Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fourth Amendment) Regulations, 2025
The Insolvency and Bankruptcy Board of India has amended the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 by notifying the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fourth Amendment) Regulations, 2025. The amended Regulations have become effective w.e.f. 27.05.2025.
The key amendments made are as under:
Regulation 18 – Meeting of Committee
The Regulation 18 has been amended to provide that the committee of creditors may direct the Resolution Professional to invite the providers of interim finance to attend as observers without voting rights, meeting(s) of the committee, as decided by the committee.
Regulation 36A – Invitation for Expression of Interest
Further in terms of Regulation 36A, the resolution professional is required to publish brief particulars of the invitation for expression of interest from interested and eligible prospective resolution applicants to submit resolution plans. It has been now provided that the resolution professional may, with the approval of the committee of creditors, 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.
Regulation 36B – Request for Resolution Plan
The Sub-Regulation 6A of the Regulation 36B provides that If the resolution professional, does not receive a resolution plan in response to the request under this regulation, he may, with the approval of the committee of creditors, issue request for resolution plan for sale of one or more of assets of the corporate debtor. This sub-regulation has been omitted.
Regulation 38 – Mandatory contents of the resolution plan
The Regulation 38 provides that amount payable to the financial creditors, who have a right to vote and did not vote in favour of the resolution plan, shall be paid in priority over financial creditors who voted in favour of the plan.
Now it has been further 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.
Regulation 39 – Approval of resolution plan.
It has been provided that the resolution professional shall submit to the committee of creditors all resolution plans whether or not complying with the requirements of the IBC and regulations made thereunder. Further, the details of Non-Compliant Plans shall also be furnished along with the details of specified transactions and the orders, if any, of the adjudicating authority in respect of such transactions.
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