New Delhi [India], October 1 : Bharatiya Janata Party MP Baijayant Panda has been appointed as the Chairperson of the Select Committee of Lok Sabha on the Insolvency and Bankruptcy Code (Amendment) Bill, 2025.
Apart from Panda, 23 other MPs from various political parties have been appointed to the committee.
The committee includes BJP MPs D Purandeswari, CN Manjunath, Mitesh Patel Bakabhai, Anil Firojiya, Anand Kumar, Biplab Kumar Deb, Sanjay Jaiswal and Saumitra Khan, Congress MPs Karti P Chidambaram, Shreyas M Patel, Ravindra Vasantrao Chavan, Bhajan Lal Jatav, Neeraj Maurya (Samajwadi Party), D M Kathir Anand (DMK), Supriya Sule (NCP-SCP), Lavu Sri Krishna Devarayalu (TDP), Mahua Moitra (TMC), Sunil Kumar (JD-U), Shrikant Eknath Shinde (Shiv Sena), Navaskani K (IUML), P V Midhun Reddy (YSRCP), Rajkumar Sangwan (RJD), and Chandra Prakash Choudhary (AJSU).
Lok Sabha Speaker Om Birla appointed Baijayant Panda as Chairperson of the Select Committee.
He had earlier headed the Select Committee on the new Income Tax Bill
The IBC (Amendment) Bill proposes several structural and procedural changes to the Insolvency and Bankruptcy Code (IBC), 2016, and was referred to a Select Committee for wider examination.
The proposed amendments in the bill seek to incorporate new concepts including a Creditor-Initiated Insolvency Resolution Process (CIIRP), enabling provisions and measures to enhance efficiency at both resolution and liquidation stages.
Under the existing law, applications for initiating corporate insolvency resolution must be admitted within 14 days, but in practice the process takes over 434 days on average. To curb this delay, Section 7 of the Insolvency and Bankruptcy Code (IBC Code) is proposed to be amended to mandate admission solely on the existence of defaults.
To Streamline the corporate insolvency resolution process (CIRP) many reforms were proposed in the bill. It includes expanding the definition of resolution plans to allow asset sales, restricting the corporate applicant's role in proposing resolution professionals, clarifying government dues priority, and placing tighter controls on the withdrawal of CIRP applications.
On August 13, Union Finance Minister Nirmala Sitharaman introduced the Insolvency and Bankruptcy Code (Amendment) Bill, 2025 in the Lok Sabha, aiming to reduce delays and strengthen governance of the insolvency resolution process.