2.5.47:Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016
The following Table presents a model timeline of liquidation process of a corporate debtor from the liquidation commencement date, assuming that the process does not include compromise or arrangement under section 230 of the Companies Act, 2013 (18 of 2013) or sale under regulation 32A:
Model Timeline for Liquidation Process
| Sl. No. | Section / Regulation | Description of Task | Norm | Latest Timeline (Days) |
| 1 | Section 33 and 34 | Commencement of liquidation and appointment of liquidator | LCD | 0 = T |
| 2 | Section 33 (1) (b) (ii) / Reg. 12 (1, 2, 3) | Public announcement in Form B | Within 5 days of appointment of liquidator. | T + 5 |
| 3 | Reg. 35 (2) | Appointment of registered valuers | Within 7 days of LCD | T + 7 |
| 3A. (Inserted vide the Insolvency and Bankruptcy Board of India (Liquidation Process) (Second Amendment) Regulations, 2022 dated 16.09.2022.) | Reg. 31A(6) | First meeting of SCC | Within 7 days of LCD | T+7 |
| 4 | Section 38 (1), Reg. 17, 18, 19, 20 and 21A (substituted vide the Insolvency and Bankruptcy Board of India (Liquidation Process) (Third Amendment) Regulations, 2020 dated 05.08.2020.) | Submission of claims; | Within 30 days of LCD | T + 30 |
| Intimation of decision on relinquishment of security interest | ||||
| 5 | Section 38 (5) | Withdrawal/ modification of claim | Within 14 days of submission of claim | T + 44 |
| 6 | Reg. 30 | Verification of claims received under regulation 12(2)(b) | Within 30 days from the last date for receipt of claims | T + 60 |
| 7 | Reg. 31A | Constitution of SCC | Within 60 days of LCD | T + 60 |
| 8 | Section 40 (2) | Intimation about decision of acceptance/ rejection of claim | Within 7 days of admission or rejection of claim | T + 67 |
| 9 | Reg. 31 (2) | Filing the list of stakeholders | Within 45 days from the last date of receipt of claims | T + 75 |
| 10 | Section 42 | Appeal by a creditor against the decision of the liquidator | Within 14 days of receipt of such decision | T + 81 |
| 11 | Reg. 13 | Preliminary report to the AA | Within 75 days of LCD | T + 75 |
| 12 | Reg. 34 | Asset memorandum | Within 30/75 | T + 30/75 |
| 13 | Reg. 15 (1), (2), (3), (4) and (5), and 36 | Submission of progress reports to AA; Asset Sale report to be enclosed with every Progress Report, if sales are made | First progress report | Q1 + 15 |
| Q-2 | Q2 + 15 | |||
| Q-3 | Q3 + 15 | |||
| Q-4 | Q4 + 15 | |||
| FY: 1 Audited accounts of liquidator's receipt & payments for the financial year | 15th April | |||
| 14 | Proviso to Reg. 15 (1) | Progress report in case of cessation of liquidator | Within 15 days of cessation as liquidator | Date of cessation + 15 |
| 15 | Reg. 37 (2, 3) | Information to secured creditors | Within 21 days of receipt of intimation from secured creditor | Date of intimation + 21 |
| 16 | Reg. 42 (2) | Distribution of the proceeds to the stakeholders | Within 3 months from the receipt of amount | Date of Realisation + 90 |
| 17 | Reg.10 (1) | Application to AA for Disclaimer of onerous property | Within 6 months from the LCD | T + 6 months |
| 18 | Reg.10 (3) | Notice to persons interested in the onerous property or contract | At least 7 days before making an application to AA for disclaimer (substituted vide the Insolvency and Bankruptcy Board of India (Liquidation Process) (Third Amendment) Regulations, 2020 dated 05.08.2020.) | |
| 19 | Reg. 44 | Liquidation of corporate debtor. | Within one year | T + 365 |
| 20 | Reg. 46 | Deposit the amount of unclaimed dividends and undistributed proceeds (substituted vide the Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2020 dated 06.01.2020) | Before submission of application under sub-regulation (3) of regulation 45 (substituted vide the Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2020 dated 06.01.2020) | |
| 21 | Sch-1 Sl. No 12 | Time period to H1 bidder to provide balance sale consideration | Within 90 days of the date of invitation to provide the balance amount. |
[AA: Adjudicating Authority, LCD: Liquidation Commencement Date, SCC: Stakeholders’ Consultation Committee]
Subject to the provisions of the Code, the period of lockdown imposed by the Central Government in the wake of COVID-19 outbreak shall not be counted for the purposes of computation of the time-line for any task that could not be completed due to such lockdown, in relation to any liquidation process.
Inserted 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
Inserted vide IBBI (Liquidation Process) (Second Amendment) Regulations, 2020 dated 17.04.2020. To view the notification, Click Here.
IBBI (Liquidation Process) (Second Amendment) Regulations, 2020 dated 17.04.2020
Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2019 dated 25.07.2019
Insolvency and Bankruptcy Board of India (Liquidation Process) (Third Amendment) Regulations, 2020 dated 05.08.2020
The Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2020 dated 06.01.2020
Applicability of the Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2019 notified on 25th July, 2019