| Regulation | Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. | Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2024. | Comments |
| Reg 2B Compromise or arrangement. Second Proviso | Provided further that where the recommendation to explore proposal of compromise or arrangement has been made by the committee under regulation 39BA of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, the liquidator shall file the proposal within thirty days of the order of liquidation | Provided further that the liquidator shall file the proposal of compromise or arrangement only in cases where such recommendation has been made by the committee under regulation 39BA of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016: Provided further that the liquidator shall not file such proposal after expiry of thirty days from the liquidation commencement date.” | The liquidator shall file the proposal of compromise or arrangement only in cases where the Committee of Creditors made such a recommendation during the CIRP and such proposal shall not be filed after the expiry of thirty days from the liquidation commencement date. |
| Reg 14. Early dissolution. | He may apply to the Adjudicating Authority for early dissolution of the corporate debtor and for necessary directions in respect of such dissolution. | He shall consult the consultation committee and if it advises for early dissolution, he may apply, along with a detailed report incorporating the views of the consultation committee, to the Adjudicating Authority | Prior to applying for early dissolution, the liquidator must seek the SCC’s views and recommendations, providing a detailed report in the application to the Adjudicating Authority (AA) |
| Reg 31A. Stakeholders’ consultation committee. in sub-regulation (1) in sub-regulation (6)new proviso is inserted Sub- regulation 6A is inserted Sub- regulation 6B is inserted In sub-regulation (9) Explanation is inserted | | after clause (e), the following clauses shall be inserted, namely:- “(f) review of marketing strategy in case of failure of sale of corporate debtor as a going concern; (g) continuation or institution of any suits or legal proceedings by or against the corporate debtor; (h) extension of payment of balance sale consideration as provided in clause (12) of Para 1 of Schedule I, beyond ninety days, to be disclosed in the auction notice.” Provided further that the liquidator shall convene subsequent meetings within thirty days of the previous meeting, unless the consultation committee has extended the period between such meetings: Provided further that there shall be at least one meeting in each quarter.” In all cases where the liquidator proposes to continue or initiate any legal proceeding, he shall, after presenting the economic rationale for the proposal, seek the advice of the consultation committee. In every meeting, the liquidator shall present to the consultation committee: (a) the actual liquidation cost along with reasons for exceeding the estimated cost, if any; (b) the consolidated status of all the legal proceedings; and (c) the progress made in the process. Explanation: For the purpose of this sub-regulation, the term „voting‟ shall mean voting cast by the representatives of the consultation committee. | The stakeholder consultation committee should also advise on the following review of marketing strategy in case of failure of sale of corporate debtor as a going concern. continuation or institution of any suits or legal proceedings by or against the corporate debtor extension of payment of balance sale consideration as provided in clause (12) of Para 1 of Schedule I, beyond ninety days, to be disclosed in the auction notice Liquidators are mandated to convene SCC meetings with a maximum interval of 30 days, to ensure timely decisions and oversight. However, the SCC may reduce the frequency of meetings if deemed necessary, provided that at least a minimum of one meeting is held per quarter The liquidator shall seek the advice of consultation in all case where he continue or initiate any legal proceeding, he shall, after presenting the economic rationale for the proposal. The liquidator must disclose the following in consultation meeting (a) the actual liquidation cost along with reasons for exceeding the estimated cost, if any; (b) the consolidated status of all the legal proceedings; and (c) the progress made in the process. the term „voting‟ shall mean voting cast by the representatives of the consultation committee |
