On 8 June 2026, the Insolvency and Bankruptcy Board of India notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fourth Amendment) Regulations, 2026 to amend the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.
All you need to know about the amendment:
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A new Regulation 16-E relating to “Assistance to committee where creditors other than scheduled banks or public financial institutions hold significant voting share” has been introduced which says that:
If creditors other than banks or public financial institutions hold more than 66% voting power in the Committee of Creditors, then the Resolution Professional will have to:
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Invite the 5 largest unrelated operational creditors to Committee of Creditors meetings.
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Among them, include the top 3 government/statutory authorities (like tax departments) based on the amount owed.
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These invited creditors can attend and observe but cannot vote.
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Any comments or observations they give must be written in the meeting minutes.
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The provision relating to “Approval of committee for insolvency resolution process costs” under Regulation 31-B has been revised as:
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The Resolution Professional will have to present all Corporate Insolvency Resolution Process costs incurred so far and the reasons for those costs.
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These have to be approved by the Committee of Creditors in its first meeting.
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The Resolution Professional will have to prepare a report covering expected income, expenses, cash flows, working capital needs and risks if the business continues or stops.
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In the first meeting, the Committee of Creditors will review the report, decide whether to continue operation, and it decides to continue then decide how long and to what extent.
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After the first meeting, no Corporate Insolvency Resolution Process cost can be incurred without Committee of Creditors approval
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At each meeting, the Resolution Process will have to:
✓ Show estimated income, expenses, and cash flow till next meeting;
✓ Get approval for future costs;
✓ Show actual costs vs previously approved estimates.
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The provision relating to “Approval of resolution plan” under Regulation 39 has been revised as follows:
The committee will have to record its decision and reasons on:
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Is each resolution plan practical and workable?
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How much money are creditors likely to actually recover under the plan compared with fair value and liquidation value?
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Whether enough effort was made to get the best possible plan or not?
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Read more:
[IBBI CIRP Fourth Amendment 2026: Key Changes to CoC Assistance, Cost Approval & Resolution Plan Rules, dt. 8 June 2026]
