Insolvency and Bankruptcy Board of India (IBBI) has issued a notification amending the 2019 regulations governing the insolvency resolution process for personal guarantors to corporate debtors. Titled the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) (Amendment) Regulations, 2025, the amendment came into effect on its publication date in the Official Gazette, 19th May 2025. The amendment introduces a new regulation—Regulation 17B—which addresses scenarios where no repayment plan is submitted under Section 105 of the Insolvency and Bankruptcy Code, 2016. In such cases, the resolution professional, with creditor approval, is now required to approach the Adjudicating Authority to report the absence of a repayment plan and seek suitable directions. This addition aims to ensure procedural clarity in instances of non-compliance or inaction by the debtor during the insolvency resolution process. The original 2019 regulations were notified on 20th November 2019 and were most recently amended on 31st January 2024.
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
NOTIFICATION
New Delhi, the 19th May, 2025
Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) (Amendment) Regulations, 2025.
No. IBBI/2025-26/GN/REG125.— In exercise of the powers conferred by clause (t) of sub-section (1) of section 196, section 240 read with clause (e) of section 2 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 Personal Guarantors to Corporate Debtors) Regulations, 2019, namely:-
1. (1) These regulations may be called the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) (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 Personal Guarantors to Corporate Debtors) Regulations, 2019, after regulation 17A, the following regulation shall be inserted, namely: –
“17B. Non-submission of repayment plan
Where no repayment plan has been prepared by the debtor under section 105 of the Code, the resolution professional shall file an application, with the approval of creditors, before the Adjudicating Authority intimating the non-submission of a repayment plan and seek appropriate directions.”
RAVI MITAL, Chairperson
[ADVT.-III/4/Exty./107/2025-26]
Note: The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019 were published vide notification No. IBBI/2019-20/GN/REG050, dated 20th November, 2019 in the Gazette of India, Extraordinary, Part III, Section 4, No. 413 on 20th November, 2019 and were last amended by the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) (Amendment) Regulations, 2024 published vide notification No. IBBI/2023-24/GN/REG107, dated the 31st January, 2024 in the Gazette of India, Extraordinary, Part III, Section 4, No. 71 on 31st January, 2024.
