The Insolvency and Bankruptcy Board of India (IBBI) has from the public on proposed changes to the corporate insolvency resolution process (CIRP) aimed at improving and ensuring the integrity of amendments.
The proposed changes are recording the deliberations of the committee of creditors (CoC) on the eligibility of the resolution applicant, enhancing disclosures of resolution plans as well as invitation and submission of such plans through electronic platforms. This is a parliamentary committee recommendation and follows the success of a similar requirement for the liquidation process.
Judicial pronouncements, stakeholder feedback and practical experiences have informed the requirement of continuous refinement of the process.
Currently, there is no provision that requires the CoC to formally record its deliberations on the eligibility of resolution applicants. Recording deliberations is expected to encourage the CoC to discuss the eligibility of each applicant, reduce litigation and enhance transparency upholding the statute’s intention of promoting fair and lawful participation. Details of the deliberation will be recorded in the minutes of the meetings.
To prevent any potential abuse and ensure informed decisions by the CoC, all prospective resolution applicants would be required to additionally file a statement of beneficial ownership and an affidavit of eligibility.
These details would include all natural persons who own or control the prospective resolution applicant along with shareholding structure and jurisdiction of each entity.
The public can submit comments by 27 August 2025 on the following the steps provided in the .
