2.5.32:Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016

32. Sale of Assets, etc.Substituted vide the Insolvency and Bankruptcy Board of India (Liquidation Process) (Second Amendment) Regulations, 2018 dated 22.10.2018. To view the Notification, Click Here 

The liquidator may sell-

(a) an asset on a standalone basis;

(b) the assets in a slump sale;

(c) a set of assets collectively orSubstituted vide Insolvency and Bankruptcy Board of India (Liquidation Process) (Second Amendment) Regulations, 2025 date 14th October 2025. To view the notification Click Here

(d) the assets in parcels .Substituted vide Insolvency and Bankruptcy Board of India (Liquidation Process) (Second Amendment) Regulations, 2025 date 14th October 2025. To view the notification Click Here

(e)Omitted vide Insolvency and Bankruptcy Board of India (Liquidation Process) (Second Amendment) Regulations, 2025 date 14th October 2025. To view the notification Click Here the corporate debtor as a going concern; or

(f)Omitted vide Insolvency and Bankruptcy Board of India (Liquidation Process) (Second Amendment) Regulations, 2025 date 14th October 2025. To view the notification Click Here the business(s) of the corporate debtor as a going concern:

Provided that where an asset is subject to security interest, it shall not be sold under any of the clauses (a) to (f) unless the security interest therein has been relinquished to the liquidation estate.

Clarification :Inserted vide Insolvency and Bankruptcy Board of India (Liquidation Process) (Fourth Amendment) Regulations, 2026 dated 01.06.2026. To view the notification, Click Here It is hereby clarified that the liquidator shall not sell any immovable and movable property or actionable  claims  of  the  corporate  debtor  in liquidation  to  any  person  who  is  ineligible  to  be  a  resolution applicant under section 29A.

32. Manner of sale.

The liquidator may

(a) sell an asset on a standalone basis; or

(b) sell

(i) the assets in a slump sale,

(ii) a set of assets collectively, or

(iii) the assets in parcels.

32A. Sale as a going concern.Omitted vide Insolvency and Bankruptcy Board of India (Liquidation Process) (Second Amendment) Regulations, 2025 date 14th October 2025. To view the notification Click Here
(1) Where the committee of creditors has recommended sale under clause (e) or (f) of regulation 32 or where the liquidator is of the opinion that sale under clause (e) or (f) of regulation 32 shall maximise the value of the corporate debtor, he shall endeavour to first sell under the said clauses.

(2) For the purpose of sale under sub-regulation (1), the group of assets and liabilities of the corporate debtor, as identified by the committee of creditors under sub-regulation (2) of regulation 39C of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 shall be sold as a going concern.

(3) Where the committee of creditors has not identified the assets and liabilities under sub-regulation (2) of regulation 39C of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, the liquidator shall identify and group the assets and liabilities to be sold as a going concern, in consultation with the consultation committee.

(4)Substituted vide IBBI (Liquidation Process) (Second Amendment) Regulations, 2022 dated 16.09.2022. To view the notification,Click HereThe liquidator may sell the assets of the corporate debtor under clause (e) of regulation 32 exclusively only at the first auction.

Explanation:Inserted vide the Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2024 dated 12.02.2024. To view the notification, Click here. For the purpose of this sub-regulation, it is hereby clarified that the sale of the corporate debtor under clause (e) of regulation 32 cannot be offered as the only option for bidders after the first auction.

(5)Inserted vide the Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2024 dated 12.02.2024. To view the notification, Click here. Where the liquidator is of the opinion that it is viable to run the corporate debtor as a going concern, he shall consult the consultation committee and only on its advice he shall run the affairs of the corporate debtor as a going concern to the extent approved.

(4) If the liquidator is unable to sell the corporate debtor or its business under clause (e) or (f) of regulation 32 within ninety days from the liquidation commencement date, he shall proceed to sell the assets of the corporate debtor under clauses (a) to (d) of regulation 32

32 B. Inserted vide IBBI (Liquidation Process) (Second Amendment) Regulations, 2022 dated 16.09.2022. To view the notification,Click HereConduct of meetings of the consultation committeeOmitted vide Insolvency and Bankruptcy Board of India (Liquidation Process) (Fourth Amendment) Regulations, 2026 dated 01.06.2026. To view the notification, Click Here

Save as otherwise provided under Chapter III of Part II of the Code and these Regulations, the provisions of regulations 18 to 26 of Chapter VI and Chapter VII of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 shall apply mutatis mutandis to meetings of the consultation committee under liquidation proceedings.