IBBI Notifies The Insolvency And Bankruptcy Board Of India (Liquidation Process) (Second Amendment) Regulations, 2025

The IBBI through its notification dated 14.10.2025 notified the IBBI (Liquidation Process) (Second Amendment) Regulations 2025 ("Liquidation Process Amendment Regulations")¹ amending the IBBI (Liquidation Process) Regulations 2016 ("Liquidation Process Regulations").

1. A key change introduced by the Liquidation Process Amendment Regulations is the omission of Regulation 32-A of the Liquidation Process Regulations, which permitted the sale of the corporate debtor or its business as a going concern where the COC or the liquidator was of the opinion that such a sale shall maximise the value of the corporate debtor.
2. Regulations 32(e) and 32(f) of the Liquidation Process Regulations which allowed the liquidator to sell the corporate debtor or its business as a going concern, have also been deleted.
3. Additionally, Regulation 31-A(1)(f) of the Liquidation Process Regulations, which provided for the constitution of a consultation committee to advise the liquidator on reviewing the marketing strategy in case of failure of such a sale of corporate debtor as a going concern, has been omitted.

Footnote

1. https://ibbi.gov.in/uploads/legalframwork/85d48cede86251c9446cf712d1812308.pdf

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