The Insolvency and Bankruptcy Board of India (IBBI), on June 1, 2026, notified the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Second Amendment) Regulations, 2026, introducing significant changes to the voluntary liquidation framework under the Insolvency and Bankruptcy Code, 2016. The amendments streamline procedural requirements by replacing prescribed forms in several regulations with forms to be notified separately through IBBI circulars and by omitting the existing Schedule I while renumbering Schedule II as Schedule I.
The amendments strengthen the claims management process by requiring stakeholders to submit claims within the timeline specified in the public announcement and to update claims whenever they are partially or fully satisfied from any source after the liquidation commencement date. Liquidators are now required to record reasons in writing for claim rejections and communicate decisions regarding admission or rejection of claims to stakeholders within seven days. The regulations also rename the stakeholder consultation framework as “Assistance by Stakeholders,” reflecting a revised approach to stakeholder participation during the liquidation process.
A key reform introduced through the amendment is the insertion of a detailed framework for termination of voluntary liquidation proceedings. The new provisions prescribe conditions for termination, including disclosure of the rationale, treatment of liquidation costs, and confirmation that stakeholder interests will not be adversely affected. The liquidator must submit a prescribed report to the Adjudicating Authority and notify the IBBI and the Registrar of Companies upon fulfillment of statutory requirements. Once voluntary liquidation proceedings are terminated, the liquidator’s appointment and powers cease, and no further action may be taken under the voluntary liquidation regulations.
[Notification No. IBBI/2026-27/GN/REG148]
