The 2025 amendments aim to accelerate insolvency resolution and promote business revival rather than liquidation.
NCLT timeline reduced to 180 days
Pre-pack insolvency extended to non-MSME companies
Protection for MSME promoters to bid for their stressed units
Safeguards against frivolous insolvency filings
Blockquote: “IBC 2025 signals a shift towards business revival — enabling debt restructuring instead of business closure.”
Faster restructuring
Lower litigation costs
Better access to credit support
NCLT infrastructure requirements
Need for skilled insolvency professionals
Q1: Can companies directly opt for pre-pack insolvency?
Yes, based on creditor approval.
Q2: Can financial creditors still push for liquidation?
Yes, if revival plans are not viable.
Q3: What happens if resolution timeline exceeds 180 days?
Extension allowed only under exceptional circumstances.
Q4: Do promoters lose control during insolvency?
Not under pre-pack model; they retain control under supervision.
Q5: Are homebuyers still considered financial creditors?
Yes, as upheld by the Supreme Court.
