IBBI Amends Voluntary Liquidation Process Regulations, 2017
By COMMUNICATION COMMITTEE Posted On : July 13, 2026
The Insolvency and Bankruptcy Board of India (IBBI) has notified the IBBI (Voluntary Liquidation Process) (Amendment) Regulations, 2026, effective 2 June 2026, to streamline the voluntary liquidation framework and align it with recent reforms under the Insolvency and Bankruptcy Code (IBC). Some of the key amendments are:
a) Regulation 28A (New): This mandates that every stakeholder must submit its claim on or before the last date specified in the public announcement and further requires stakeholders to update their claims whenever they are partly or fully satisfied from any source after the liquidation commencement date. This ensures that the claims register remains accurate throughout the liquidation process.
b) Regulation 42: A comprehensive framework has been introduced for termination of voluntary liquidation proceedings under Section 59(5A) of the IBC. The amendment prescribes the contents of the termination resolution, the liquidator's reporting obligations, timelines for intimation to the Board and Registrar of Companies, and the legal consequences of termination, including cessation of the liquidator's powers.
Additionally, Schedule I, which prescribed model forms, has been omitted as part of the IBBI's effort to simplify compliance and provide greater procedural flexibility. Collectively, these amendments seek to expedite voluntary liquidation while preserving the value of avoidance claims and enhancing certainty for stakeholders.