IBBI Amends Regulation 31 of the Liquidation Process Regulations

The Insolvency and Bankruptcy Board of India (“IBBI”) has amended Regulation 31 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016,¹ through Notification No. IBBI/2026-27/GN/REG154 dated September 22, 2026. The amendment revises the procedure for modifying entries in the liquidator’s list of stakeholders. It came into force on September 22, 2026.  

Regulation 31 deals with the preparation and filing of the list of stakeholders in a liquidation proceeding. The liquidator prepares the list based on claims submitted and accepted under the Regulations. The list records the amount of the admitted claim, whether the debt/dues are secured or unsecured, the stakeholder’s details, and the status of the proof of claim. The list is filed with the Adjudicating Authority within thirty days from the last date for receipt of claims.

The September amendment concerns what happens after the list has been filed and the liquidator subsequently receives information that warrants modification.

Revised Position Under Regulation 31

Before the amendment, Regulation 31 contained two separate provisions dealing with the modification of the stakeholder list. 

Under the earlier sub-regulation (3), where a liquidator came across additional information warranting modification of an entry, the liquidator could apply to the Adjudicating Authority for modification. The entry was then to be modified in the manner directed by the Adjudicating Authority.

The earlier sub-regulation (4) separately dealt with the modification of an entry pursuant to an order passed in the course of disposing of an appeal under Section 42 of the Code.

The amendment substitutes these provisions with a single sub-regulation (3).² The revised provision states that a liquidator may modify an entry in the list of stakeholders when the liquidator becomes aware of additional information warranting such modification. The liquidator must then intimate the Adjudicating Authority regarding that modification within thirty (30) days of the modification.

The amended provision expressly permits the liquidator to modify and places him under a thirty-day obligation to intimate the Adjudicating Authority.

Stakeholder List and Subsequent Information

A stakeholder list is prepared from the claims admitted during liquidation and may change as further information becomes available. The Regulations already address circumstances in which the list may need to be updated. For example, where a creditor assigns or transfers a debt during the liquidation process, the parties must provide the liquidator with details of the transfer, after which the liquidator must modify the list of stakeholders in accordance with Regulation 31.  

The amended Regulation 31 provides the procedural basis for such modifications where additional information warrants a change. The provision does not specify an exhaustive category of information that would justify modification. The assessment of whether the information warrants a change, therefore, remains with the liquidator, based on the material available in the liquidation process.

The amendment also does not alter the basic contents of the stakeholder list. Regulation 31 continues to require that the list be prepared category-wise and that it record the relevant claim, security status, stakeholder details, and particulars of proof of claim.

Thirty-Day Intimation to the Adjudicating Authority

The key procedural requirement introduced by the amendment is the requirement to intimate the Adjudicating Authority within thirty days of the modification.

The period runs from the date on which the modification is made. This creates a specific compliance point for the liquidator each time an entry is modified based on additional information.

For liquidators handling ongoing proceedings, the practical step is to maintain a clear record of when an entry is modified and ensure that the corresponding intimation is made within thirty days. The record should also allow the basis for the modification to be traced to the additional information received during the liquidation.

Effect on Appeals and Orders of the Adjudicating Authority

The earlier Regulation 31(4) specifically addressed modification of the stakeholder list in accordance with an order passed while disposing of an appeal under Section 42 of the Insolvency and Bankruptcy Code (IBC), 2016 (now omitted). That separate sub-regulation has been removed as part of the substitution.

The amended provision applies where the liquidator receives additional information that warrants a change. It does not expressly deal with modifications made pursuant to judicial or appellate directions. The provision should therefore be read in the context of the situation it specifically addresses. 

Conclusion

The September 22, 2026, amendment to Regulation 31 changes the procedure for modifying entries in the list of stakeholders where additional information comes to the liquidator’s notice. 

The liquidator may now modify the relevant entry and must intimate the Adjudicating Authority within thirty days of that modification.

For liquidation professionals, the immediate compliance point is the new time-bound intimation requirement.

Please find the INSOLVENCY AND BANKRUPTCY BOARD OF INDIA (LIQUIDATION PROCESS) REGULATIONS, 2016, [AMENDED UPTO 22-09-2026]

Citations

1. Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, reg. 31. ↩︎
2. Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, reg. 31(3). ↩︎

Expositor(s): Adv. Stephin Sinu Oommen