Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016
30th November, 2016
(Updated in 2025) (As Amended by Noti. No., F. No. IBBI/2025-26/GN/REG130., dt. 14/10/2025 - Amendments in 39C, Regulation 39D(a), Regulation 39D(b) and Form H Noti. No. F. No. IBBI/2025-26/GN/REG128., dt. 04/07/2025 - Amendments in Regulation 36(1), Regulation 36(2), Regulation 38(2A) Noti. No. F. No. IBBI/2025-26/GN/REG127, dt. 26/05/2025 - Amendments in Regulation 18(5), Regulation 36A(1A), Regulation 36B(6A), Regulation 38(1)(b), Regulation 39(2), Regulation 39(3)(a) Noti. No. IBBI/2025-26/GN/REG126., dt. 19/05/2025 - Amendment in Regulation 40B Noti. No. F. No. IBBI/2025-26/GN/REG124. 03/04/2025 - Amendment in Schedule-I Form H Noti. No. F.No. IBBI/2024-25/GN/REG122, dt. 03/02/2025 - Amendments in Regulation 4E, Regulation 16C, Regulation 16D, Regulation 18(4), Regulation 30C, Regulation 31(ac), Regulation 36A(4), Regulation 36A(4)(e), Regulation 36B(4A), Regulation 38(4), Schedule-I Form G No. IBBI/2024-25/GN/REG116. dt. 24/09/20
Read full ActFor the purposes of clause (a) of sub-section (3) of Section 7 of the Code, the financial creditor may furnish any of the following record or evidence of default, namely--
(a) certified copy of entries in the relevant account in the bankers book as defined in clause (3) of Section 2 of the Bankers Books Evidence Act, 1891 (18 of 1891);
(b) an order of a court or tribunal that has adjudicated upon the non-payment of a debt, where the period of appeal against such order has expired.]
The operational creditor shall, alongwith application under Section 9, furnish copies of relevant extracts of Form GSTR-1 and Form GSTR-3B filed under the provisions of the relevant laws relating to Goods and Services Tax and the copy of e-way bill wherever applicable:
Provided that provisions of this regulation shall not apply to those operational creditors who do not require registration and to those goods and services which are not covered under any law relating to Goods and Services Tax.
The financial creditor or operational creditor shall, while filing application under Section 7 or 9, as the case may be, also furnish details of his/its--
(a) Permanent Account Number; and
(b) E-mail-ID.]
While filing an application under Section 7 or 9, the financial creditor or the operational creditor, as the case may be, shall also submit along with evidence, chronology of the debt and default including the date when the debt became due, date of default, dates of part payments, if any, date of last acknowledgment of debt and the limitation applicable.]
(1) An insolvency professional shall be eligible to be appointed as 1[an interim resolution professional or a resolution professional, as the case may be,] for a corporate insolvency resolution process of a corporate debtor if he, and all partners and directors of the insolvency professional entity of which he is a partner or director, are independent of the corporate debtor.
Explanation.-- A person shall be considered independent of the corporate debtor, if he:
(a) is eligible to be appointed as an independent director on the board of the corporate debtor under Section 149 of the Companies Act, 2013 (18 of 2013), where the corporate debtor is a company;
(b) is not a related party of the corporate debtor; or
(c) is not an employee or proprietor or a partner:
(i) of a firm of auditors or 2[secretarial auditors] in practice or cost auditors of the corporate debtor; or (ii) of a legal or a consulting firm, that has or had
(1) The interim resolution professional or resolution professional, as the case may be, shall take custody and control as specified under this regulation from the personnel of the corporate debtor, its promoters or any other person associated with the management of the corporate debtor as the case may be, of the following--
(a) the records of information relating to the assets, finances and operations of the corporate debtor referred in clause (a) of Section 18 and such other information required under Regulation 36;
(b) the assets recorded in the balance sheet of the corporate debtor or in any other records referred in clause (f) of Section 18.
(2) The personnel of the corporate debtor, its promoters or any other person associated with the management of the corporate debtor shall provide to the interim resolution professional or resolution professional, as the case may be, a list of assets and records while handing over their custody and control, and the inter
(1) Without prejudice to Section 17(2)(d), the 1[interim resolution professional or the resolution professional, as the case may be,] may access the books of account, records and other relevant documents and information, to the extent relevant for discharging his duties under the Code, of the corporate debtor held with--
(a) depositories of securities;
(b) professional advisors of the corporate debtor;
(c) information utilities;
(d) other registries that records the ownership of assets;
(e) members, promoters, partners, board of directors and joint venture partners of the corporate debtor; and
(f) contractual counterparties of the corporate debtor.
2[(2) The personnel of the corporate debtor, its promoters or any other person associated with the management of the corporate debtor shall provide the information within such time and in such format as sought by the interim resolution professional or the resolution p
(1) On an examination of books of account and other relevant records of the corporate debtor, the interim resolution professional shall ascertain class(s) of creditors, if any.
