The Insolvency and Bankruptcy Board of India ("IBBI") notified the IBBI (Insolvency Resolution Process for Corporate Persons) (Fifth Amendment) Regulations, 2025 ("Fifth Amendment Regulations") by notification dated 04.07.20251 to amend the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 ("Principal CIRP Regulations"). The Fifth Amendment Regulations came into force on the date of its publication in the Official Gazette i.e., 05.07.2025.
The Fifth Amendment Regulations, inter alia, provide for the following key changes:
- Regulation 36(2) of the Principal CIRP Regulations has been amended to insert a new clause (ha) requiring disclosure of details of: (a) all identified avoidance transactions as stipulated under Chapter III of the Insolvency and Bankruptcy Code, 2016 ("IBC"); (ii) fraudulent or wrongful trading as stipulated under Chapter VI of the IBC; and (iii) preferential and other transactions as required under Regulation 35A of the Principal CIRP Regulations.
- Regulation 38 of the Principal CIRP Regulations has been
amended to insert sub-regulation (2A), which bars a resolution plan
from assigning any avoidance transactions or fraudulent/wrongful
trading claims that were not:
- disclosed in the information memorandum; and
- intimated to all prospective resolution applicants as required under Regulation 35A(3A) before the last date for submission of resolution plans.
- This restriction under sub-regulation 2A of Regulation 38 of the Principal CIRP Regulations shall not apply to resolution plans already submitted to the Adjudicating Authority as per the IBC prior to commencement of the Fifth Amendment Regulations.
Footnote
1. IBBI notifies Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fifth Amendment) Regulations, 2025.
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