New Delhi, Sept. 22 -- The introduction of a creditor-led insolvency resolution process (CLRP) in India's Insolvency and Bankruptcy Code (IBC) Amendment bill, 2025, is well meaning, but its focus on creditor-only initiations, default as the operative trigger and the court's role in key stages may make value protection a challenge.

Unlike the IBC's usual corporate insolvency resolution process (CIRP), the CLRP is a proposed option under which the corporate debtor keeps management control while creditors work towards a time-bound resolution (150 days extendable by 45 days) under limited court oversight, which is helpful given today's adjudicatory level delays.

The bill also aligns with the World Bank's 'B-ready' insolvency model that enco...