(2) For representation of creditors in a class ascertained under sub-regulation (1) in the committee, the interim resolution professional shall identify three insolvency professionals who are--
(a) not his relatives or related parties;
2[(aa) having their addresses, as registered with the Board, in the State or Union Territory, as the case may be, which has the highest number of creditors in the class as per their addresses in the records of the corporate debtor:
Provided that where such State or Union Territory does not have adequate number of insolvency professionals, the insolvency professionals having addresses in a nearby State or Union Territory, as the case may be, shall be considered;]
(b) eligible to be 3[resolution professional] under Regulat
Where a corporate debtor has changed its name or registered office address during the period of two years preceding the insolvency commencement date, the interim resolution professional or resolution professional, as the case may be, shall disclose all the former name(s) and registered office address(es) so changed along with the current name and registered office address in every communication, record, proceeding or any other document.]
(1) The interim resolution professional shall open an e-mail account and use it for all correspondences with stakeholders and in the event of his replacement by a resolution professional, shall handover the credentials of the e-mail to him.
(2) The resolution professional shall, in case of his replacement with another resolution professional or a liquidator, hand over the credentials of the e-mail to the other resolution professional or the liquidator, as the case may be.]
Where the corporate debtor has any real estate project, the interim resolution professional or the resolution professional, as the case may be, shall operate a separate bank account for each real estate project.]
After obtaining the approval of the committee with not less than sixty-six percent of total votes, the resolution professional shall hand over the possession of the plot, apartment, or building or any instruments agreed to be transferred under the real estate project and facilitate registration, where the allottee has requested for the same and has performed his part under the agreement.]
A transaction shall be considered extortionate under Section 50(2) where the terms:
(1) require the corporate debtor to make exorbitant payments in respect of the credit provided; or
(2) are unconscionable under the principles of law relating to contracts.
(1) An insolvency professional shall make a public announcement immediately on his appointment as an interim resolution professional.
Explanation.-- 'Immediately' means not later than three days from the date of his appointment.
(2) The public announcement referred to in sub-regulation (1) shall:
(a) be in Form A of the 1[Schedule-I];
(b) be published --
(i) in one English and one regional language newspaper with wide circulation at the location of the registered office and principal office, if any, of the corporate debtor and any other location where in the opinion of the interim resolution professional, the corporate debtor conducts material business operations;
(ii) on the website, if any, of the corporate debtor; and
(iii) on the website, if any, designated by the Board for the purpose,
2[(ba) state where claim forms can be downloaded or obtained from, as the case may be;
(bb) offer cho
The interim resolution professional shall send a communication along with a copy of public announcement made under Regulation 6, to all the creditors as per the last available books of accounts of the corporate debtor through post or electronic means wherever the information for communication is available:
Provided that where it is not possible to send a communication to creditors, the public announcement made under Regulation 6 shall be deemed to be the communicated to such creditors.]
(1) A person claiming to be an operational creditor, other than workman or employee of the corporate debtor, shall 1[submit claim with proof] to the interim resolution professional in person, by post or by electronic means in Form B of the 2[Schedule-I]:
Provided that such person may submit supplementary documents or clarifications in support of the claim before the constitution of the committee.
(2) The existence of debt due to the operational creditor under this regulation may be proved on the basis of--
(a) the records available with an information utility, if any; or
(b) other relevant documents, including--
(i) a contract for the supply of goods and services with corporate debtor;
(ii) an invoice demanding payment for the goods and services supplied to the corporate debtor;
(iii) an order of a court or tribunal that has adjudicated upon the non-payment of a debt, if any; or (iv) financial accounts.
(1) A person claiming to be a 1[financial creditor, other than a financial creditor belonging to a class of creditors, shall submit claim with proof] to the interim resolution professional in electronic form in Form C of the
2[Schedule-I]:
Provided that such person may submit supplementary documents or clarifications in support of the claim before the constitution of the committee.
(2) The existence of debt due to the financial creditor may be proved on the basis of--
(a) the records available with an information utility, if any; or
(b) other relevant documents, including--
(i) a financial contract supported by financial statements as evidence of the debt;
(ii) a record evidencing that the amounts committed by the financial creditor to the corporate debtor under a facility has been drawn by the corporate debtor;
(iii) financial statements showing that the debt has not been 3[paid]; or
(iv
(1) A person claiming to be a creditor in a class shall submit claim with proof to the interim resolution professional in electronic form in Form CA of the 2[Schedule-I].
(2) The existence of debt due to a creditor in a class may be proved on the basis of--
(a) the records available with an information utility, if any; or
(b) other relevant documents, including any--
(i) agreement for sale;
(ii) letter of allotment;
(iii) receipt of payment made; or
(iv) such other document, evidencing existence of debt.
(3) A creditor in a class may indicate its choice of an insolvency professional, from amongst the three choices provided by the interim resolution professional in the public announcement, to act as its authorised representative.]
(1) A person claiming to be a workman or an employee of the corporate debtor shall submit 1[claim with proof] to the interim resolution professional in person, by post or by electronic means in Form D of the 2[Schedule-I]:
Provided that such person may submit supplementary documents or clarifications in support of the claim, on his own or if required by the interim resolution professional, before the constitution of the committee.
