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

42. Distribution.

(1) Subject to the provisions of section 53, the liquidator shall not commence distribution before the list of stakeholders  and the asset memorandumOmitted vide Insolvency and Bankruptcy Board of India (Liquidation Process) (Fourth Amendment) Regulations, 2026 dated 01.06.2026. To view the notification, Click Here has been filed with the Adjudicating Authority.

(2) The liquidator shall distribute the proceeds from realization within six months ninety daysSubstituted vide IBBI (Liquidation Process) (Amendment) Regulations, 2019 dated 25.07.2019 applicable only to liquidation processes, which commenced on or after 25th July, 2019. To view the notification,Click Here fifteen daysSubstituted vide Insolvency and Bankruptcy Board of India (Liquidation Process) (Fourth Amendment) Regulations, 2026 dated 01.06.2026. To view the notification, Click Here from the receipt of the amount to the stakeholders.

(3) The insolvency resolution process costs, if any, and the liquidation costs shall be deducted before such distribution is made.