Extension of the corporate insolvency resolution process period
Regulation 40ofInsolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016
(1) The committee may instruct the resolution professional to make an application to the Adjudicating Authority under section 12 to extend the insolvency resolution process period. (2) The resolution professional shall, on receiving an instruction from the committee under this Regulation, make an application to the Adjudicating Authority for such extension. 206 Omitted by Notification No. IBBI/2025-26/GN/REG130, dated 14th October, 2025 (w.e.f. 14-10-2025). Prior to omission it stood as under- “39C. Assessment of sale as a going concern. (1) While approving a resolution plan under section 30 or deciding to liquidate the corporate debtor under section 33, the committee may recommend that the liquidator may first explore sale of the corporate debtor as a going concern under clause (e) of regulation 32 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 or sale of the business of the corporate debtor as a going concern under clause (f) thereof, if an order for liquidation is passed under section 33. (2) Where the committee recommends sale as a going concern, it shall identify and group the assets and liabilities, which according to its commercial considerations, ought to be sold as a going concern under clause (e) or clause (f) of regulation 32 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. (3) The resolution professional shall submit the recommendation of the committee under sub-regulations (1) and (2) to the Adjudicating Authority while filing the approval or decision of the committee under section 30 or 33, as the case may be.”. 207 Inserted by Notification No. IBBI/2025-26/GN/REG130, dated 14th October, 2025 (w.e.f. 14-10-2025). 208 Omitted by Notification No. IBBI/2025-26/GN/REG130, dated 14th October, 2025 (w.e.f. 14-10-2025). Before omission it stood as under- “(b) the period, if any, used for sale under clauses (e) and (f) of regulation 32 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016; and”
209[Clarification: It is clarified that the resolution professional shall continue to discharge his responsibilities under the corporate insolvency resolution process, till the application for extension is decided by the Adjudicating Authority.] 210[40A.Model time-line for corporate insolvency resolution process. The following Table presents a model timeline of corporate insolvency resolution process on the assumption that the interim resolution professional is appointed on the date of commencement of the process and the time available is hundred and eighty days: 211[Section / | Description of Activity Norm Latest Regulation | Timeline Section 16(1) Commencement of CIRP and …. T appointment of IRP Regulation 6(1) Public announcement inviting Within 3 Days of | T+3 claims | Appointment of IRP Section 15(1)(c) Submission of claims For 14 Days from | T+14 / Regulations | Appointment of IRP 6(2)(c) and 12 (1) 212[***]
| Regulation Regulation | Verification of claims received Submission of claims Up to 90th day of | T+21 T+90 |
213[***] Within 7 days from 214[***] the receipt of the claim Section 21(6A) Application for appointment of AR Within 2 days from | T+23 (b) / Regulation | verification of claims 16A | received under
| Regulation | Report certifying constitution of regulation 12(1) | T+23 | ||||||||||||||||||
| 17(1) | CoC Section 22(1) / 1st meeting of the CoC Within 7 days of filing | T+30 Regulation | of the report certifying 19(2) | constitution of the CoC, but with five days’ notice. Section 22(2) Resolution to appoint RP by the In the first meeting of | T+30 CoC | the CoC Section 16(5) Appointment of RP On approval by the | …… AA | |||||||||||||
| Regulation | IRP performs the functions of RP till If RP is not appointed | T+40 | ||||||||||||||||||
| 17(3) | the RP is appointed. | by 40th day of | ||||||||||||||||||
| commencement Regulation 27 Appointment of valuer Within 7 days of | T+47 appointment of RP, but not later than 47th day of commencement. 215[***] 213 Omitted by Notification No. IBBI/2024-25/GN/REG116, 24th September, 2024 (w.e.f. 24-09-2024). Prior to omission, it stood as “Verification of claims received under regulation 12(2)”. 214 Omitted by Notification No. IBBI/2024-25/GN/REG116, 24th September, 2024 (w.e.f. 24-09-2024). Prior to omission, it stood as “T+97”. 215 Omitted by Notification No IBBI/2026-27/GN/REG152, dated 01st June, 2026 (w.e.f. 02-06-2026). Prior to omission, it stood as under:- “ Section 12(A) / Submission of application for withdrawal of Before issue of EoI W Regulation 30A | application admitted CoC to dispose of the application Within 7 days of its receipt | W+7 or 7 days of constitution of CoC, whichever is later. Filing application of withdrawal, if Within 3 days of approval | W+10 approved by CoC with 90% majority by CoC voting, by RP to AA ”. | ||||||||||||||||
