additional measures to increase transparency in the code,” the official said.
The select committee, in its report, asked the government to codify the basic tenets of the cross-border insolvency framework directly within the code itself. This would provide clear legislative guidance and tailor the group insolvency framework to India’s unique institutional environment.
The panel suggested decriminalisation of certain IBC provisions, ensuring effective and accessible creditor initiated insolvency resolution process (CIIRP) with lower voting thresholds among other recommendations.
These suggestions have been incorporated in the revised Bill by the MCA.
The highly-anticipated Bill, which was under discussion since 2023, has made an important clarification relating to claims raised by state or central authorities.
It stated that only if there is a contractual agreement between parties for such claims would they be treated as secured creditors and not automatically get a higher priority in the IBC.
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