IBBI Omits Regulation on Assessment of Sale as a Going Concern under CIRP

The Insolvency and Bankruptcy Board of India (IBBI), vide the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Sixth Amendment) Regulations, 2025, notified amendments for the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations on October 14, 2025.

Subject to such amendment, Regulation 39C has been omitted in its entirety, thereby removing the regulatory framework relating to the assessment and recommendation for sale of the corporate debtor or its business as a going concern. In addition, clause (b) of Regulation 39D, which formed part of the provisions governing the liquidator’s fee, has also been omitted. 

Key implications of the amendment include:

• The Committee of Creditors can no longer evaluate or recommend the sale of the corporate debtor or its business as a going concern during the corporate insolvency resolution process (CIRP).

• The resolution professional is no longer required to submit any such recommendation to the Adjudicating Authority at the CIRP stage.

• The provisions governing the liquidator’s fee no longer account for any period spent on the sale of the corporate debtor or its business as a going concern under the IBBI Liquidation Process Regulations, 2016.

The amendment effectively streamlines the CIRP framework by removing going-concern sale considerations from the resolution stage and rationalising provisions relating to the liquidator’s fee structure.