IBBI issues guidelines for recommendation of insolvency professionals as IRPS, RPS, liquidators and bankruptcy trustees: advance panel to avoid administrative delays

Key Highlights of the Guidelines:

1. Advance Preparation of Panel of Insolvency Professionals: The guidelines provide for preparation of a panel of IPs in advance, to be shared with the Adjudicating Authorities, namely the National Company Law Tribunal and Debt Recovery Tribunal. The objective is to reduce administrative delays in appointment of IPs as interim resolution professionals, resolution professionals, liquidators and bankruptcy trustees in corporate and individual insolvency processes.

2. Eligibility Criteria for Inclusion in the Panel: An IP will be eligible for inclusion in the panel only if no disciplinary proceeding initiated by the IBBI or the relevant insolvency professional agency is pending against such IP, and the IP has not been convicted by a court of competent jurisdiction during the preceding three years. The IP must also submit an expression of interest along with consent to act as an IRP, RP, liquidator or bankruptcy trustee, and must hold an Authorisation for Assignment valid for the entire period of the panel.

3. Submission of Expression of Interest: The IBBI is required to invite expressions of interest from IPs in Form A through email at their registered email addresses. Submission of the expression of interest constitutes unconditional consent by the IP to act as an IRP, liquidator, RP or bankruptcy trustee in any process relating to a corporate or individual debtor. For the panel effective from July 1, 2026 to December 31, 2026, IPs were required to submit their expression of interest by June 19, 2026, and the panel was to be sent to the Adjudicating Authority by June 30, 2026.

4. Common Panel for Multiple Roles: The guidelines provide for a common panel of IPs for appointment as IRP, liquidator, RP and bankruptcy trustee. The panel is valid for a period of six months. For individual IPs, the panel is to be prepared on a zone-wise and bench-wise basis, depending on the registered office address of the IP as registered with the IBBI. However, insolvency professional entities acting as IPs are eligible for appointment across all NCLT benches.

5. Sorting of Eligible Insolvency Professionals: Eligible IPs included in the panel will be sorted based on the volume of their ongoing assignments. Where two or more IPs have the same score, they will be placed in the panel according to the date of their registration with the IBBI, with the earlier registered IP being placed higher in the panel.

6. Conditions Applicable to Insolvency Professionals: Inclusion of an IP’s name in the panel will be deemed to be acceptance by such IP to act as an IRP, liquidator, RP or bankruptcy trustee upon appointment by the National Company Law Tribunal or Debt Recovery Tribunal. IPs are not permitted to withdraw their consent or refuse appointment unless permitted by the Adjudicating Authority or the IBBI in accordance with law. Any refusal to act without sufficient justification will be treated as a deviation from consent and may result in removal of the IP’s name from the panel for six months.

7. Discretion of the Adjudicating Authority: The Adjudicating Authority may appoint any IP from the panel at its discretion. The guidelines also clarify that the Adjudicating Authority may refer to or direct the IBBI for appointment or recommendation of an IP from within or outside the panel, in which case the IBBI may take suitable action for such appointment.

8. Repeal of Earlier Guidelines: The Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees (Recommendation) (Second) Guidelines, 2025, issued on November 21, 2025, stand repealed from the date of coming into effect of the 2026 Guidelines. However, actions taken under the repealed guidelines have been saved.

Conclusion

The guidelines seek to streamline the process for appointment of insolvency professionals across corporate and individual insolvency proceedings by creating a pre-approved panel of eligible IPs. By requiring prior consent, valid authorization and disclosure of ongoing assignments, the framework is intended to promote timely appointments, transparency and administrative efficiency in insolvency proceedings.