| Reg 32A Sale as a going concern in sub-regulation (4) Explanation is inserted after sub-regulation (4) new | | Explanation: For the purpose of this sub-regulation, it is hereby clarified that the sale of the corporate debtor under clause (e) of regulation 32 cannot be offered as the only option for bidders after the first auction Where the liquidator is of the opinion that it is viable to run the corporate debtor as a going concern, he shall consult the consultation committee and only on its advice he shall run the affairs of the corporate debtor as a going concern to the extent approved | The liquidator, upon considering the viability, must consult the SCC before deciding to run the affairs of the corporate debtor as a going concern. Further, the sale of the CD as a going concern cannot be put on an auction exclusively after the first auction, and in case of a failed auction, the liquidator shall review the marketing strategy in consultation with the SCC. |
| Reg 33 Mode of sale. in sub-regulation (2), in sub-regulation (2), in clause (b), in sub-regulation (2), in clause (c), | The liquidator may sell the assets of the corporate debtor by means of private sale in the manner specified in Schedule I when- the asset is likely to deteriorate in value significantly if not sold immediately the asset is sold at a price higher than the reserve price of a failed auction; or | The liquidator may sell the assets of the corporate debtor by means private sale only after prior consultation with the consultation committee under regulation 31A, in the manner specified in Schedule I the asset is likely to deteriorate in value significantly if not sold immediately or the asset is sold at a price higher than the reserve price of a failed auction; or | The liquidator may sell the assets of the corporate debtor by means of private sale only after prior consultation with consultation committee. the word “or”, shall be inserted. clause (c) shall be omitted |
| Reg – 35.Valuation of assets intended to be sold. in sub-regulation (2) after sub-regulation (4) sub regulation (5) is inserted sub regulation (6) is inserted sub regulation (6) is inserted | In cases not covered under sub-regulation (1) or where the liquidator is of the opinion that fresh valuation is required under the circumstances, he shall within seven days] of the liquidation commencement date, appoint two registered valuers to determine the realisable value of the assets or businesses under clauses (a) to (f) of regulation 32 of the corporate debtor | In cases not covered under sub-regulation (1) or where the liquidator after consultation with the consultation committee under regulation 31A, is of the opinion that fresh valuation is required under the circumstances, he shall within seven days] of the liquidation commencement date, appoint two registered valuers to determine the realisable value of the assets or businesses under clauses (a) to (f) of regulation 32 of the corporate debtor. Where valuation is undertaken as per sub-regulation (2), the liquidator shall facilitate a meeting wherein registered valuers shall explain the methodology being adopted to arrive at valuation to the consultation committee before finalisation of valuation reports. The liquidator shall share the valuation reports with the members of the consultation committee after obtaining an undertaking that they shall maintain the confidentiality of such reports and shall not use these reports to cause an undue gain or undue loss to itself or any other person. In case there is deviation of twenty five percent in the valuation of an asset class under sub-regulation (2) from valuation under regulation 35 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, the liquidator shall facilitate a meeting wherein the registered valuers shall explain the reasons for the difference to the consultation committee. | The words, “where the liquidator is of the opinion”, the words, “where the liquidator after consultation with the consultation committee under regulation 31A, is of the opinion”, shall be substituted. For fresh asset valuations, liquidators are required to facilitate meetings where registered valuers explain their methodology and reasons for significant deviations, if any, from the CIRP valuations. Further, the liquidator shall share the valuation reports with the SCC members after obtaining a confidentiality undertaking. In case there is deviation of twenty five percent in the valuation of an asset class the liquidator shall facilitate a meeting wherein the registered valuers shall explain the reasons for the difference to the consultation committee. |
| Reg 46 Corporate Liquidation Account sub-regulation (7) sub-regulation (7A) sub-regulation (7B) sub-regulation (7C) sub-regulation (7D) sub-regulation (7E) | A stakeholder, who claims to be entitled to any amount deposited into the Corporate Liquidation Account, may apply to the Board in Form J for an order for withdrawal of the amount | Prior to dissolution of the corporate person, a stakeholder, who claims to be entitled to any amount deposited into the Corporate Liquidation Account, may apply to the liquidator in Form-I for withdrawal of the amount. On receipt of request under sub-regulation (7), the liquidator after verification of the claim, shall request the Board for release of amount to him for onward distribution. The Board on receipt of request under