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Core Purpose

Notification amending the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.

Detailed Summary

The Insolvency and Bankruptcy Board of India, in exercise of powers conferred by section 196(1)(t) read with section 240 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), has made the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fourth Amendment) Regulations, 2025. These regulations further amend the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. The amendments include inserting sub-regulation (5) after sub-regulation (4) in regulation 18, allowing the committee to direct the resolution professional to invite interim finance providers as observers to committee meetings. Sub-regulation (1A) is inserted after sub-regulation (1) in regulation 36A, permitting the resolution professional, with committee approval, to invite expression of interest for the corporate debtor as a whole, or for asset sale, or both. Sub-regulation (6A) is omitted from regulation 36B. In regulation 38(1)(b), the punctuation is changed, and a proviso is inserted stating that financial creditors who did not vote in favour of a resolution plan with staged payments shall be paid at least pro rata and in priority over those who voted in favour, in each stage. In regulation 39(2), the words "which comply with the requirements of the Code and regulations made thereunder" are omitted, and the words "non-compliant plans and" are inserted. In regulation 39(3)(a), the marks and words ", which comply with the requirements of the Code and regulations made thereunder," are inserted after "under sub-regulation (2)". These amendments come into force on the date of their publication in the Official Gazette. The principal regulations were first published vide notification No. IBBI/2016-17/GN/REG004, dated 30th November, 2016, and last amended by notification No. IBBI/2025-26/GN/REG126, dated 19th May, 2025.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-28052025-263435 EXTRAORDINARY PART III—Section 4 PUBLISHED BY AUTHORITY No. 390] NEW DELHI, MONDAY, MAY 26, 2025/JYAISTHA 5, 1947 INSOLVENCY AND BANKRUPTCY BOARD OF INDIA NOTIFICATION New Delhi, the 26th May, 2025 Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fourth Amendment) Regulations, 2025. F. No. IBBI/2025-26/GN/REG127.—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) (Fourth 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 18, after sub-regulation (4), the following sub-regulation shall be inserted, namely:- "(5) The committee may direct the resolution professional to invite the providers of interim finance to attend as observers without voting rights, such meeting(s) of the committee, as the committee may decide." 3. In the principal regulations, in regulation 36A, after sub-regulation (1), the following sub-regulation shall be inserted, namely: - “(1A) The resolution professional may, with the approval of the committee, invite expression of interest for submission of resolution plans for the corporate debtor as a whole, or for sale of one or more of assets of the corporate debtor, or for both." 4. In the principal regulations, in regulation 36B, sub-regulation (6A) shall be omitted. 5. In the principal regulations, in regulation 38, (i) in sub-regulation (1), (a) In clause (b), for the word and mark "plan.", the word and mark "plan:" shall be substituted. (b) after clause (b), the following proviso shall be inserted, namely:- "Provided that where a resolution plan provides for payment in stages, the financial creditors who did not vote in favour of the resolution plan shall be paid at least pro rata and in priority over financial creditors who voted in favour of the plan, in each stage." 6. In the principal regulations, in regulation 39, (i) in sub-regulation (2), the words "which comply with the requirements of the Code and regulations made thereunder", shall be omitted. (ii) in sub-regulation (2), after the words “along with the details of”, the words “non-compliant plans and", shall be inserted. (iii) in sub-regulation (3), in clause (a), after the words "under sub-regulation (2)", the marks and words “, which comply with the requirements of the Code and regulations made thereunder,”, shall be inserted. RAVI MITAL, Chairperson [ADVT.-III/4/Exty./123/2025-26] 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) (Third Amendment) Regulations, 2025 published vide notification No. IBBI/2025-26/GN/REG126, dated the 19th May, 2025 in the Gazette of India, Extraordinary, Part III, Section 4, No. 375 on 19th 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.

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