IBBI Notifies Amended IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016
By COMMUNICATION COMMITTEE Posted On : July 13, 2026
The Insolvency and Bankruptcy Board of India (IBBI) has notified the Insolvency Resolution Process for Corporate Persons (Third Amendment) Regulations, 2026, introducing procedural reforms aimed at improving efficiency, transparency and time-bound resolution under the Insolvency and Bankruptcy Code (IBC). Some of the key changes include:
a) Enhanced Disclosure Requirements at Initiation:
a. Operational Creditors: Under the substituted Regulation 2B, operational creditors must now provide more comprehensive information when filing for insolvency. This includes details of part-payments, assignments or transfers of debt, guarantees, a statement of account for principal and interest, related party status, and any pending recovery proceedings.
b. Corporate Applicants: The new Regulation 2E requires corporate applicants to furnish key financial and asset-related details from their books, including lists of bank accounts, creditors, and ongoing litigations.
b) Improved Information Access for Resolution Professionals (RPs):
a. Cooperation Mandate: Regulation 3A was renamed "Duty to extend assistance and cooperation" and expanded to require a wider range of individuals (as covered under Section 19 of the IBC) to assist the RP.
b. Power to Call for Info: Under Regulation 4, the RP can now demand information from creditors, financial institutions, and statutory authorities. Furthermore, creditors are mandated to share records regarding the corporate debtor's (CD) assets and liabilities during the first Committee of Creditors (CoC) meeting.
c) Reasoned Communication on Claims:
a. The RP or Interim RP must now communicate the decision to admit or reject a claim (in whole or in part) within seven days of that decision. This communication must include the specific reasons for the decision.
d) Structured Treatment of Guarantors’ Assets:
a. New Regulations 28A and 28B provide a mechanism for managing a guarantor's assets that have been seized by a creditor. The CoC must factor the value of these assets into their consideration of resolution plans to protect the interests of all stakeholders. It also facilitates coordination between professionals if the corporate guarantor is also undergoing insolvency.
e) Stricter Process for Withdrawal of Application:
a. Substituted Regulation 30A dictates that applications for withdrawal (under Section 12A) must be submitted to the Adjudicating Authority within three days of CoC approval.
b. The application must be backed by a bank guarantee or demand draft for process costs.
c. Notably, withdrawal applications cannot be made before the CoC is constituted or after the invitation for expressions of interest has been issued.
f) Dissolution of the CD During CIRP:
a. Regulation 40E introduces a framework allowing the CoC to seek the dissolution of the corporate debtor directly during the CIRP. This requires a 66% majority vote and is applicable if the CD's assets are insufficient to cover insolvency costs or cannot be effectively realized through standard liquidation.
a) Enhanced Disclosure Requirements at Initiation:
a. Operational Creditors: Under the substituted Regulation 2B, operational creditors must now provide more comprehensive information when filing for insolvency. This includes details of part-payments, assignments or transfers of debt, guarantees, a statement of account for principal and interest, related party status, and any pending recovery proceedings.
b. Corporate Applicants: The new Regulation 2E requires corporate applicants to furnish key financial and asset-related details from their books, including lists of bank accounts, creditors, and ongoing litigations.
b) Improved Information Access for Resolution Professionals (RPs):
a. Cooperation Mandate: Regulation 3A was renamed "Duty to extend assistance and cooperation" and expanded to require a wider range of individuals (as covered under Section 19 of the IBC) to assist the RP.
b. Power to Call for Info: Under Regulation 4, the RP can now demand information from creditors, financial institutions, and statutory authorities. Furthermore, creditors are mandated to share records regarding the corporate debtor's (CD) assets and liabilities during the first Committee of Creditors (CoC) meeting.
c) Reasoned Communication on Claims:
a. The RP or Interim RP must now communicate the decision to admit or reject a claim (in whole or in part) within seven days of that decision. This communication must include the specific reasons for the decision.
d) Structured Treatment of Guarantors’ Assets:
a. New Regulations 28A and 28B provide a mechanism for managing a guarantor's assets that have been seized by a creditor. The CoC must factor the value of these assets into their consideration of resolution plans to protect the interests of all stakeholders. It also facilitates coordination between professionals if the corporate guarantor is also undergoing insolvency.
e) Stricter Process for Withdrawal of Application:
a. Substituted Regulation 30A dictates that applications for withdrawal (under Section 12A) must be submitted to the Adjudicating Authority within three days of CoC approval.
b. The application must be backed by a bank guarantee or demand draft for process costs.
c. Notably, withdrawal applications cannot be made before the CoC is constituted or after the invitation for expressions of interest has been issued.
f) Dissolution of the CD During CIRP:
a. Regulation 40E introduces a framework allowing the CoC to seek the dissolution of the corporate debtor directly during the CIRP. This requires a 66% majority vote and is applicable if the CD's assets are insufficient to cover insolvency costs or cannot be effectively realized through standard liquidation.
For more details please visit https://ibbi.gov.in/uploads/whatsnew/76d1b65369ccedf6f9507fc7b57a9782.pdf