sub-regulation (7A) may release the amount to the liquidator The liquidator shall, after making the distribution to the stakeholder, shall intimate the Adjudicating Authority of such distribution. After dissolution of the corporate person, a stakeholder, who claims to be entitled to any amount deposited in the Corporate Liquidation Account, may apply to the Board in Form-I for an order for withdrawal of the amount. If any person other than the stakeholder claims to be entitled to any amount deposited to the Corporate Liquidation Account, he shall submit evidence to satisfy the liquidator or the Board, as the case may be, that he is so entitled | A stakeholder who claims to be entitled to any amount deposited into the Corporate Liquidation Account, may apply to the liquidator in Form-I for withdrawal of the amount. The liquidator on the receipt of request after verification of claim shall request the Board for release of amount to him for onward distribution. On receipt of request the Board may release the amount to the liquidator. The liquidator shall, after making the distribution to the stakeholder, shall intimate the Adjudicating Authority of such distribution. The stakeholder after dissolution of the corporate person who claims to be entitled to any amount deposited in the Corporate Liquidation Account, may apply to the Board in Form-I for an order for withdrawal of the amount. The person other than stakeholder claim has to submit the evidence to satisfy the liquidator or the Board as the case may be |
| Reg 46 A Exclusion of certain assets from the liquidation estate. New Reg inserted | | For the purposes of clause (e) of sub-section (4) of section 36, wherever the corporate debtor has given possession to an allottee in a real estate project, such asset shall not form a part of the liquidation estate of the corporate debtor. | Wherever the corporate debtor has given possession to an allottee in a real estate project, such asset shall not form a part of the liquidation estate of the corporate debtor. |
| Schedule I in clause 3, new proviso inserted for clause (4), clause (4A) and clause (4B) clause (12) | The reserve price shall be the value of the asset arrived at in accordance with regulation 35. (4A) Where an auction fails at the reserve price, the liquidator may reduce the reserve price by up to twenty-five percent of such value to conduct subsequent auction. (4B) Where an auction fails at reduced price under clause (4A), the reserve price in subsequent auctions may be further reduced by not more than ten percent at a time. On the close of the auction, the highest bidder shall be invited to provide balance sale consideration within ninety days of the date of such demand: Provided that payments made after thirty days shall attract interest at the rate of 12%: Provided further that the sale shall be cancelled if the payment is not received within ninety days | Provided further that the liquidator shall mention in the auction notice, the period extended under clause (h) of sub-regulation (1) of regulation 31A. The reserve price shall be the value of the asset arrived at in accordance with regulation 35 and where an auction fails, the reserve price in subsequent auctions may be further reduced by not more than ten percent at a time: Provided that in cases where the reserve price of the failed auction of the asset was fixed as per the valuation under sub-regulation (1) of regulation 35, the liquidator may, on the advice of the consultation committee, reduce the reserve price up to twenty-five percent, once during the process On the close of the auction, the highest bidder shall be invited to provide balance sale consideration within ninety days or such period as mentioned in the auction notice under clause 3, of the date of such demand: Provided that payments made after thirty days shall attract interest at the rate of twelve per cent.: Provided further that the sale shall be cancelled if the payment is not received within the period provided under this clause.” | The liquidator may reduce the reserve price by up to 25% for assets with existing valuation of the Corporate Insolvency Resolution Process (CIRP) on one occasion with the approval of the Stakeholders’ Consultation Committee (SCC) at any time during the process. For assets where fresh valuation is conducted during liquidation, the reserve price can be reduced by up to 10% in subsequent auctions with SCC’s approval. The liquidator may extend the payment period of balance sale consideration beyond ninety days, after consultation with the SCC |
| Schedule I, in para 2, after clause (3) | | The private sale shall be confirmed to the buyer after consultation with the consultation committee under regulation 33.” | |
| Schedule II | | Form A shall be substituted | The Form A for reporting consultation with the stakeholders has been modified to capture the meetings details such as the interval between two meetings, dissent by the SCC. |
