Tag: Restructuring and Insolvency

One of the innovations proposed in the Insolvency and Bankruptcy Code (Amendment) Bill, 2025 (the “Bill”) is a new resolution framework that is intended to serve as an alternative to the conventional corporate insolvency resolution process (“CIRP”) under the Insolvency and Bankruptcy Code, 2016. Termed as the creditor-initiated insolvency resolution process (“CIIRP”), this process is designed as a largely out-of-court mechanism, but with the National Company Law Tribunal playing a supervisory role at key stages, including in case of a dispute, for grant of a moratorium and approval of a resolution plan. Another distinguishing feature of the CIIRP is that the corporate debtor continues to remain in control of the business (subject to certain checks and balances), in contrast to the CIRP where control is ceded to the resolution professional. This note analyzes the CIIRP framework as proposed in the Bill. For our analysis of other provisions of the Bill, please refer to our note here.

The Insolvency and Bankruptcy Code (Amendment) Bill, 2025 (“Bill”) proposes the single biggest overhaul to the existing insolvency framework in India since the Insolvency and Bankruptcy Code, 2016 (“Code”) came into effect in December 2016. The Bill attempts to address various challenges that have arisen with the Code’s implementation and to clarify ambiguities and unintended consequences that have resulted from certain judicial decisions. These changes include amendments to streamline the corporate insolvency resolution process, changes to provide for supervision of the liquidation process by the committee of creditors, clarifications on treatment of security interests in liquidation and changes to the framework for preferential, undervalued, fraudulent, and extortionate credit transactions. In addition, the Bill introduces new concepts such as the creditor-initiated insolvency resolution process, which provides an alternative process to the corporate insolvency resolution process under the Code and enabling provisions for the Government to frame rules on group insolvency and cross border insolvency. These proposed amendments collectively aim to restore the Code’s core principles of clarity, speed, and commercial certainty, while adapting to the evolving requirements of creditors, insolvency professionals, and the broader financial ecosystem. The Bill, which was introduced in the Lok Sabha on August 12, 2025, has now been referred to a select committee of the Parliament for its consideration.
This note decodes the key amendments proposed by the Bill.

In a recent judgment, the Supreme Court of India ordered the liquidation of Jet Airways (India) Limited, bringing an end to the five-year-long saga of efforts to revive the distressed airline. Two years after the airline entered the corporate insolvency resolution process, the National Company Law Tribunal, in June 2021, approved the resolution plan submitted by the Jalan Fritsch Consortium, the successful resolution applicant. However, various challenges arose with implementation of the resolution plan, which led the successful resolution applicant to seek multiple extensions and concessions from the adjudicating authority. Finally, the Supreme Court set aside the March 2024 order of the National Company Law Appellate Tribunal and used its inherent powers under Article 142 of the Constitution to order the airline’s liquidation.

The Supreme Court’s judgment is significant as it underscores the importance of implementing resolution plans within agreed upon timelines and identifies certain gaps and shortcomings in the Insolvency and Bankruptcy Code, 2016 as far as implementation of resolution plans are concerned. This note analyzes the judgment to discuss its implications for the implementation of resolution plans as well as specific challenges in the context of insolvencies in the aviation industry.