IBBI (Insolvency Resolution Process for Corporate Persons) Regulations
IBBI CIRP Regulations, 2016Promulgated by the Insolvency and Bankruptcy Board of India (IBBI) under Sections 5, 7, 9, 14, 15, 17, 18, 21, 24, 25, 29, 30, 196, and 240 of the Insolvency and Bankruptcy Code, 2016 (IBC). These regulations establish binding procedural codes for insolvency professionals, creditors, and corporate debtors during Corporate Insolvency Resolution Process (CIRP).
| Procedural Milestone | Regulation Reference | Statutory Mandate & Time Bound Deadlines |
|---|---|---|
| Public Announcement & Claims | Regulation 6 & Reg 12 | Public announcement within 3 days of admission; collation of claims in Forms B, C, CA, D within 14 days. |
| CoC Constitution & Voting | Regulation 18 – 26 | First CoC meeting within 7 days of filing report; 66% majority for appointment of RP and resolution plan approval; 51% for routine decisions. |
| Information Memorandum (IM) | Regulation 36 | RP must submit confidential IM containing comprehensive assets, liabilities, audited financials, and provisional balance sheets. |
| Resolution Plan Approval | Regulation 38 & 39 | Plan must provide for CIRP cost priority, operational creditor liquidation value parity, management continuity, and implementation schedule. |
Avoidance Transactions: PUFE Filings & Investigation Mandate
Regulation 35A – Sections 43, 45, 49, 66Regulation 35A imposes a strict statutory timeline on the Resolution Professional to identify, determine, and file applications before NCLT regarding vulnerable commercial transactions:
| Transaction Category | Governing Section | Statutory Lookback & Legal Standard |
|---|---|---|
| Preferential Transactions | Section 43 | 1 year lookback for unrelated creditors; 2 years for related parties prior to insolvency commencement date. |
| Undervalued Transactions | Section 45 | Transactions gifted or executed for significantly less consideration than real market value within relevant lookback. |
| Defrauding Creditors | Section 49 | Deliberate fraudulent transfers executed to keep assets beyond creditors' reach; no statutory lookback limitation. |
| Fraudulent Trading | Section 66 | Directors carrying on business with intent to defraud creditors are personally liable without limitation of liability. |
Strict 330-Day Outer Statutory Resolution Deadline & Waterfall Priority
Section 12 & Section 53 WaterfallMandatory 330-Day Outer Limit: Under Section 12(3) and Regulation 40A, CIRP must be concluded within 180 days, extendable by NCLT up to 270 days. The overall outer limit, inclusive of legal proceedings and stays, is mandatorily capped at 330 days to preserve going-concern value and prevent commercial asset decay.
Section 53 Liquidation Waterfall: Full priority to insolvency resolution process costs, followed equally by workmen dues (24 months) and secured debts, then wages of employees (12 months), unsecured financial creditors, government taxes (2 years), remaining debts, preference shareholders, and equity shareholders.