IBBI Introduces Claim Updation and Voluntary Liquidation Exit Framework

Notification F. No. IBBI/2026-27/GN/REG148, Dated 01.06.2026

The Insolvency and Bankruptcy Board of India (IBBI) has amended the Voluntary Liquidation Process Regulations, 2017 to strengthen the framework governing stakeholder claims, communication by liquidators and termination of voluntary liquidation proceedings.

The amendments also introduce flexibility in regulatory reporting by replacing prescribed forms in the Regulations with forms to be notified separately through circulars.

1. Provisions Introduced for Submission and Updation of Claims

The amended regulations provide a formal framework for the submission and updation of claims by stakeholders during the voluntary liquidation process.

The changes are intended to facilitate timely filing of claims and ensure that stakeholders can update claim-related information wherever required during the course of the liquidation proceedings.

2. Communication of Admission or Rejection of Claims

The amendments require liquidators to communicate the outcome of claim verification to stakeholders.

Accordingly, liquidators shall communicate:

• Admission of claims;
• Partial admission of claims; or
• Rejection of claims,

as the case may be, after examining the claims submitted by stakeholders.

The requirement seeks to improve transparency and provide clarity regarding the status of claims.

3. Framework for Termination of Voluntary Liquidation Proceedings

The regulations have also been amended to provide for termination of voluntary liquidation proceedings under Section 59(5A) of the Insolvency and Bankruptcy Code, 2016.

The newly introduced provisions prescribe the regulatory framework governing termination of voluntary liquidation in circumstances contemplated under the Code.

The amendment is intended to facilitate orderly closure of proceedings where continuation of the liquidation process is no longer warranted.

4. Prescribed Forms to Be Notified Through Circulars

A significant procedural change introduced by the amendments relates to prescribed forms under the Regulations.

Instead of specifying forms directly within the Regulations, the amended framework provides that relevant forms shall be:

• Notified by the IBBI through circulars; and
• Updated from time to time as required

This approach provides greater flexibility in modifying procedural requirements without necessitating formal amendments to the Regulations.

5. Objective of the Amendments

The amendments seek to improve efficiency, transparency and stakeholder participation in voluntary liquidation proceedings.

By introducing structured provisions for claims management, communication of claim decisions and termination of proceedings, while allowing procedural forms to be updated through circulars, IBBI aims to streamline the voluntary liquidation framework and enhance regulatory responsiveness.

Click Here To Read The Full Notification