TaxTMI 
TaxTMI 
Insolvency and Bankruptcy Board of India (Liquidation Process) (Fourth Amendment) Regulations, 2026
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.... principal regulations'), in regulation 2, in sub-regulation (1):- (i) for clause (ba), the following clause shall be substituted, namely:- "(ba) "committee" means a committee of creditors constituted under section 21;". (ii) in clause (ea), (a) sub-clause (v) shall be omitted. (b) sub-clause (vii) shall be omitted. 3. In the principal regulations, for regulation 2A, the following regulation shall be substituted, namely:- "2A. Contributions to liquidation costs. The liquidator may call upon the members of the committee to contribute the excess of the liquidation costs over the liquid assets of the corporate debtor, as estimated by him, in such manner and subject to such terms and conditions as approved by the committee." 4. In the principal regulations, in regulation 2B, after the third proviso, the following proviso shall be inserted, namely:- "Provided further that no compromise or arrangement under section 230 of the Companies Act, 2013 shall be filed by the liquidator unless- (a) such compromise or arrangement has been approved by requisite majority of creditors as provided ....
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....nbsp; 7. In the principal regulations, in regulation 5:- (i) for sub-regulation (1), the following sub-regulation shall be substituted, namely:- "(1) The liquidator shall prepare and submit: (a) progress report(s); and (b) the final report prior to dissolution: to the Adjudicating Authority in the manner specified under these Regulations." (ii) in sub-regulation (2), the words "and minutes" shall be omitted. (iii) in sub-regulation (3), for the words "make the reports and minutes", the words "make the reports" shall be substituted. 8. In the principal regulations, in regulation 7, in sub-regulation (1), after the words "may appoint professionals" the words "with the approval of the committee" shall be inserted. 9. In the principal regulations, for regulation 8, the following regulations shall be substituted, namely:- "8. Committee of creditors. (1) The committee of creditors constituted under section 21 shall continue to function during the liquidation process: Provided that a secured creditor who has not relinquished his security interest und....
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.... voting share of not less than sixty-six per cent., in matters relating to: (a) sale under regulation 32, including manner of sale, pre-bid qualifications, reserve price, marketing strategy and auction process; (b) the manner in which proceedings in respect of preferential transactions, undervalued transaction, extortionate credit transaction or fraudulent or wrongful trading, if any, shall be pursued after dissolution of the corporate debtor and the manner in which the proceeds, if any, from these proceedings shall be distributed; and (c) assignment of not readily realisable assets. (6) The committee shall have access to all relevant records and information as may be required by the committee. (7) The authorised representative, appointed during the corporate insolvency resolution process, shall continue to act as the authorised representative of such creditors in the liquidation process and the provisions of subregulations (3A) to (12) of regulation 16A of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 shall apply mutatis mutandis. 8A. Facilitation of t....
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....tract" shall be substituted. 12. In the principal regulations, in regulation 12:- (i) in sub-regulation (1), for the words "Form B of Schedule II" the words "such format as notified by the Board" shall be substituted. (ii) sub-regulation (2), shall be omitted. 13. In the principal regulations, in regulation 13: - (i) for the words "Adjudicating Authority" the word "committee" shall be substituted. (ii) for the words "seventy-five" the word "thirty" shall be substituted. 14. In the principal regulations, in regulation 14, for the words "he shall consult the consultation committee and if it advises for early dissolution, he may apply, along with a detailed report incorporating the views of the consultation committee, to the Adjudicating Authority for early dissolution of the corporate debtor and for necessary directions in respect of such dissolution", the words "he shall place the agenda in this regard before the committee and if it decides by a voting share of not less than sixty-six per cent. for early dissolution, he shall apply, along with a detailed report incorporating the decision of the committee, to the Adjudicating Authority for....
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....est, if any, as on the liquidation commencement date", the words "for the newly submitted claims, if any, as on the insolvency commencement date" shall be substituted. (iii) after sub-regulation (2), the following sub-regulation shall be inserted, namely:- "(3) A stakeholder shall update its claim as and when the claim is satisfied, partly or fully, from any source in any manner, after the insolvency commencement date." 17. In the principal regulations, in regulation 17, in sub-regulation (1), for the words "Form C of Schedule II", the words "such format as notified by the Board" shall be substituted. 18. In the principal regulations, in regulation 18, in sub-regulation (1), for the words "Form D of Schedule II", the words "such format as notified by the Board" shall be substituted. 19. In the principal regulations, in regulation 19: - (i) in sub-regulation (1), for the words "Form E of Schedule II", the words "such format as notified by the Board" shall be substituted. (ii) in sub-regulation (2), for the words "Form F of Schedule II", the words "such format as notified by the Board" shall be substituted. 20. In the principal re....
