RECENT AMENDMENTS TO IBC REGULATIONS – PART II

In this article we may see the amendments made by Insolvency and Bankruptcy Board of India in respect of the following regulations-

• Insolvency and Bankruptcy Board (Pre-Packaged Insolvency Resolution Process) (Amendment) Regulations, 2017 – Notification No. IBBI/2026-27/GN/REG/147, dated 01.06.2026, - came into effect from 02.06.2026.
• Insolvency and Bankruptcy Board (Voluntary Liquidation Process) (Amendment) Regulations, 2026 – Notification No. IBBI/2026-27/GN/REG/148, dated 01.06.2026 – came into effect from 02.06.2026.

In all the above three amendments to the regulations the format prescribed are replace by the words ‘such forms as notified by the Board through the Circular’.

Amendment to Pre-Packaged Insolvency Resolution Process

The amendments bring the following amendments to these Regulations-

Amendment to Regulation 2

Regulation 2(1)(h) defines the term ‘Form’ as a Form specified in the Schedule’. The amendment substituted the words ‘such format as notified by the board through the Circular’ for the words ‘a Form specified in the Schedule’.

The amendment omits Regulation 2(1)(o) which defines the term ‘Schedule’ as the schedule to these Regulations.

The Regulations prescribes 14 forms. The following table shows the details of the form dealt with by the erstwhile regulations-

Amendment to Regulation 18

The amendment substituted a new section 18 for the existing one. The newly substituted Regulation 18 provides for the information and documents to be furnished by the applicant. The newly substituted Regulation 28 provides the for the purpose of section 54(c) of the Code, the corporate applicant shall along with the application shall submit the following information and documents-

• a copy of the declaration made by the majority of the directors or partners, as the case may be, in such format as notified by the Board;
• a copy of the declaration, special resolution or resolution, as the case may be, for initiating pre-packaged insolvency resolution process in terms of section 54A;
• proof of approval from financial creditors, not being related parties, representing not less than fifty-one per cent. in value of the financial debt;
• details of insolvency professional as follows:

1.  the written consent of the proposed resolution professional in such format as notified by the Board;
2. the report of the resolution professional referred to in clause (a) of sub-section (1) of section 54B of the Code, prepared in such format as notified by the Board.

• audited financial statements of the corporate debtor for the last two financial years.
• provisional financial statements for the current financial year made up to the date of the declaration by the directors or partners, as the case may be; and
• a format as notified by the Board and submitted by the authorised representatives selected for the classes of creditors, wherever applicable.

The amendment omitted the Part ‘Schedule’.

Amendment to Voluntary liquidation Process

These regulations prescribe 9 forms to be filed in the voluntary liquidation process. The amendment done away with these forms and in place of such forms, the new format as prescribed by the Board through its circular. The following table shows the details of forms dealt with the erstwhile regulations-

IN these Regulations Schedule I prescribed the forms to be filed during the course of voluntary liquidation. Since all the forms are replaced by such format as notified by IBBI in its circular. The Amendment Substitutes Schedule II as Schedule I and there will be no more Schedule II.

Regulation 12 had its topic as ‘Consultation with Stakeholders’. The amendment substituted the words ‘Assistance by stakeholders.

Insertion of new Regulation 28A

The amendment inserted a new Regulation 28A dealing with ‘Submission and updation of claims. The newly inserted Regulation 28A(1) provides that a person, who claims to be a stakeholder, shall submit its claim, on or before the last date mentioned in the public announcement. Regulation 28A(2) provides that a stakeholder shall update its claim as and when the claim is satisfied, partly or fully, from any source in any manner, after the liquidation commencement date.

Amendment to Regulation 29

Regulation 29 deals with verification of claims. The amendment inserted a proviso to Regulation 29(1) which provides that the liquidator shall verify the claims submitted within thirty days from the last date for receipt of claims and may either admit or reject the claim, in whole or in part, as the case may be. The newly inserted proviso Regulation 29(1) provides that where the liquidator rejects a claim, he shall record in writing the reasons for such rejection.

The amendment inserted a new Regulation 29(2) after renumbering the existing 29(2) as 29(3). The newly inserted Regulation 29(2) provides that the liquidator shall communicate his decision of admission or rejection of claims to the stakeholder within seven days of such admission or rejection of claims.

Regulation 29(3) provides that a creditor may appeal to the Adjudicating Authority against the decision of the liquidator as per section 42 of the Code. The said Regulation 29(3) after incorporating the amendments provides that a creditor may approach to the Adjudicating Authority against the decision of the liquidator.

Insertion of a new regulation 42

The amendment inserted a new Regulation 42 which provides for termination of liquidation proceedings. Regulation 42(1) provides that the resolution referred to in clause (a) of sub-section (5A) of section 59, shall provide for –

1. rationale for termination of voluntary liquidation proceedings;
2. treatment of liquidation costs; and
3. a declaration that the termination will not result in prejudicially affecting the interest of any stakeholder.

Regulation 42(2) provides that For the purposes of clause (c) of sub-section (5A) of section 59, the liquidator shall intimate the Adjudicating Authority, along with a report in such form as notified by the Board through circular, regarding termination of voluntary liquidation proceedings, accompanied by a statement that –

1. due process for termination of voluntary liquidation proceedings has been followed; and
2.  the termination of voluntary liquidation proceedings is not initiated to defraud any person and the corporate person is solvent.

Regulation 42(3) provides that where the conditions specified under clause (a), (b) and (c) of sub-section (5A) of section 59 are satisfied, the liquidator shall, within seven days of the passing of the special resolution under clause (a) thereof or the approval of creditors under clause (b) thereof, as the case may be, intimate the Board and the Registrar of Companies along with the report prepared under sub-regulation (2), regarding termination of the voluntary liquidation proceedings.

Regulation 42(4) provides that upon termination of the voluntary liquidation proceedings under sub-section (5C) of section 59 of the Code—

1. the appointment and term of the liquidator shall stand terminated;
2. the liquidator shall cease to exercise any powers or functions under these regulations; and
3. no further action shall be taken under these regulations in respect of the voluntary liquidation proceedings.