The Insolvency and Bankruptcy Board of India (IBBI) has notified the IBBI (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2026 to implement changes introduced by the Insolvency and Bankruptcy Code (Amendment) Act, 2026. The amendments aim to improve information availability, reduce disputes, and align the corporate insolvency resolution process (CIRP) with the amended Code. Key changes include enhanced disclosure requirements by operational creditors and corporate applicants at the initiation stage, expanded powers of resolution professionals to obtain information from creditors, financial institutions, and statutory authorities, and mandatory communication of claim admission or rejection decisions with reasons within seven days. The regulations also introduce a framework for handling guarantors’ assets under Section 28A, require consideration of such assets while evaluating resolution plans, establish stricter procedures for withdrawal of CIRP under Section 12A, and create a dedicated mechanism for direct dissolution during CIRP. Overall, the amendments seek to make CIRP more transparent, efficient, time-bound, and dispute-resilient.
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
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Press Releases No. IBBI/PR/2026/10 | Dated: 4th June, 2026
IBBI notifies the IBBI (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2026 pursuant to the Insolvency and Bankruptcy Code (Amendment) Act, 2026
1. The Insolvency and Bankruptcy Board of India (IBBI/Board) has notified amendments to the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulations) to give effect to the changes brought about by the Insolvency and Bankruptcy Code (Amendment) Act, 2026 (Amendment Act). The amendments seek to improve the availability of information in the corporate insolvency resolution process (CIRP), reduce avoidable disputes, and align the process with the amended provisions of the Code, including the new framework for the treatment of guarantors’ assets.
2. The key highlights of the amendments are as follows:
i. Fuller disclosure at the stage of initiation – operational creditors and corporate applicants are now required to file more complete information with their applications – for operational creditors, GST records and e-way bills (where applicable), and details of part-payments, assignments, guarantees and pending proceedings; and for corporate applicants, key financial and asset-related particulars from their books of account. This enables the resolution professional and the committee of creditors (CoC) to begin the process with a clearer picture of the corporate debtor, supporting faster verification of claims and better-informed decisions.
ii. Better access to information for the resolution professional – the resolution professional has been expressly empowered to call for information from creditors, financial institutions and statutory authorities, and every creditor is required to share the records in its possession relating to the assets and liabilities of the corporate debtor at the first meeting of the CoC. The set of persons obliged to extend cooperation has also been widened in line with the amended Code. These changes equip the professional to conduct the process effectively and without delay.
iii. Time-bound and reasoned communication on claims – the resolution professional must now convey the decision to admit or reject a claim, in whole or in part, along with reasons, to the concerned creditor within seven days. This is expected to minimise friction between stakeholders and reduce the scope for litigation in this regard.
iv. Framework for treatment of guarantors’ assets – consequent to the section 28A of the Code, a structured mechanism has been provided for placing the proposal before the CoC, and dealing with, the transfer of a guarantor’s asset, along with coordination between the professionals handling the corporate debtor and a corporate guarantor that is itself under insolvency. The CoC is required to factor in the value of such assets while considering a resolution plan, so that the interests of all stakeholders, including creditors and guarantors, are adequately safeguarded.
v. Greater discipline in withdrawal of CIRP – where the CoC approves withdrawal of the CIRP under section 12A, the application must be filed within a defined window and be backed by a bank guarantee or demand draft towards process costs, with actual costs to be deposited on approval. This brings certainty and accountability to withdrawals and protects the costs of the process.
vi. Dedicated framework for dissolution during CIRP – self-contained provisions have been introduced enabling the CoC to seek direct dissolution of the corporate debtor during the CIRP within defined timelines, thereby improving overall outcomes.
3. Taken together, the amendments aim to make the CIRP more transparent, time-bound and dispute-resilient, while operationalising the changes introduced by the Amendment Act.
4. The amendment regulations are available on the website of the IBBI at ibbi.gov.in.
