IBBI plans to expand IP assignment cap to include IRP and Liquidator roles

Discussion Paper; Dated: 12.08.2025

Review of Assignment Limits for Insolvency Professionals

The Insolvency and Bankruptcy Board of India (IBBI) has released a discussion paper seeking stakeholder feedback on the limits imposed on the number of assignments that can be handled by Insolvency Professionals (IPs). Currently, the cap applies only to assignments undertaken in the role of Resolution Professional (RP), with the objective of ensuring effective case management and maintaining quality in the resolution process.

Proposed Expansion of the Scope

Under the proposal, the existing ceiling of 10 assignments will be extended to also include cases where the IP is appointed as an Interim Resolution Professional (IRP) or as a Liquidator. This change aims to create a more holistic cap on workload, preventing overextension of resources across multiple capacities and ensuring that each case receives adequate attention.

Limits Based on Claim Size

In addition to expanding the scope of the cap, the IBBI has proposed that out of the total permissible assignments, no more than three should involve admitted claims exceeding ₹1000 crore. This provision recognises the greater complexity, resource requirements, and stakeholder engagement needed for large-value cases, thereby promoting better governance and quality control.

Stakeholder Consultation and Timeline

The IBBI has invited comments and suggestions from stakeholders, including insolvency professionals, creditors, and industry bodies, on the proposed amendments. Feedback must be submitted by 1 September 2025. This consultative approach reflects the regulator’s intent to ensure that any changes strike the right balance between efficiency, workload management, and the overall objectives of the insolvency framework.

Click Here To Read The Full Update