New Chapter on CIRP-CI : Creditor Initiated - As per the IBC Amendment Bill, 2025
Insolvency and Bankruptcy Code (Amendment) Bill, 2025 Subject: Clause 40 — New Chapter IV-A: Creditor-Initiated Insolvency Resolution Process (Sections 58A to 58K) — Analysis of Proposed Sections and Cross-Reference Verification Reference: Bill No. 107 of 2025 (as introduced in Lok Sabha) Introduced by: Smt. Nirmala Sitharaman, Minister of Finance and Corporate Affairs, 12th August, 2025 I. Overview and Legislative Context Clause 40 of the Insolvency and Bankruptcy Code (Amendment) Bill, 2025 ("Bill") omits the existing Chapter IV of Part II of the principal Act (Fast Track Corporate Insolvency Resolution Process, comprising sections 55 to 58) and substitutes in its place an entirely new Chapter IV-A titled "Creditor-Initiated Insolvency Resolution Process" ("CIRP-CI"). This is achieved by inserting eleven new sections - sections 58A through 58K - into Part II of the Insolvency and Bankruptcy Code, 2016 ("IBC...