Please find the following update under IBBI
| Regulations | Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. | Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Amendment) Regulations, 2026 | Comments |
| Regulation 2, for clause (hb) | “fair value” means the estimated realizable value of the assets of the corporate debtor, if they were to be exchanged on the insolvency commencement date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had acted knowledgeably, prudently and without compulsion | “fair value” means the estimated realizable value of the corporate debtor or the assets of the corporate debtor, as the case may be, if they were to be exchanged on the insolvency commencement date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing, and where the parties had acted knowledgeably, prudently, and without compulsion. Explanation.- The estimated realizable value of the corporate debtor shall be computed after taking into account the total estimated realizable value of all the assets of the corporate debtor including but not limited to tangible and intangible assets, along-with their underlying synergies.” | Fair value now means the estimated realizable value of the corporate debtor as a whole or its assets on the insolvency commencement date, determined on an arm’s length basis after proper marketing and expressly including all tangible and intangible assets along with their underlying synergies. |
| Regulation 27, Appointment of Professional sub-regulation (1) | The resolution professional shall, within seven days of his appointment but not later than forty-seventh day from the insolvency commencement date, appoint two registered valuers to determine the fair value and the liquidation value of the corporate debtor in accordance with regulation 35. | The resolution professional shall, within seven days of his appointment but not later than forty seventh day from the insolvency commencement date, appoint two sets of registered valuers to determine the fair value and the liquidation value in accordance with regulation 35. | The resolution professional must appoint two sets of registered valuers within seven days of appointment, but no later than the forty seventh day from the insolvency commencement date, to determine fair value and liquidation value under Regulation 35. |
| Regulation 35 Fair value and Liquidation value, for sub-regulation (1) | (1) Fair value and liquidation value shall be determined in the following manner:- (a) the two registered valuers appointed under regulation 27 shall submit to the resolution professional an estimate of the fair value and of the liquidation value computed in accordance with internationally accepted valuation standards, after physical verification of the inventory and fixed assets of the corporate debtor; 101[Provided that the resolution professional shall facilitate a meeting wherein registered valuers shall explain the methodology being adopted to arrive at valuation to the members of the committee before computation of estimates.] 102[(b) if the two estimates of a value in an asset class are significantly different, or on receipt of a proposal to appoint a third registered valuer from the committee of creditors, the resolution professional may appoint a third registered valuer for an asset class for submitting an estimate of the value computed in the manner provided in clause (a). Explanation.- For the purpose of clause (b), (i) “asset class” means the definition provided under the Companies (Registered Valuers and Valuation) Rules, 2017; (ii) “significantly different” means a difference of twenty-five per cent. in liquidation value under an asset class and the same shall be calculated as (L1-L2)/L1, where, L1= higher valuation of liquidation value L2= lower valuation of liquidation value.] (c) the average of the two closest estimates of a value shall be considered the fair value or the liquidation value, as the case may be. | “(1) Fair value and liquidation value shall be determined in the following manner, namely (a) the set of registered valuers appointed under regulation 27 shall comprise of one registered valuer for each asset class of the corporate debtor and within each set, one registered valuer shall be designated as the coordinating valuer for that set by the resolution professional, in consultation with the committee, for computation of the fair value of the corporate debtor; Explanation- For the purpose of clause (a),“asset class” means the definition provided under the Companies (Registered Valuers and Valuation) Rules, 2017; (b) the resolution professional shall facilitate a meeting wherein the registered valuers, including coordinating valuers, shall explain the methodology being adopted to arrive at the valuation, to the members of the committee, before computation of estimates; (c) each registered valuer shall, after physical verification of the inventory and fixed assets of the corporate debtor, submit to the resolution professional and the coordinating valuer of their respective set, a report on the fair value of the assets of the corporate debtor and the liquidation value, computed in accordance with such valuation standards as notified by the Board through circular; (d) the coordinating valuer of a set shall compute the fair value of the corporate debtor after considering the fair value of the assets as computed by the registered valuers within that set, along with their underlying synergies, and submit the same to the resolution professional; (e) the resolution professional may appoint a third set of registered valuers for submitting an estimate of the fair value and the liquidation value, computed in the manner provided under this regulation, where: (i) the two estimates of fair value of the corporate debtor or liquidation value are significantly different, or (ii) the committee proposes to appoint a third set of registered valuers for reasons to be recorded in writing; Explanation- For the purpose of clause (e), “significantly different” means a difference of twenty-five per cent or more in the fair value of the corporate debtor submitted by the coordinating valuer or the liquidation value, as the case may be. (f) the average of the two closest estimates of the fair value submitted by the coordinating valuers shall be considered as the fair value of the corporate debtor; and (g) the average of the two closest estimates of the liquidation value submitted by registered valuers in each asset class shall be considered as the liquidation value of the corporate debtor.” | Each valuation set must include one registered valuer per asset class with a designated coordinating valuer, valuers must explain their methodology to the CoC and conduct physical verification before submitting reports, the coordinating valuer computes enterprise fair value including synergies, a third set may be appointed if estimates differ by 25% or more (or if the CoC so decides), and the final fair and liquidation values are taken as the average of the two closest estimates. |
| Regulation 35, after sub-regulation (1) | A registered valuer shall prepare the valuation report and maintain such documentation as per the format notified by the Board through circular | A registered valuer must prepare the valuation report and maintain documentation in the format prescribed by the Board through a circular. | |
| Regulation 36 Information memorandum sub-regulation (2) after clause (a) after clause (j) | (aa) Details of receivables of the corporate debtor, including trade receivables, inter-corporate receivables, and receivables arising under any contract; (ab) Details of joint development agreements and other similar collaboration or co-development arrangements, including rights, obligations, and interests of the corporate debtor arising thereunder; (ac) Details of assets which are under attachment by enforcement agencies, including particulars of the assets attached, the authority which has attached and the status of such proceedings;” (ja) details of all allottees, including their names, amounts due, and units allotted, whose claims are either reflecting in the books of accounts of the corporate debtor or in the records of the Real Estate Regulatory Authority as established under the Real Estate (Regulation and Development) Act, 2016 (16 of 2016), but have not submitted their claims to the resolution professional; | The Information Memorandum must now include details of receivables (including trade, inter-corporate and contractual), joint development or similar collaboration arrangements with related rights and obligations, and assets under attachment by enforcement authorities along with the status of such proceedings. The Information Memorandum must include details of all allottees such as their names, amounts due, and units allotted whose claims appear in the company’s books or RERA records but have not been filed with the resolution professional. | |
| Reg – 38A. Treatment of allottees not filing claims. | In respect of a real estate project, where the information memorandum includes the details of the allottees who have not submitted their claims, the resolution plan shall provide for treatment of such allottees.” | In a real estate project, if the Information Memorandum lists allottees who have not filed claims, the resolution plan must specifically provide for their treatment. |
Link – https://ibbi.gov.in/uploads/legalframwork/aeaf693831067a28f26e32dcf22d8cb6.pdf