(2) Where there are dues to numerous workmen or employees of the corporate debtor, an authorised representative may submit one 3[claim with proof] for all such dues on their behalf in Form E of the 4[Schedule-I].
(3) The existence of dues to workmen or employees may be proved by them, individually or collectively on the basis of--
(a) records available with an information utility, if any; or
(b) other relevant documents, including--
(i) a proof of employment such as con
(1) A person claiming to be a creditor, other than those covered under 2[Regulations 7, 8, 8-A or 9,] shall submit 3[its claim with proof] to the interim resolution professional or resolution professional in person, by post or by electronic means in Form F of the 4[Schedule-I].
(2) The existence of the claim of the creditor referred to in sub-section (1) may be proved on the basis of--
(a) the records available in an information utility, if any, or
(b) other relevant documents sufficient to establish the claim, including any or all of the following--
(i) documentary evidence demanding satisfaction of the claim;
(ii) bank statements of the creditor showing non-satisfaction of claim;
(iii) an order of court or tribunal that has adjudicated upon non-satisfaction of claim, if any.]
The interim resolution professional or the resolution professional, as the case may be, may call for such other evidence or clarification as he deems fit from a creditor for substantiating the whole or part of its claim.
A creditor shall bear the cost of proving the debt due to such creditor.
1[(1) A creditor shall submit claim with proof on or before the last date mentioned in the public announcement:
Provided that a creditor, who fails to submit claim with proof within the time stipulated in the public announcement, may submit his claim with proof to the interim resolution professional or the resolution professional, as the case may be, up to the date of issue of request for resolution plans under Regulation 36-B or ninety days from the insolvency commencement date, whichever is later:
Provided further that the creditor shall provide reasons for delay in submitting the claim beyond the period of ninety days from the insolvency commencement date.]
(2) 2[x x x x]
(3) Where the creditor in 4[sub-regulation (1)] is 3[a financial creditor under Regulation 8], it shall be included in the committee from the date of admission of such claim:
Provided that such inclusion shall not affect the validity
A creditor shall update its claim as and when the claim is satisfied, partly or fully, from any source in any manner, after the insolvency commencement date.]
(1) The interim resolution professional or the resolution professional, as the case may be, shall verify every claim, as on the insolvency commencement date, within seven days from the last date of the receipt of the claims, and thereupon maintain a list of creditors containing names of creditors along with the amount claimed by them, the amount of their claims admitted and the security interest, if any, in respect of such claims, and update it.
1[(1-A) Where the interim resolution professional or the resolution professional, as the case may be, does not collate the claim after verification, he shall provide reasons for the same.]
2[(1-B) In the event that claims are received after the period specified under sub-regulation (1) of Regulation 12 and up to seven days before the date of meeting of creditors for voting on the resolution plan or the initiation of liquidation, as the case may be, the interim resolution professional or resolution professi
(1) Where the amount claimed by a creditor is not precise due to any contingency or other reason, the interim resolution professional or the resolution professional, as the case may be, shall make the best estimate of the amount of the claim based on the information available with him.
(2) The interim resolution professional or the resolution professional, as the case may be, shall revise the amounts of claims admitted, including the estimates of claims made under sub-regulation (1), as soon as may be practicable, when he comes across additional information warranting such revision.
The claims denominated in foreign currency shall be valued in Indian currency at the official exchange rate as on the insolvency commencement date.
Explanation.-- "official exchange rate" is the reference rate published by the Reserve Bank of India or derived from such reference rates.
(1) Where the corporate debtor has no financial debt or where all financial creditors are related parties of the corporate debtor, the committee shall be set up in accordance with this regulation.
(2) The committee formed under this Regulation shall consist of members as under--
(a) eighteen largest operational creditors by value:
Provided that if the number of operational creditors is less than eighteen, the committee shall include all such operational creditors;
(b) one representative elected by all workmen other than those workmen included under sub-clause (a); and
(c) one representative elected by all employees other than those employees included under sub-clause (a).
(3) A member of the committee formed under this Regulation shall have voting rights in proportion of the debt due to such creditor or debt represented by such representative, as the case may be, to the total debt.
Explanation.-- For the purposes of this sub-
(1) The interim resolution professional shall select the insolvency professional, who is the choice of the highest number of financial creditors in the class in Form CA received under sub-regulation (1) of Regulation 12, to act as the authorised representative of the creditors of the respective class:
10[Provided that the choice of an insolvency professional to act as an authorised representative by a financial creditor in a class in Form CA shall not be considered, if the Form CA is received after the time stipulated in the public announcement.]
(2) The interim resolution professional shall apply to the Adjudicating Authority for appointment of the authorised representatives selected under sub-regulation (1) within two days of the verification of claims received under sub-regulation (1) of 11[regulation 12:]
12[Provided that till the application for appointment of the authorised representative for a class of creditors is u
Where the corporate debtor has only creditors in a class and no other financial creditor eligible to join the committee, the committee shall consist of only the authorised representative(s).]