| Regulation 35A RP to form an opinion on Within 75 days of the | T+75 preferential and other transactions | commencement RP to make a determination on Within 115 days of | T+115 preferential and other transactions | commencement RP to file applications to AA for Within 130 days of | T+130 appropriate relief | commencement Regulation 36 Submission of IM to CoC Within 95 days of | T+95 (1) | commencement Regulation 36A 216[Publication of brief particulars of Within 60 days of | T+60 invitation for expression of interest] commencement Invitation of EoI Submission of EoI At least 15 days from | T+75 issue of EoI (Assume 15 days) Provisional List of RAs by RP Within 10 days from | T+85 the last day of receipt of EoI Submission of objections to For 5 days from the | T+90 provisional list date of provisional list Final List of RAs by RP Within 10 days of the | T+100 receipt of objections 217[Regulation Issue of RFRP, including Evaluation Within 5 days of the | T+105 | ||||||
| 36B Receipt of Resolution Plans At least 30 days from | Matrix and IM T+135] issue of RFRP (Assume 30 days) 216 Substituted by Notification No. IBBI/2026-27/GN/REG152, dated 01st June, 2026 (w.e.f. 02-06-2026). Before substitution, the words stood as under: - “Publish Form G”. 217 Substituted by Notification No. No. IBBI/2023-24/GN/REG106, dated 18th September, 2023 (w.e.f 18-09-2023). Before substitution words stood as- Regulation 36B Issue of RFRP, including Within 5 days of the issue T+105 Evaluation Matrix and of the provisional list IM Receipt of Resolution At least 30 days from T+135 Plans | issue of the final listissue of RFRP (Assume 30 days) | ||||||||||||||||||
| 39(4) | Resolution Plan to AA | by the CoC | ||||||||||||||||||
| Section 31(1) Approval of resolution plan by AA T+180] AA: Adjudicating Authority; AR: Authorised Representative; CIRP: Corporate Insolvency Resolution Process; CoC: Committee of Creditors; EoI: Expression of Interest; IM: Information Memorandum; IRP: Interim Resolution Professional; RA: Resolution Applicant; RP: Resolution Professional; RFRP: Request for Resolution Plan.] 219[40B. Filing of Forms. (1) The interim resolution professional or resolution professional, as the case may be, shall file the Forms, along with the enclosures thereto, on an electronic platform of the Board, as per the timelines stipulated against each form, in the table below:- Form Period covered and scope To be | Timeline filed by (1) (2) (3) (4) CP-1 From commencement of CIRP till constitution | IRP On or before the of CoC: This includes details of IRP, CD, and the | 10th day of the Applicant, admission of application by AA | subsequent (Adjudicating Authority), public announcement, | month, after details of Authorised Representatives, taking | filing the report over management of the CD, receipt and on constitution verification of claims, constitution of CoC, etc. | of CoC to AA CP-2 From constitution of CoC till issue of RFRP: | RP On or before the This includes details of RP, details of registered | 10th day of the valuers, details in IM, expression of interest, | subsequent RFRP and modification thereof, etc. | month, after issuance of RFRP CP-3A Details of resolution plan / liquidation / closure | RP On or before the application filed with AA: This includes details | 10th day of the of the resolution applicants, details of approval or | subsequent rejection of resolution plans by CoC, details of | month, after application filed with AA for approval of | filing resolution plan, details of initiation of liquidation | application with (if applicable), etc. | AA CP-3B Approval of resolution plan / liquidation / | RP Within 7 days closure by AA: This includes details of the | of disposal of 218 Substituted by Notification No. IBBI/2026-27/GN/REG152, dated 01st June, 2026 (w.e.f. 02-06-2026). Before substitution, the words stood as under: - “T+165”. 219 Substituted by Notification No. IBBI/2025-26/GN/REG126, dated 19th May, 2025 (w.e.f. 01-06-2025). |
