IBBI Notifies The IBBI (Insolvency Resolution Process For Corporate Persons) (Third Amendment) Regulations, 2026

The Insolvency and Bankruptcy Board of India (“IBBI”), through notification dated 01.06.2026 has released the IBBI (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2026 (“CIRP Amendment Regulations”) to amend the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (“CIRP Principal Regulations”), in order to give effect to the changes brought about by the Insolvency and Bankruptcy Code (Amendment) Act, 2026 (“Amendment Act”).

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

1. Disclosure at the stage of initiation by operational creditors and corporate applicants:

(a) Substitution of Regulation 2B (Record or evidence of transaction, debt and default by operational creditor): Under the erstwhile Regulation 2B, an operational creditor was required to furnish copies of relevant extracts of Forms GSTR-1 and GSTR-3B and a copy of eway bill, wherever applicable; provided that this requirement did not apply to operational creditors who were not required to obtain registration under the applicable Goods and Services Tax laws or in respect of goods and services not covered under such laws. The amended Regulation 2B (Information to be furnished by operational creditor) retains the aforesaid requirement and additionally requires an operational creditor to furnish, along with an application under Section 9(1) of Insolvency and Bankruptcy Code, 2016 (“IBC”), (i) details of any part-payments received from the corporate debtor in respect of the operational debt and the date of such payment; (ii) details of assignment or transfer of operational debt (if any) along with supporting documents; (iii) details of any guarantee provided by the Corporate Debtor (“CD”) or any other person in respect of the operational debt; (iv) a statement of account of the operational creditor with the CD showing the principal amount and interest, if any, due on such amount; (v) a statement as to whether the operational creditor is a related party of the corporate debtor; (vi) any other information which the operational creditor considers relevant to the application; and (vii) details of any other proceedings pending before any court, tribunal or arbitral tribunal against the corporate debtor for the recovery of the operational debt.

(b) Insertion of Regulation 2E (Submission of information by the corporate applicant): Regulation 2E requires a corporate applicant to furnish inter alia, along with an application under Section 10(1) of IBC, key financial and assetrelated particulars from their books of account, including list of all bank accounts operated by the CD, details of creditors, list of ongoing litigations, etc.

2. Better access to information for the resolution professional:

(a) In Regulation 3A (Assistance and cooperation by the personnel of the corporate debtor), the title of the regulation has been amended to ‘Duty to extend assistance and cooperation’. Further, subregulations (2), (5) and (6) of Regulation 3A have been amended to widen the set of persons obliged to extend cooperation to the Resolution Professional (“RP”) to any person as covered under section 19 of IBC (Persons to extend cooperation to Interim RP).

(b) Further, in Regulation 4 (Access to Books), subregulation (3) has been substituted to provide that the RP has the power to call for information from creditors, financial institutions and statutory authorities, and every creditor is required to share the records in its possession relating to the assets and liabilities of the CD at the first meeting of the Committee of Creditors (“CoC”).

3. Time-bound and reasoned communication on claims: In Regulation 13 (Verification of claims), subregulation (1A) has been substituted. The amended sub-regulation provides that the RP or the interim RP, as the case may be, after the verification of claims, must communicate the decision to admit or reject a claim, in whole or in part, along with reasons, to the concerned creditor within seven days of such admission or rejection of claims.

4. Treatment of guarantors’ assets: Regulation 28A (Transfer of assets of guarantor taken into possession) and Regulation 28B (Facilitation of transfer of assets) have been inserted after Regulation 28. A structured mechanism has been provided for placing the proposal before the CoC, and dealing with, the transfer of a guarantor’s asset which has been taken possession of by any creditor of the CD, along with coordination between the professionals handling the CD and a corporate guarantor that is itself under insolvency. The CoC is required to factor in the value of such assets while considering a resolution plan, so that the interests of all stakeholders, including creditors and guarantors, are adequately safeguarded.

5. Withdrawal of Application: Regulation 30A (Withdrawal of application) has been substituted. The amended regulation provides that an application for withdrawal under Section 12A of IBC shall be made to the Ld. Adjudicating Authority within 3 (three) days of approval by CoC and be backed by a bank guarantee or demand draft towards process costs, with actual costs to be deposited on approval. Upon approval of the withdrawal application by the Ld. Adjudicating Authority, the applicant is required to deposit the actual expenses incurred up to the date of such approval, as determined by the RP, into the bank account of the CD within 3 (three) days. Failure to do so would result in invocation of the bank guarantee or encashment of the demand draft, without prejudice to any other action permissible under the IBC. Further, no such application shall be made before constitution of CoC and after issuance of invitation for expression of interest.

6. Dissolution of CD during Corporate Insolvency Resolution Process (“CIRP”): Regulation 40E has been inserted to provide for a dedicated framework for dissolution of CD during CIRP. The CoC, may by a vote of not less than 66% (sixty six percent) of voting share, resolve to seek dissolution of the CD, if it is satisfied that assets of CD are insufficient to meet insolvency resolution process costs and likely liquidation costs or that the assets available with the CD are not capable of being effectively realised in the ordinary course of liquidation.

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