(1) Where the number of creditors in a class exceeds one thousand, the committee may, direct the interim resolution professional or resolution professional, as the case may be, to appoint an insolvency professional other than the interim resolution professional, resolution professional and authorised representative, or any other person, as facilitator for a sub-class within the creditors in a class, subject to the following conditions :--
(a) the appointment of facilitator shall be considered only if, after the first meeting of the committee, a sub-class comprising of at least one hundred creditors out of the total number of creditors in a class, request for the inclusion of an agenda for such appointment along with the name of the proposed facilitator;
(b) the total number of facilitators shall not exceed five; and
(c) the fee for facilitator for each sub-class shall be twenty per cent. of the fees specified for the authorised representative and such fee shall
The roles and responsibilities of the facilitator(s) shall include the following:--
(a) facilitating communication between the authorised representative and the creditors of the sub-class;
(b) attending the meetings of the committee, as observers, to facilitate communication between creditors of the respective sub-class;
(c) providing information and clarifications to the creditors in a sub-class about the insolvency resolution process, as per advice of the authorised representative; and
(d) any other tasks assigned by the committee to improve representation and communication.]
(1) The interim resolution professional shall file a report certifying constitution of the committee to the Adjudicating Authority within two days of the verification of claims received under sub-regulation (1) of Regulation 12.
2[(1-A) The committee and members of the committee shall discharge functions and exercise powers under the Code and these regulations in respect of corporate insolvency resolution process in compliance with the guidelines as may be issued by the Board.]
(2) The interim resolution professional shall hold the first meeting of the committee within seven days of filing the report under this regulation.
(3) Where the appointment of resolution professional is delayed, the interim resolution professional shall perform the functions of the resolution professional from the fortieth day of the insolvency commencement date till a resolution professional is appointed under Section 22.]
2[(1) A resolution professional shall convene a meeting of the committee before lapse of thirty days from the last meeting:
Provided that the committee may decide to extend the interval between such meetings subject to the condition that there shall be at least one meeting in each quarter.]
(2) A resolution professional may convene a meeting, if he considers it necessary, on a request received from members of the committee and shall convene a meeting if the same is made by members of the committee representing at least thirty three per cent of the voting rights:
3[Explanation: For the purposes of sub-regulation (2) it is clarified that meeting(s) may be convened under this sub-regulation till the resolution plan is approved under sub-section (1) of Section 31 or order for liquidation is passed under Section 33 and decide on matters which do not affect the resolution plan submitted before the Adjudicating Authority.]
(3) A res
(1) Subject to this Regulation, a meeting of the committee shall be called by giving not less than five days' notice in writing to every participant, at the address it has provided to 2[the interim resolution professional or the resolution professional, as the case may be,] and such notice may be sent by hand delivery, or by post but in any event, be served on every participant by electronic means in accordance with Regulation 20.
(2) The committee may reduce the notice period from five days to such other period of not less than twenty-four hours, as it deems fit:
Provided that the committee may reduce the period to such other period of not less than forty-eight hours if there is any authorised representative.]
(1) A notice by electronic means may be sent to the participants through e-mail as a text or as an attachment to e-mail or as a notification providing electronic link or Uniform Resource Locator for accessing such notice.
(2) The subject line in e-mail shall state the name of the corporate debtor, the place, if any, the time and the date on which the meeting is Scheduled.
(3) If notice is sent in the form of a non-editable attachment to an e-mail, such attachment shall be in the Portable Document Format or in a non-editable format together with a 'link or instructions' for recipient for downloading relevant version of the software.
(4) When notice or notifications of availability of notice are sent by an email, the resolution professional shall ensure that it uses a system which produces confirmation of the total number of recipients e-mailed and a record of each recipient to whom the notice has been sent and copy of such record and any notices of any failed tra
(1) The notice shall inform the participants of the venue, the time and date of the meeting and of the option available to them to participate through video conferencing or other audio and visual means, and shall also provide all the necessary information to enable participation through video conferencing or other audio and visual means.
(2) The notice of the meeting shall provide that a participant may attend and vote in the meeting either in person or through an authorised representative:
Provided that such participant shall inform the resolution professional, in advance of the meeting, of the identity of the authorised representative who will attend and vote at the meeting on its behalf.
1[(3) The notice of the meeting shall contain the following--
(i) a list of the matters to be discussed at the meeting;
(ii) a list of the issues to be voted upon at the meeting; and (iii) copies of all documents relevant to the matters to be discuss
(1) A meeting of the committee shall be quorate if members of the committee representing at least thirty three per cent of the voting rights are present either in person or by video conferencing or other audio and visual means:
Provided that the committee may modify the percentage of voting rights required for quorum in respect of any future meetings of the committee.
(2) Where a meeting of the committee could not be held for want of quorum, unless the committee has previously decided otherwise, the meeting shall automatically stand adjourned at the same time and place on the next day.
