IBBI Update – Insolvency and Bankruptcy Board of India (Liquidation Process) (Second Amendment) Regulations, 2025.
| Regulations | Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 | Insolvency and Bankruptcy Board of India (Liquidation Process) (Second Amendment) Regulations, 2025. | Comments |
| Reg -31A Stakeholders’ consultation committee sub-regulation (1), clause (f) | review of marketing strategy in case of failure of sale of corporate debtor as a going concern | Omission of clause (f) in Regulation 31A(1) of the Liquidation Process Regulations. | |
| Reg – 32 Sale of Assets | The liquidator may sell- (a) an asset on a standalone basis; (b) the assets in a slump sale; (c) a set of assets collectively; (d) the assets in parcels; (e) the corporate debtor as a going concern; or (f) the business(s) of the corporate debtor as a going concern Provided that where an asset is subject to security interest, it shall not be sold under any of the clauses (a) to (f) unless the security interest therein has been relinquished to the liquidation estate | The liquidator may sell- (a) an asset on a standalone basis; (b) the assets in a slump sale; (c) a set of assets collectively; or (d) the assets in parcels; ( Provided that where an asset is subject to security interest, it shall not be sold under any of the clauses (a) to (d) unless the security interest therein has been relinquished to the liquidation estate | Clauses (e) & (f) omitted; proviso updated to refer to clause (d) |
| Reg -32 A Sale as a going concern | (1) Where the committee of creditors has recommended sale under clause (e) or (f) of regulation 32 or where the liquidator is of the opinion that sale under clause (e) or (f) of regulation 32 shall maximise the value of the corporate debtor, he shall endeavour to first sell under the said clauses. (2) For the purpose of sale under sub-regulation (1), the group of assets and liabilities of the corporate debtor, as identified by the committee of creditors under sub-regulation (2) of regulation 39C of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 shall be sold as a going concern. (3) Where the committee of creditors has not identified the assets and liabilities under sub regulation (2) of regulation 39C of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, the liquidator shall identify and group the assets and liabilities to be sold as a going concern, in consultation with the consultation committee. (4) The liquidator may sell the assets of the corporate debtor under clause (e) of regulation 32 exclusively only at the first auction. 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.] (5) 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 | Regulation 32A, relating to sale as a going concern, has been omitted |
Link – https://ibbi.gov.in/uploads/legalframwork/85d48cede86251c9446cf712d1812308.pdf