| resolution plan approved by the AA or liquidation | application by order or closure order, etc. | AA CP-4 Avoidance transactions reported to AA: This | RP On or before the includes details of the avoidance transactions | 10th day of the (preferential, undervalued, extortionate credit, | subsequent fraudulent), underlying amounts, date of | month, after reporting to AA, order of AA on the application | filing of (if any), etc. | application(s) with AA or disposal of application(s) by AA CP-5 Monthly: This includes updates on the status of | IRP/RP On or before the CIRP, details of CoC meetings held, updates on | 10th of every litigations, details of expenses incurred, reasons | month for the for delay (if any), etc. | preceding month. (2) The Board shall make available the Forms referred in sub-regulation (1) on the electronic platform and may modify them from time to time. (3) The interim resolution professional or resolution professional, as the case may be, shall ensure that the Forms and its enclosures filed under this regulation are accurate and complete. (4) The filing of a Form under this regulation after the due date of submission, whether by correction, updation or otherwise, shall be accompanied by a fee of five hundred rupees per Form for each calendar month of delay from a date to be notified through circular by the Board in this regard. (5) The interim resolution professional or resolution professional, as the case may be, shall be liable to any action which the Board may take as deemed fit under the Code or any regulation made thereunder, including refusal to issue or renew Authorisation for Assignment, for- (i) failure to file a Form along with requisite information and records; (ii) inaccurate or incomplete information or records filed in or along with a Form; (iii) delay in filing the Form.] 220[40C. Special provision relating to time-line. Notwithstanding the time-lines contained in these regulations, but subject to the provisions in the Code, the period of lockdown imposed by the Central Government in the wake of Covid-19 outbreak shall not be counted for the purposes of the time-line for any activity that could not be completed due to such lockdown, in relation to a corporate insolvency resolution process.] 220 Inserted by Notification No. IBBI/2020-21/GN/REG059 dated 20th April, 2020 (w.e.f. 29.03.2020) |
221[40D. Decision for liquidation. (1) The committee while considering the liquidation of the corporate debtor may consider factors including but not limited to non-operational status for preceding three years, goods produced or service offered or technology employed being obsolete, absence of any assets, lack of any intangible assets or factors which bring value as a going concern over and above the physical assets like brand value, intellectual property, accumulated losses, depreciation, investments that are yet to mature. (2) Such consideration may be recorded and submitted in the application for liquidation submitted by the resolution professional to the Adjudicating Authority.] 222[40E. Dissolution of corporate debtor during corporate insolvency resolution process. (1) Where the committee is satisfied that— (a) the assets of the corporate debtor are insufficient to meet the insolvency resolution process costs and likely liquidation costs; or (b) the assets available with the corporate debtor are not capable of being effectively realised in the ordinary course of liquidation; the committee may, by a vote of not less than sixty-six per cent. of the voting share, resolve to seek dissolution of the corporate debtor. (2) Upon passing of the resolution under sub-regulation (1), the resolution professional shall, within ten days, intimate the Adjudicating Authority of the decision of the committee by filing an application enclosing— (a) a copy of the resolution passed by the committee; (b) details of assets of the corporate debtor, including movable, immovable, financial and intangible assets; (c) details of claims, avoidance transactions and contingent assets, if any; and (d) a statement demonstrating that continuation of the corporate insolvency resolution process or commencement of liquidation would not be economically beneficial for the stakeholders, having regard to the factors considered by the committee of creditors under sub-regulation (1).] 221 Inserted by Notification No. IBBI/2022-23/GN/REG093, dated 16th September, 2022 (w.e.f. 16-09-2022). 222 Inserted by Notification No. IBBI/2026-27/GN/REG152, dated 01st June, 2026 (w.e.f. 02-06-2026).