(3) In the event a meeting of the committee is adjourned in accordance with sub-regulation (2), the adjourned meeting shall be quorate with the members of the committee attending the meeting.
(1) The notice convening the meetings of the committee shall provide the participants an option to attend the meeting through video conferencing or other audio and visual means in accordance with this regulation.
(2) The resolution professional shall make necessary arrangements to ensure uninterrupted and clear video or audio and visual connection.
(3) The resolution professional shall take due and reasonable care--
(a) to safeguard the integrity of the meeting by ensuring sufficient security and identification procedures;
(b) to ensure availability of proper video conferencing or other audio and visual equipment or facilities for providing transmission of the communications for effective participation of the participants at the meeting;
(c) to record proceedings and prepare the minutes of the meeting;
(d) to store for safekeeping and marking the physical recording(s) or other electronic recording mechanism as part of the records of the cor
(1) The resolution professional shall act as the chairperson of the meeting of the committee.
(2) At the commencement of a meeting, the resolution professional shall take a roll call when every participant attending through video conferencing or other audio and visual means shall state, for the record, the following,--
(a) his name;
(b) whether he is attending in the capacity of a member of the committee or any other participant;
(c) whether he is representing a member or group of members;
(d) the location from where he is participating;
(e) that he has received the agenda and all the relevant material for the meeting; and
(f) that no one other than him is attending or has access to the proceedings of the meeting at the location of that person.
(3) After the roll call, the resolution professional shall inform the participants of the names of all persons who are present for the meeting and confirm if the required quorum is comp
(1) The actions listed in Section 28(1) shall be considered in meetings of the committee.
(2) Any action other than those listed in Section 28(1) requiring approval of the committee may be considered in meetings of the committee.
1[(3) The resolution professional shall take a vote of the members of the committee present in the meeting, on any item listed for voting after discussion on the same.]
(4) At the conclusion of a vote at the meeting, the resolution professional shall announce the decision taken on items along with the names of the members of the committee who voted for or against the decision, or abstained from voting.
2[(5) The resolution professional shall--
(a) circulate the minutes of the meeting by electronic means to all members of the committee and the authorised representative, if any, within forty-eight hours of the conclusion of the meeting; and
3[(b) seek a vote of the members who did not
The authorised representative shall cast his vote in respect of each financial creditor or on behalf of all financial creditors he represents in accordance with the provisions of sub-section (3) or sub-section (3-A) of Section 25-A, as the case may be.]
(1) The resolution professional shall provide each member of the committee the means to exercise its vote by either electronic means or through electronic voting system in accordance with the provisions of this regulation.
Explanation.-- For the purposes of these regulations--
(a) the expressions "voting by electronic means" or "electronic voting system" means a "secured system" based process of display of electronic ballots, recording of votes of the members of the committee and the number of votes polled in favour or against, such that the voting exercised by way of electronic means gets registered and counted in an electronic registry in a centralised server with adequate cyber security;
(b) the expression "secured system" means computer hardware, software, and procedure that--
(i) are reasonably secure from unauthorised access and misuse;
(ii) provide a reasonable level of reliability and correct operation; (iii) are reasonably suited
(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.
(2) The interim resolution professional or the resolution professional, as the case may be, may appoint any professional, in addition to registered valuers under sub-regulation (1), to assist him in discharge of his duties in conduct of the corporate insolvency resolution process, if he is of the opinion that the services of such professional are required and such services are not available with the corporate debtor.
(3) The interim resolution professional or the resolution professional, as the case may be, shall appoint a professional under this regulation on an arm's length basis following an objective and transparent process: Provided that the following persons shall not be ap
1[(1) In the event a creditor assigns or transfers the debt due to such creditor to any other person during the insolvency resolution process period, both parties shall, within seven days of such assignment or transfer, provide the interim resolution professional or the resolution professional, as the case may be, the terms of such assignment or transfer and the identity of the assignee or transferee.]
(2) The resolution professional shall notify each participant and the Adjudicating Authority of any resultant change in the committee within two days of such change.
(1) The resolution professional may sell unencumbered asset(s) of the corporate debtor, other than in the ordinary course of business, if he is of the opinion that such a sale is necessary for a better realisation of value under the facts and circumstances of the case:
Provided that the book value of all assets sold during corporate insolvency resolution process period in aggregate under this sub-regulation shall not exceed ten per cent of the total claims admitted by the interim resolution professional.
(2) A sale of assets under this regulation shall require the 1[approval of the committee by a vote of sixty-six per cent of voting share of the members].
(3) A bona fide purchaser of assets sold under this Regulation shall have a free and marketable title to such assets notwithstanding the terms of the constitutional documents of the corporate debtor, shareholders' agreement, joint venture agreement or other document of a similar nature.
The interim resolution professional or the resolution professional, as the case may be, may make an application to the Adjudicating Authority for an order seeking the assistance of the local district administration in discharging his duties under the Code or these regulations.
