IBBI Deletes ‘Sale as a Going Concern’ Provisions from CIRP and Liquidation Rules

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  • Last Updated on 18 October, 2025

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IBBI sale as a going concern deletion

Notification F. No. IBBI/2025-26/GN/REG129, Dated: 14.10.2025

The Insolvency and Bankruptcy Board of India (IBBI) has notified two key amendments — the IBBI (Insolvency Resolution Process for Corporate Persons) (Sixth Amendment) Regulations, 2025 and the IBBI (Liquidation Process) (Second Amendment) Regulations, 2025.

These amendments introduce significant changes to the treatment of “sale as a going concern” under the insolvency and liquidation frameworks.

1. Deletion of Provisions Relating to ‘Sale as a Going Concern’

The notified amendments delete the following provisions:

  • Regulation 39C of the Insolvency Resolution Process for Corporate Persons (CIRP) Regulations, and
  • Regulation 32A of the Liquidation Process Regulations.

Both of which pertained to the sale of a corporate debtor or its business as a going concern.

With these deletions, the specific regulatory provisions governing such sales have been removed from both sets of regulations.

2. Modification to Regulation 39D of CIRP Regulations

Additionally, clause (b) of Regulation 39D in the CIRP Regulations, which related to the fee payable for sale under Regulation 32 of the Liquidation Process Regulations, has also been deleted.

This change simplifies the structure of resolution process fees and removes cross-references tied to the now-omitted “going concern” provisions.

3. Objective and Implications

The amendments reflect IBBI’s initiative to streamline the insolvency and liquidation frameworks, remove redundant or overlapping provisions, and ensure regulatory clarity in sale mechanisms during the insolvency process.

Further guidance from IBBI or related notifications may clarify how ongoing or proposed “sale as going concern” transactions will be treated under the revised framework.

Click Here To Read The Full Notification

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied