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IBBI, vide notification dated 19.05.2026 has notified the IBBI (Liquidation Process) (Third Amendment) Regulations, 2026 (“Liquidation Amendment Regulations”)1 to amend the IBBI (Liquidation Process) Regulations, 2016 (“Liquidation Principal Regulations”).
The Liquidation Amendment Regulations amend Regulation 35 of the Liquidation Principal Regulations which provides for valuation of assets intended to be sold. Sub-Regulation (2) of Regulation 35 provides that the liquidator shall appoint two registered valuers to determine the realisable value of the assets or businesses of the corporate debtor.
A proviso has been inserted after sub-regulation (2) of Regulation 35 which provides that in respect of a corporate debtor classified as a micro, small or medium enterprise under Section 7(1) of the Micro, Small and Medium Enterprises Development Act, 2006, the liquidator shall appoint one registered valuer for each asset class of the corporate debtor, unless the liquidator in consultation with the stakeholders’ consultation committee decides to appoint two registered valuers, with reasons to be recorded in writing.
The Liquidation Amendment Regulations have come into force on the date of their publication in the Official Gazette, i.e., 20.05.2026.
Footnote
1 IBBI (Liquidation Process) (Third Amendment) Regulations, 2026)
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