(1) An application for withdrawal under Section 12-A may be made to the Adjudicating Authority--
(a) before the constitution of the committee, by the applicant through the interim resolution professional;
(b) after the constitution of the committee, by the applicant through the interim resolution professional or the resolution professional, as the case may be:
Provided that where the application is made under clause (b) after the issue of invitation for expression of interest under Regulation 36-A, the applicant shall state the reasons justifying withdrawal after issue of such invitation.
(2) The application under sub-regulation (1) shall be made in Form FA of the 2[Schedule-I] accompanied by a bank guarantee--
(a) towards estimated expenses incurred on or by the interim resolution professional for purposes of Regulation 33, till the date of filing of the application under clause (a) of sub-regulation (1); or
(b) towards estimat
(1) Any member(s) of the committee may propose an audit of the corporate debtor along with the objectives, scope, estimate of the costs, timeframe and name(s) of the proposed auditor(s).
(2) A proposal made under sub-regulation (1) shall be considered as per sub-regulation (3) of Regulation 18 and an audit shall be conducted if such proposal is approved by the committee.
(3) The audit shall be conducted by an insolvency professional having qualifications required for such audit.
(4) The auditor shall prepare a report detailing his findings and the same shall be presented before the committee along with the comments of the interim resolution professional or the resolution professional, as the case may be.
(5) The expenses of such audit shall be treated as insolvency resolution process costs.]
Where the corporate debtor has any real estate project, the resolution professional shall:
(a) prepare a report detailing the status of development rights and permissions required for development of such project;
(b) submit the report to the committee for its comments; and
(c) submit to the Adjudicating Authority, the report referred to in clause (a) along with the comments of the committee referred to in clause (b), on or before the sixtieth day from the insolvency commencement date.]
"Insolvency resolution process costs" under Section 5(13)(e) shall mean--
(a) amounts due to suppliers of essential goods and services under Regulation 32;
1[(aa) fee payable to authorised representative under 2[sub-regulation (8)] of Regulation 16-A;
(ab) out of pocket expenses of authorised representative for discharge of his functions under 3[Section 25-A];]
5[(ac) fee payable to facilitator under clause (c) of sub-regulation (1) of regulation 16C.]
(b) amounts due to a person whose rights are prejudicially affected on account of the moratorium imposed under Section 14(1)(d);
4[(ba) fee payable to the Board under Regulation 31-A;]
(c) expenses incurred on or by the interim resolution professional to the extent ratified under Regulation 33;
(d) expenses incurred on or by the resolution professional fixed under Regulation 34; and
(e) other costs directly relating t
(1) A regulatory fee calculated at the rate of 0.25 per cent of the realisable value to creditors under the resolution plan approved under Section 31, shall be payable to the Board, where such realisable value is more than the liquidation value:
Provided that this sub-regulation shall be applicable where resolution plan is approved under Section 31, on or after 1st October, 2022.
2[Explanation.-- For removal of doubts, it is hereby clarified that the regulatory fee under this sub-regulation, shall not be payable in cases where the approved resolution plan in respect of insolvency resolution of a real estate project is from an association or group of allottees in such real estate project.]
(2) A regulatory fee calculated at the rate of one per cent of the cost being booked in insolvency resolution process costs in respect of hiring any professional or other services by the interim resolution professional or resolution professional, as the case m
The insolvency professional shall place in each meeting of the committee, the operational status of the corporate debtor and shall seek its approval for all costs, which are part of insolvency resolution process costs.]
The essential goods and services referred to in Section 14(2) shall mean --
(1) electricity;
(2) water;
(3) telecommunication services; and
(4) information technology services, to the extent these are not a direct input to the output produced or supplied by the corporate debtor.
Illustration.-- Water supplied to a corporate debtor will be essential supplies for drinking and sanitation purposes, and not for generation of hydro-electricity.
(1) The applicant shall fix the expenses to be incurred on or by the interim resolution professional.
(2) The Adjudicating Authority shall fix expenses where the applicant has not fixed expenses under sub-regulation (1).
(3) The applicant shall bear the expenses which shall be reimbursed by the committee to the extent it ratifies.
(4) The amount of expenses ratified by the committee shall be treated as insolvency resolution process costs.
1[Explanation.-- For the purposes of this regulation, "expenses" include the fee to be paid to the interim resolution professional, fee to be paid to insolvency professional entity, if any, and fee to be paid to professionals, if any, and other expenses to be incurred by the interim resolution professional.]
The committee shall fix the expenses to be incurred on or by the resolution professional and the expenses shall constitute insolvency resolution process costs.
1[Explanation.-- For the purposes of this regulation, "expenses" include the fee to be paid to the resolution professional, fee to be paid to insolvency professional entity, if any, and fee to be paid to professionals, if any, and other expenses to be incurred by the resolution professional.]
The interim resolution professional or the resolution professional, as the case may be, shall disclose item wise insolvency resolution process costs in such manner as may be required by the board.]
(1) The fee of interim resolution professional or resolution professional, under Regulations 33 and 34, shall be decided by the applicant or committee in accordance with this regulation.
