IBBI Mandates CoC Recommendation for Liquidator Appointment

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  • Last Updated on 4 June, 2026

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Liquidator Appointment Recommendation by CoC

Notification F. No. IBBI/2026-27/GN/REG151, Dated 01.06.2026

The Insolvency and Bankruptcy Board of India (IBBI) has amended the Liquidation Process Regulations, 2016 by inserting a new provision relating to the recommendation of a liquidator by the Committee of Creditors (CoC).

The amendment seeks to provide a structured mechanism for the appointment of liquidators and strengthen creditor participation in the liquidation process.

1. New Regulation on Recommendation of Liquidator by CoC

A new regulation titled “Recommendation of Liquidator by Committee of Creditors” has been inserted in the Liquidation Process Regulations.

The provision lays down the procedure to be followed by the Committee of Creditors before commencement of liquidation proceedings.

2. CoC Required to Recommend a Liquidator

Under the newly inserted regulation, the Committee of Creditors (CoC) is required to recommend the name of an insolvency professional for appointment as the liquidator.

The recommendation must be made before the passing of the liquidation order by the Adjudicating Authority.

3. Selection From Board-Approved Panel

The insolvency professional recommended by the CoC must be selected from the panel of insolvency professionals prepared by the IBBI for this purpose.

This requirement is intended to ensure that appointments are made from a pool of professionals identified and maintained under the regulatory framework.

4. Recommendation Prior to Liquidation Order

The regulation specifically requires the recommendation process to be completed prior to the issuance of the liquidation order.

This is expected to facilitate smoother transition from the resolution phase to liquidation and reduce delays in appointment of a liquidator.

5. Objective of the Amendment

The amendment aims to enhance transparency, improve efficiency in the appointment process and provide a greater role to creditors in the selection of liquidators.

By requiring the CoC to recommend a liquidator from a Board-approved panel before the liquidation order is passed, IBBI seeks to ensure timely appointment of qualified professionals and strengthen the overall liquidation framework under the Insolvency and Bankruptcy Code, 2016.

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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