LATEST CHANGES IN IBC REGULATIONS

The Insolvency and Bankruptcy Board of India (‘Board’ for short) made amendment in the regulations as detailed below-

• Notification No. F. No. IBBI/2025-26/GN/REG129, dated 14.10.2025- Insolvency and Bankruptcy Board of India (Liquidation Process) (Second Amendment) Regulations, 2025, which came into effect from 14.10.2025.
• Notification NO. F. No. IBBI/2025-26/GN/REG130, dated 14.10.2025 – Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Sixth Amendment) Regulations, 2025, which came into effect from 14.10.2025.
• Notification No. F. No. IBBI/2025-26/GN/REG131, dated 20.11.2025- Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) (Second Amendment) Regulations, 2025, which came into effect from 20.11.2025.
• Notification No. F. No. IBBI/2025-26/GN/REG132, dated 20.11.2025 -Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Second Amendment) Regulations, 2025 – came into effect from 20.11.2025.

Amendments vide notification No. 129

The liquidators may, in the liquidation proceedings, sell the corporate debtor as a going concern. This concept has been omitted vide this amendment. This notification omitted the following provisions which dealt with sale of corporate debtor as going concern-

• Section 31A(1)(f) – This section provides for the constitution of Stakeholders Consultation Committee by the liquidator, comprising of all creditors of the corporate debtor within 60 days from date of commencement of liquidation. This committee will advise the liquidator on the matters among one is ‘to review of marketing strategy in case of failure of sale of corporate debtor as a going concern’. This provision is omitted by the amendment.
• Section 32A – Sale a going concern-

1. Where the committee of creditors has recommended sale under clause (e) or (f) of regulation 32 or where the liquidator is of the opinion that sale under clause (e) or (f) of regulation 32 shall maximise the value of the corporate debtor, he shall endeavour to first sell under the said clauses.
2. For the purpose of sale under sub-regulation (1), the group of assets and liabilities of the corporate debtor, as identified by the committee of creditors under sub-regulation (2) of regulation 39C of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 shall be sold as a going concern.
3. Where the committee of creditors has not identified the assets and liabilities under sub-regulation (2) of regulation 39C of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, the liquidator shall identify and group the assets and liabilities to be sold as a going concern, in consultation with the consultation committee.
4. The liquidator may sell the assets of the corporate debtor under clause (e) of regulation 32 exclusively only at the first auction.

Explanation: For the purpose of this sub-regulation, it is hereby clarified that the sale of the corporate debtor under clause (e) of regulation 32 cannot be offered as the only option for bidders after the first auction.

5. Where the liquidator is of the opinion that it is viable to run the corporate debtor as a going concern, he shall consult the consultation committee and only on its advice he shall run the affairs of the corporate debtor as a going concern to the extent approved.

The above said Regulation 32A was omitted by the amendment.

• Amendment to Section 32 – Realisation of Accounts

After incorporating the amendments made in this regulation, the revised regulation reads as below-

32. Sale of Assets, etc.

The liquidator may sell-

(a) an asset on a standalone basis;

(b) the assets in a slump sale;

(c) a set of assets collectively; or

(d) the assets in parcels:

(e) omitted – before omission it reads as - (e) the corporate debtor as a going concern; or

(f) omitted – before omission it reads as - (f) the business(s) of the corporate debtor as a going concern:

Provided that where an asset is subject to security interest, it shall not be sold under any of the clauses (a) to (d)*unless the security interest therein has been relinquished to the liquidation estate.

Before amendment it is (f).

Amendments vide Notification No. 130

This amendment omitted Regulation 39C of IBBI (Insolvency Resolution Process for corporate persons) Regulations, 2016. The omitted Rule 39C provides for assessment of sale as a going concern. This Regulation provides that-

(1) While approving a resolution plan under section 30 or deciding to liquidate the corporate debtor under section 33, the committee may recommend that the liquidator may first explore sale of the corporate debtor as a going concern under clause (e) of regulation 32 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 or sale of the business of the corporate debtor as a going concern under clause (f) thereof, if an order for liquidation is passed under section 33.

(2) Where the committee recommends sale as a going concern, it shall identify and group the assets and liabilities, which according to its commercial considerations, ought to be sold as a going concern under clause (e) or clause (f) of regulation 32 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016.

(3) The resolution professional shall submit the recommendation of the committee under sub-regulations (1) and (2) to the Adjudicating Authority while filing the approval or decision of the committee under section 30 or 33, as the case may be.

This amendment brings changes in the fees payable to liquidator. The amended Regulation 39D provides that-

While approving a resolution plan under section 30 or deciding to liquidate the corporate debtor under section 33, the committee may, in consultation with the resolution professional, fix the fee payable to the liquidator, if an order for liquidation is passed under section 33, for –

(a) the period, if any, used for compromise or arrangement under section 230 of the Companies Act, 2013; and (newly inserted)

(b) omitted.*

(c) the balance period of liquidation.

*The omitted Regulation 39D (b) provides that ‘the period, if any, used for sale under clauses (e) and (f) of regulation 32 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016; and’

Amendment vide Notification No. 131

This amendment inserted a new Regulation 23 in the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process of Personal Guarantors to Corporate Debtors) Regulations, 2019, The newly inserted Regulation provides the procedure of filing forms under these Regulations.

Filing forms

The resolution professional shall file the Forms, along with enclosures thereto, as notified by the Board through circular, as per the timelines stipulated against each Form. The resolution professional shall ensure that the Forms and its enclosures filed under this regulation are accurate and complete.

Obligations of the Board

The Board shall make available the Forms referred to in sub-regulation (1) on the electronic platform and may modify them from time to time.

Late fee

The filing of a Form under this regulation after the due date of submission, whether by correction, updation or otherwise, shall be accompanied by a fee of Rs.500/- per Form for each calendar month of delay after the date notified by the Board.

Liability of Resolution Professional

The resolution professional shall be liable to any action which the Board may take as deemed fit under the Code or any regulation made thereunder, including refusal to issue or renew Authorisation for Assignment, for -

(i) failure to file a Form along with requisite information and records;

(ii) inaccurate or incomplete information or records filed in or along with a Form; or

(iii) delay in filing the Form.

Amendments vide Notification No. 132

This amendment inserted a new Regulation 7B in Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016. The Board, through this amendment, regulates the number of assignments that can be handled by a Insolvency Professionals in CIRP and Liquidator matters.

The newly inserted Regulation 7B provides that an insolvency professional who is not an insolvency professional entity, shall not at any point of time, have more than 10 assignments in aggregate as interim resolution professional and resolution professional in a corporate insolvency resolution process and as a liquidator in a liquidation process, of which not more than 3 assignments shall have admitted claims exceeding Rs. 1000 crore each.

An insolvency professional who is not an insolvency professional entity, already holding more such assignments than the limit specified in this regulation on the date of commencement of this amendment, shall not accept any such new assignment until the number of his ongoing assignments falls below the limit specified in this regulation.

Amendment to Schedule 1

This amendment brings amendment to para 6 of Schedule I to the Regulation. After amendment the para 6 reads - In cases where the insolvency professional is dealing with assets of a debtor during liquidation or bankruptcy process, he must ensure that he or his relatives do not knowingly acquire any such assets, whether directly or indirectly unless it is shown that there was no impairment of objectivity, independence or impartiality in the liquidation or bankruptcy process and the prior approval of the Adjudicating Authority (before amendment – the approval of the Board) has been obtained in the matter.

This amendment omitted para 22 of Schedule I - An insolvency professional must refrain from accepting too many assignments, if he is unlikely to be able to devote adequate time to each of his assignments.