(2) The fee of the interim resolution professional or the resolution professional, appointed on or after 1st October 2022, shall not be less than the fee specified in Clause 1 for the period specified in Clause 2 of Schedule-II:
Provided that the applicant or the committee may decide to fix higher amount of fee for the reasons to be recorded, taking into consideration market factors such as size and scale of business operations of corporate debtor, business sector in which corporate debtor operates, level of operating economic activity of corporate debtor and complexity related to process.
(3) After the expiry of period mentioned in Clause 2 of Schedule-II, the fee of the interim resolution professional or resolution professional shall be as decided by the applicant or committee
(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:
2[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.]
3[(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 comput
(1) On or before the seventy-fifth day of the insolvency commencement date, the resolution professional shall form an opinion whether the corporate debtor has been subjected to any transaction covered under Sections 43, 45, 50 or 66.
(2) Where the resolution professional is of the opinion that the corporate debtor has been subjected to any transactions covered under Sections 43, 45, 50 or 66, he shall make a determination on or before the one hundred and fifteenth day of the insolvency commencement date 2[x x x x].
3[(3) Where the resolution professional makes a determination under sub-regulation (2), he shall apply to the Adjudicating Authority for appropriate relief on or before the one hundred and thirtieth day of the insolvency commencement date.]]
4[(3-A) The resolution professional shall forward a copy of the application to the prospective resolution applicant to enable him to consider the same while submitting the resoluti
1[(1) Subject to sub-regulation (4), the resolution professional shall submit the information memorandum in electronic form to each member of the committee 2[on or before the ninety-fifth day from the insolvency commencement date] 13[, and its
subsequent updates thereof].]
3[(2) The information memorandum shall highlight the key selling propositions and contain all relevant information which serves as a comprehensive document conveying significant information about the corporate debtor including its operations, financial statements, to the prospective resolution applicant and shall contain the following details of the corporate debtor-- ]
4[(a) assets and liabilities 5[including contingent liabilities] with such description, as on the insolvency commencement date, as are generally necessary for ascertaining their values.
Explanation.-- "Description" includes the details such as date of
(1) The resolution professional shall publish brief particulars of the invitation for expression of interest in Form G of the 2[Schedule I] at the earliest, 3[not later than sixtieth day] from the insolvency commencement date, from interested and eligible prospective resolution applicants to submit resolution plans.
4[Clarification: The resolution professional after the approval of the committee may invite a resolution plan for each real estate project or group of projects of the corporate debtor.]
10[(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.]
(2) The resolution professional shall publish Form G--
(i) in one English and one regional language newspaper with wide circulation at the location of the registered
2[(1) The resolution professional shall, within five days of the date of issue of the final list under sub-regulation (12) of Regulation 36-A, issue the information memorandum, evaluation matrix and a request for resolution plans to every resolution applicant in the final list:
Provided that where such documents are available, the same may also be provided to every prospective resolution applicant in the provisional list.]
(2) The request for resolution plans shall detail each step in the process, and the manner and purposes of interaction between the resolution professional and the prospective resolution applicant, along with corresponding timelines.
(3) The request for resolution plans shall allow prospective resolution applicants a minimum of thirty days to submit the resolution plan(s).
(4) The request for resolution plans shall not require any non-refundable deposit for submission of or along with resolution plan.
3[(4-A)
(1) The resolution professional shall prepare a strategy for marketing of the assets of the corporate debtor in consultation with the committee, where the total assets as per the last available financial statements exceed one hundred crore rupees and may prepare such strategy in other cases.
(2) Decision of implementing such strategy along with its cost shall be subject to the approval of the committee.
(3) The member(s) of committee may also take measures for marketing of the assets of the corporate debtor.]
A resolution plan shall provide for the measures, as may be necessary, for insolvency resolution of the corporate debtor for maximization of value of its assets, including but not limited to the following --
(a) transfer of all or part of the assets of the corporate debtor to one or more persons;
(b) sale of all or part of the assets whether subject to any security interest or not;
2[(ba) restructuring of the corporate debtor, by way of merger, amalgamation and demerger;]
(c) the substantial acquisition of shares of the corporate debtor, or the merger or consolidation of the corporate debtor with one or more persons;
3[(ca) cancellation or delisting of any shares of the corporate debtor, if applicable;]
(d) satisfaction or modification of any security interest;
(e) curing or waiving of any breach of the terms of any debt due from the corporate debtor;
(f) reduction in the amount payable to the creditors;<
1[(1) The amount payable under a resolution plan--
(a) to the operational creditors shall be paid in priority over financial creditors; and
(b) to the financial creditors, who have a right to vote under sub-section (2) of Section 21 and did not vote in favour of the resolution plan, shall be paid in priority over financial creditors who voted in favour of the 8[plan:]]
9[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.]
2[(1-A) A resolution plan shall include a statement as to how it has dealt with the interests of all stakeholders, including financial creditors and operational creditors, of the corporate debtor.]
