IBBI Notifies The IBBI (Voluntary Liquidation Process) (Second Amendment) Regulations, 2026

The IBBI, through notification dated 01.06.2026 has released the IBBI (Voluntary Liquidation Process) (Second Amendment) Regulations, 2026 (“Voluntary Liquidation Amendment Regulations”) to amend the IBBI (Voluntary Liquidation Process) Regulations, 2017 (“Voluntary Liquidation Principal Regulations”), in order to give effect to the changes brought about by the Amendment Act.

The key amendments introduced by the Voluntary Liquidation Amendment Regulations are as follows:

1. Regulation 28A (Submission and updation of claims) has been inserted in the Voluntary Liquidation Principal Regulations. It provides that a person claiming to be a stakeholder, shall submit its claim on or before the last date mentioned in the public announcement. Further, it provides that a stakeholder shall update its claim as and when the claim is satisfied, partly or fully, from any source in any manner, after the liquidation commencement date.
2. Regulation 29 (Verification of claims) has been amended, wherein a proviso has been inserted after sub-regulation (1) to provide that a liquidator shall record in writing the reasons for rejecting a claim. Further, sub-regulation (2) has been added to provide that the liquidator shall communicate his decision of admission or rejection of claims to the stakeholder within 7 days of such admission or rejection of claims.
3. Regulation 42 (Termination of voluntary liquidation proceedings) has been inserted to provide a framework for termination of a voluntary liquidation, operationalising the new provisions of Section 59 of the IBC (Voluntary liquidation of corporate persons). Regulation 42 provides that the special resolution referred to in Section 59(5A)(a) shall provide for rationale for termination of voluntary liquidation proceedings, treatment of liquidation costs and a declaration that the termination will not result in prejudicially affecting any stakeholder interest. Further, the liquidator shall intimate the Ld. Adjudicating Authority regarding termination of voluntary liquidation proceedings. Upon termination of the voluntary liquidation proceedings, the appointment and term of liquidator shall stand terminated, the liquidator shall cease to exercise any powers or functions, and no further action shall be taken under the Voluntary Liquidation Amendment Regulations in respect of the voluntary liquidation proceedings.

The Voluntary Liquidation Amendment Regulations came into force on the date of their publication in the Official Gazette, i.e., 03.06.2026.

Footnote

^{1 IBBI (Voluntary Liquidation Process) (Second Amendment) Regulations, 2026.}

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