223[40F. Restoration of corporate insolvency resolution process. (1) For the purpose of sub-section (1A) of section 33, the committee shall be given an opportunity to file an application for restoration of the corporate insolvency resolution process before the passing of the liquidation order by the Adjudicating Authority. Clarification: It is clarified that the resolution professional shall continue to discharge his responsibilities under the corporate insolvency resolution process, till the application for restoration is decided by the Adjudicating Authority. (2) Where the committee decides for filing under sub-regulation (1), the resolution professional shall file an application before the Adjudicating Authority for restoration of the corporate insolvency resolution process. (3) The application under sub-regulation (2) shall be accompanied by— (a) a certified copy of the resolution of the committee of creditors approving restoration; (b) a brief note setting out the reasons for seeking restoration; and (c) a proposed timeline for completion of the restored corporate insolvency resolution process.] 224[***] 223 Inserted by Notification No. IBBI/2026-27/GN/REG152, dated 01st June, 2026 (w.e.f. 02-06-2026). 224 Omitted by Notification No IBBI/2026-27/GN/REG152, dated 01st June, 2026 (w.e.f. 02-06-2026).
225 226[ [ Schedule-I] (Under Regulation 34B of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016) Minimum Fixed Fee. 1. Minimum fixed fee as per the table -1 below shall be paid to the interim resolution professional or the resolution professional, as the case may be, for the period mentioned in clause 2: Table-1: Minimum Fixed Fee Structure Quantum of Claims Admitted Minimum Fee Per Month (Rs. lakh) (i) Less than or equal to Rs. 50 crore 1.00 (ii) More than Rs.50 crore but less than or equal to Rs.500 crore 2.00 (iii) More than Rs.500 crore but less than or equal to Rs.2,500 | 3.00 crore (iv) More than Rs.2,500 crore but less than or equal to | 4.00 Rs.10,000 crore (v) More than Rs.10,000 crore 5.00 Period for minimum fixed fee. 2. The minimum fixed fee shall be applicable for the period, from appointment as interim resolution professional or resolution professional, till the time of – (a) submission of application for approval of resolution plan under section 30; (b) submission of application to liquidate the corporate debtor under section 33; (c) submission of application for withdrawal under section 12A; or (d) order for closure of corporate insolvency resolution process; whichever is earlier. Performance-linked incentive fee for timely resolution. 3. In cases where resolution plan is submitted to the Adjudicating Authority within the time period given in table-2 from the insolvency commencement date, performance-linked incentive fee as per table-2 may be paid to the resolution professional, after approval of such resolution plan by the Adjudicating Authority on commencement of payment to creditors by the resolution applicant. Table-2: Performance-linked incentive fee for timely resolution 225 Inserted by Notification No. IBBI/2022-23/GN/REG091, dated 13th September, 2022 (w.e.f. 13.09-2022) 226 Substituted by Notification No. IBBI/2026-27/GN/REG152, dated 01st June, 2026 (w.e.f. 02-06-2026). Before substitution, the words stood as, under: - “Schedule-II”.
Time period from insolvency commencement date Fee as % of Realisable Value (i) Less than or equal to 165 days 1.00 (ii) More than 165 days but less than or equal to 270 days 0.75 (iii) More than 270 days but less than or equal to 330 days 0.50 (iv) More than 330 days 0.00 Performance-linked incentive fee for value maximisation. 4. The performance-linked incentive fee for value maximisation may be paid to the resolution professional at the rate of one per cent of the amount by which the realisable value is higher than the liquidation value, after approval of the resolution plan by Adjudicating Authority on commencement of payment to creditors by the resolution applicant. Explanation: For the purposes of clause 3 and clause 4, “realisable value” means the amount payable to creditors in the resolution plan approved under section 31. Illustration - A corporate debtor having liquidation value of twenty crore rupees was resolved and the realisable value to creditors was one hundred crore rupees. The resolution plan was submitted to the Adjudicating Authority on 170th day from the insolvency commencement date. The committee has decided to pay the performance-linked incentive fees under clause 3 and 4. In this case, fee payable to the resolution professional shall be as under: (i) Performance-linked incentive fee for timely resolution: 0.75% of Rs. 100 crore = Rs.75 lakh, and (ii) Performance-linked incentive fee for value maximisation: 1.00% of Rs. 80 crore (Rs.100 crore – Rs.20 crore) = Rs.80 lakh.]