3[(1-B) A resolution plan shall include a statement giving details i
1[(1) A prospective resolution applicant in the final list may submit resolution plan or plans prepared in accordance with the Code and these regulations to the resolution professional electronically within the time given in the request for resolution plans under Regulation 36-B along with--
(a) an affidavit stating that it is eligible under Section 29-A to submit resolution plans;
(b) 2[x x x x]
(c) an undertaking by the prospective resolution applicant that every information and records provided in connection with or in the resolution plan is true and correct and discovery of false information and record at any time will render the applicant ineligible to continue in the corporate insolvency resolution process, forfeit any refundable deposit, and attract penal action under the Code.]
3[(1-A) The resolution professional may, if envisaged in the request for resolution plan--
(a) allow modification of the resoluti
(1) The interim resolution professional or the resolution professional, as the case may be, shall preserve copies of all such records which are required to give a complete account of the corporate insolvency resolution process.
(2) Without prejudice to the generality of the obligations under subregulation (1), the interim resolution professional or the resolution professional, as the case may be, shall preserve copies of records relating to or forming the basis of:--
(a) his appointment as interim resolution professional or resolution professional, including the terms of appointment;
(b) handing over/taking over of the assignment;
(c) admission of corporate debtor into corporate insolvency resolution process;
(d) public announcement;
(e) the constitution of committee and meetings of the committee;
(f) claims, verification of claims, and list of creditors;
(g) engagement of professionals, registered valuers, and insolvency prof
(1) While approving a resolution plan under sub-section (4) of Section 30 or deciding to liquidate the corporate debtor under sub-section (2) of Section 33, the committee may make a best estimate of the amount required to meet liquidation costs, in consultation with the resolution professional, in the event an order for liquidation is passed under Section 33.
(2) The committee shall make a best estimate of the value of the liquid assets available to meet the liquidation costs, as estimated in subregulation (1).
(3) Where the estimated value of the liquid assets under sub-regulation (2) is less than the estimated liquidation costs under sub-regulation (1), the committee shall approve a plan providing for contribution for meeting the difference between the two.
(4) The resolution professional shall submit the plan approved under sub-regulation (3) to the Adjudicating Authority while filing the approval or decision of the committee under Section 30 or 33, as the ca
(1) While deciding to liquidate the corporate debtor under Section 33, the committee shall examine whether to explore compromise or arrangement as referred to under sub-regulation (1) of Regulation 2-B of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulation, 2016 and the resolution professional shall submit the committee's recommendation to the Adjudicating Authority while filing application under Section 33.
(2) Where a recommendation has been made under sub-regulation (1), the resolution professional and the committee shall keep exploring the possibility of compromise or arrangement during the period the application to liquidate the corporate debtor is pending before the Adjudicating Authority.]
x x x x]
While approving a resolution plan under Section 30 or deciding to liquidate the corporate debtor under Section 33, the committee may, in consultation with the resolution professional, fix the fee payable to the liquidator, if an order for liquidation is passed under Section 33, for--
(a) the period, if any, used for compromise or arrangement under Section 230 of the Companies Act, 2013; 2[and]
3[x x x x]
(c) the balance period of liquidation.]
(1) The committee may instruct the resolution professional to make an application to the Adjudicating Authority under Section 12 to extend the insolvency resolution process period.
(2) The resolution professional shall, on receiving an instruction from the committee under this regulation, make an application to the Adjudicating Authority for such extension.
1[Clarification: It is clarified that the resolution professional shall continue to discharge his responsibilities under the corporate insolvency resolution process, till the application for extension is decided by the Adjudicating Authority.]
The following Table presents a model timeline of corporate insolvency resolution process on the assumption that the interim resolution professional is appointed on the date of commencement of the process and the time available is hundred and eighty days:
2[Section/Regulation | Description of Activity | Norm | Latest Timeline | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Section 16(1) | Commencement of CIRP and appointment of IRP | T | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulation 6(1) | Public announcement inviting claims | Within 3 Days of Appointment of IRP | T+3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Section 15(1) (c)/Regulations 6 (2)(c) and 12(1) | Submission of claims | F S.1[Regulation 40B Filing of Forms.--(1) The interim resolution professional or resolution professional, as the case may be, shall file the Forms, along with the enclosures thereto, on an electronic platform of the Board, as per the timelines stipulated against each form, in the table below:--
S.1[Regulation 40C Special provision relating to time-line.--Notwithstanding the time-lines contained in these regulations, but subject to the provisions in the Code, the period of lockdown imposed by the Central Government in the wake of Covid-19 outbreak shall not be counted for the purposes of the time-line for any activity that could not be completed due to such lockdown, in relation to a corporate insolvency resolution process.] S.1[Regulation 40D Decision for liquidation.--(1) The committee while considering the liquidation of the corporate debtor may consider factors including but not limited to non-operational status for preceding three years, goods produced or service offered or technology employed being obsolete, absence of any assets, lack of any intangible assets or factors which bring value as a going concern over and above the physical assets like brand value, intellectual property, accumulated losses, depreciation, investments that are yet to mature. S.FORM A
S.FORM AA
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