IBC 2025 Amendment & CIIRP | UPSC GS-3 | UPSCPDF

UPSCPDF Editorial Analysis: the IBC (Amendment) Bill 2025, the Creditor-Initiated Insolvency Resolution Process (CIIRP), the Vidarbha

💡 Key Takeaways | 🕰️ Evolution of India’s Insolvency Law | 🚪 The Section 7 Fix: From “May” to “Shall” | 🔍 Core Concepts (High-Yield) | 🔧 How CIIRP Works | ⚙️ Other Key Reforms in the Bill | 🧭 The Core Debate: A “Universal” CIIRP? | ⚠️ Key Challenges | 🛤️ The Way Forward | 📊 Marks Distribution Strategy | 📝 Model Answer | 🧩 Key Dimensions | 🧩 Related Practice Questions | 🧭 Quick Framing Angles | 👥 Key Actors & Institutions

The IBC, the 2025 Amendment Bill and the Creditor-Initiated Insolvency Resolution Process (CIIRP) — and the case for a “universal”, default-neutral trigger based on financial exposure, not regulatory identity A recent commentary (June 2026) examines the IBC (Amendment) Bill, 2025 — which introduces a Creditor-Initiated Insolvency Resolution Process (CIIRP) — and argues it should be made “universal” and “default-neutral”: replacing the “notified financial institution” gateway with a trigger based on financial exposure (any financial creditor backed by creditors holding ≥51% of the financial debt by value). The reform sits within the IBC’s enduring tension — quick remedies for creditors versus preserving a viable, going-concern business (the so-called “Chakravyuha” exit problem). The 2025 Bill, passed by the Lok Sabha, is a major overhaul: a hybrid CIIRP where the debtor stays in control under a