Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fourth Amendment) Regulations, 2025: The Insolvency and Bankruptcy Board of India (IBBI) has issued the Fourth Amendment to the Insolvency Resolution Process for Corporate Persons Regulations, 2016, effective from May 26, 2025. These changes introduce new provisions and modify existing rules under the Insolvency and Bankruptcy Code, 2016.
A key change is the addition to Regulation 18, allowing the committee of creditors to invite interim finance providers as observers to specific meetings, though without voting rights. Regulation 36A has also been updated, enabling the resolution professional, with committee approval, to seek expressions of interest not only for resolution plans for the entire corporate debtor but also for individual asset sales or both.
Regulation 36B sees the removal of sub-regulation 6A. In Regulation 38, a new proviso ensures that if payments in a resolution plan are staggered, financial creditors who did not support the plan must receive payments pro rata and with priority at each stage, over those who voted in favor.
Amendments to Regulation 39 refine the treatment and presentation of resolution plans. Specifically, references to compliance requirements are adjusted, and the inclusion of details on non-compliant plans is mandated.
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 the 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.
