Pranav B Prem

The Insolvency and Bankruptcy Board of India (IBBI) has notified the Insolvency and Bankruptcy Board of India (Liquidation Process) (Second Amendment) Regulations, 2025, by exercising its powers under Section 196(1)(t) read with Section 240 of the Insolvency and Bankruptcy Code, 2016.

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The notification, issued on October 14, 2025, and published in the Official Gazette, amends certain provisions of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. The amendments came into force from the date of publication and shall apply prospectively, i.e., only to cases where liquidation by sale as a going concern has not commenced.

Key Amendments

The following significant amendments have been made through this notification:

1. Omission of Clause (f) in Regulation 31A(1): The amendment omits clause (f) from sub-regulation (1) of Regulation 31A, which pertains to the Stakeholders’ Consultation Committee in liquidation proceedings.

2. Amendments to Regulation 32: The scope and structure of Regulation 32, which deals with modes of sale of assets in liquidation, have been revised as follows:

• In clause (c), the word “or” has been inserted after the semicolon (“;”).
• In clause (d), the semicolon (“;”) has been substituted with a colon (“:”).
• Clauses (e) and (f) have been omitted.
• In the proviso, the reference to “(f)” has been replaced with “(d)” to align with the omitted clauses.

3. Omission of Regulation 32A: The amendment omits Regulation 32A entirely, which previously dealt with the sale of the corporate debtor or its business as a going concern.

The Liquidation Process Regulations, 2016 were first notified on December 15, 2016, and have since been amended multiple times to align with evolving insolvency jurisprudence and streamline liquidation practices. The Second Amendment Regulations, 2025 mark a further simplification by removing redundant provisions and clarifying sale procedures under liquidation. The omission of Regulation 32A indicates a shift in regulatory treatment of the “going concern sale” mechanism, which may now be governed by alternative frameworks or separate guidance from IBBI.

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The notification was signed by Ravi Mittal, Chairperson, IBBI, and published as F. No. IBBI/2025-26/GN/REG129.