IBBI (Liquidation Process) Regulations, 2016

Asset sale methods, stakeholder consultation committee and the liquidator's reporting discipline.

Sale methods

The liquidator may sell assets through auction (the default method), private sale (only in specified circumstances — perishable assets, assets likely to deteriorate, or where the CoC/stakeholders' consultation committee agrees a better realisation is achieved), or as a going concern (sale of the business as a whole, increasingly preferred where it preserves more value than piecemeal liquidation).

Stakeholder Consultation Committee (SCC)

A 2019 amendment introduced the SCC — representing all classes of stakeholders (not just financial creditors) — which the liquidator must consult (though not necessarily follow) on key process decisions, partly responding to criticism that liquidation-stage governance was too liquidator-centric.

Reporting timeline

The liquidator files a preliminary report, asset memorandum, and periodic progress reports with NCLT/IBBI — liquidation is expected to complete within 1 year (2 years for a going-concern sale process), a self-imposed regulatory timeline (not a statutory hard limit like CIRP's 330 days).

Educational summary of the Insolvency and Bankruptcy Code, 2016, its Regulations and case law as understood at review date 2026-07-18. Not a substitute for the official Code/Regulations text, current NCLT/NCLAT/Supreme Court rulings, or professional advice on a specific matter.

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