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Core Purpose

The Insolvency and Bankruptcy Board of India issues the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fifth Amendment) Regulations, 2025, to further amend the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.

Detailed Summary

The Insolvency and Bankruptcy Board of India (IBBI), exercising powers under clause (t) of sub-section (1) of section 196 read with section 240 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), has published the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fifth Amendment) Regulations, 2025, on July 4, 2025. These regulations amend the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (referred to as 'the principal regulations'), and will come into force on their publication date in the Official Gazette. Specifically, regulation 36(1) is amended to insert ", and its subsequent updates thereof" after "insolvency commencement date". A new clause (ha) is inserted into regulation 36(2), requiring details of all identified avoidance transactions under Chapter III or fraudulent or wrongful trading under Chapter VI of Part II of the Code, and subsequent filings before the Adjudicating Authority, as referred under sub-regulation (3A) of regulation 35A. Furthermore, a new sub-regulation (2A) is inserted into regulation 38, stipulating that a resolution plan shall not provide for the assignment of any avoidance transactions under Chapter III or fraudulent or wrongful trading under Chapter VI of Part II of the Code that were not disclosed in the information memorandum and not intimated to all prospective resolution applicants under sub-regulation (3A) of regulation 35A before the last date for submission of resolution plans. This new sub-regulation (2A) does not apply to resolution plans submitted to the Adjudicating Authority under sub-section (6) of section 30 on or before the commencement date of these Fifth Amendment Regulations. The principal regulations were originally published vide notification No. IBBI/2016-17/GN/REG004, dated 30th November, 2016, and were last amended by notification No. IBBI/2025-26/GN/REG127, dated 26th May, 2025 (Fourth Amendment).

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-05072025-264421 EXTRAORDINARY PART III—Section 4 PUBLISHED BY AUTHORITY No. 478] NEW DELHI, FRIDAY, JULY 4, 2025/ASHADHA 13, 1947 INSOLVENCY AND BANKRUPTCY BOARD OF INDIA NOTIFICATION New Delhi, the 4th July, 2025 Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fifth Amendment) Regulations, 2025. F. No. IBBI/2025-26/GN/REG128.— In exercise of the powers conferred by clause (t) of sub- section (1) of section 196 read with section 240 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Insolvency and Bankruptcy Board of India hereby makes the following regulations to further amend the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, namely:- 1. (1) These regulations may be called the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fifth Amendment) Regulations, 2025. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (hereinafter referred to as 'the principal regulations'), in regulation 36, (i) in sub-regulation (1), after the words “insolvency commencement date", the words and mark ", and its subsequent updates thereof", shall be inserted. (ii) in sub-regulation (2), after clause (h), the following clause shall be inserted, namely:- "(ha) details of all identified avoidance transactions, if any, under Chapter III or fraudulent or wrongful trading under Chapter VI of Part II of the Code and subsequent filings before Adjudicating Authority, as referred under sub-regulation (3A) of regulation 35A;" 3. In the principal regulations, in regulation 38, after sub-regulation (2), the following sub-regulation shall be inserted, namely: - "(2A) A resolution plan shall not provide for assignment of any avoidance transactions under Chapter III or fraudulent or wrongful trading under Chapter VI of Part II of the Code that were not: (a) disclosed in the information memorandum; and (b) intimated to all prospective resolution applicants under sub-regulation (3A) of regulation 35A before the last date for submission of resolution plans: Provided that this sub-regulation shall not apply to any resolution plan that has been submitted to the Adjudicating Authority under sub-section (6) of section 30 on or before the date of commencement of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fifth Amendment) Regulations, 2025." RAVI MITAL, Chairperson [ADVT.-III/4/Exty./211/2025-26] Note: The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 were published vide notification No. IBBI/2016- 17/GN/REG004, dated 30th November, 2016 in the Gazette of India, Extraordinary, Part III, Section 4, No. 432 on 30th November, 2016 and were last amended by the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fourth Amendment) Regulations, 2025 published vide notification No. IBBI/2025-26/GN/REG127, dated the 26th May, 2025 in the Gazette of India, Extraordinary, Part III, Section 4, No. 390 on 26th May, 2025. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054. KUMER CHANDER AND MEENA Пам: 2025.07.05 18:00:20 +0530

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