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....ns, to the stakeholder within seven days of such admission or rejection of claims." 24. In the principal regulations, in regulation 31, in sub-regulation (2), for the words "forty-five", the words "thirty" shall be substituted. 25. In the principal regulations, regulation 31A shall be omitted. 26. In the principal regulations, after the proviso to regulation 32, the following clarification shall be inserted, namely:- "Clarification: It is hereby clarified that the liquidator shall not sell any immovable and movable property or actionable claims of the corporate debtor in liquidation to any person who is ineligible to be a resolution applicant under section 29A." 27. In the principal regulations, regulation 32B shall be omitted. 28. In the principal regulations, in regulation 33: (i) in sub-regulation (1), the following proviso shall be inserted, namely:- "Provided that the liquidator shall not sell the assets without prior permission of the Adjudicating Authority under this sub-regulation to: (a) a related party of the corporate debtor subject to proviso to clause (f) of sub-section (1) of Section 35; (b) his related....
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....ofessional entity of which the liquidator is a partner or director." (ii) in sub-regulation (3), the words "or businesses, as the case may be" shall be omitted. (iii) in sub-regulation (4), the words "or businesses" shall be omitted. (iv) in sub-regulation (5), the word "consultation" shall be omitted. (v) in sub-regulation (6), the words "members of the consultation" shall be omitted. (vi) in sub-regulation (7), the word "consultation" shall be omitted. 31. In the principal regulations, in regulation 37, in sub-regulation (2):- (i) for the words "twenty one" the word "seven" shall be substituted. (ii) for the words "thirty" the words "fourteen" shall be substituted. 32. In the principal regulations, in regulation 37A, in sub-regulation (1): - (i) for the words "in consultation with" the words "with prior approval of" shall be substituted. (ii) the words "stakeholders' consultation" and "in accordance with regulation 31A" shall be omitted. (iii) in the explanation to sub-regulation (1), after the words "section 66 of the Code" the words and mark ", whether crystallised or not" shall be i....
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....losure of the liquidation process." 40. In the principal regulations, in regulation 45A: - (i) in clause (e) of sub-regulation (2), the word "consultation" shall be omitted. (ii) in clause (i), the words "going concern sale in liquidation process or" shall be omitted. (iii) in clause (n) of sub-regulation (2), the words "preliminary report, asset memorandum," and "asset sale report, annual status report" shall be omitted. (iv) sub-regulation (5) shall be omitted. 41. In the principal regulations, in regulation 46, in sub-regulation (5), (7) and (7D), for the word "Form-I", the words "such format as notified by the Board" shall be substituted. 42. In the principal regulations, for regulation 47, the following regulation shall be substituted, namely:- "47. Model time-line for liquidation process. The following Table presents a model timeline of liquidation process of a corporate debtor from the liquidation commencement date, assuming that the process does not include compromise or arrangement under section 230 of the Companies Act, 2013 (18 of 2013) : Model Timeline for Liquidation Process Sl. N....
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.... + 180 13 ^ [Reg. 46 Deposit the amount of unclaimed dividends and undistributed proceeds Before submission of application under sub-regulation (2) of regulation 45 14 Sch-1 Sl. No 12 Time period to H1 bidder to provide balance sale consideration Within 90 days of the date of invitation to provide the balance amount.] [AA: Adjudicating Authority, LCD: Liquidation Commencement Date] 43. In the principal regulations, in Schedule I, in clause 1:- (i) sub-clause (1A) shall be omitted. (ii) in sub-clause (1B), the word "consultation" shall be omitted. (iii) in sub-clause (1B), for the word "advises" the word "decides" shall be substituted. (iv) in sub-clause (4), after the words "be further reduced", the words and marks ", with the approval of the committee,", shall be inserted. (v) the proviso to sub-clause (4) shall be omitted. (vi) in sub-clause (11A), after the words "Where the liquidator" the words ", with the approval of the committee with voting share of sixty-six per cent.," shall be insert....