IBBI Introduces Regulation on Non-Submission of Repayment Plan by Personal Guarantors [Read Notification]

The Insolvency and Bankruptcy Board of India ( IBBI ) has notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) (Amendment) Regulations, 2025, introducing regulation on Non-submission of repayment plan by personal guarantors.

These regulations may be called the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) (Amendment) Regulations, 2025.

Also read: Madras HC Upholds Circular Allowing Creditor to Recommend Resolution Professional in Application u/s 95 of IBC

How to Audit Public Charitable Trusts under the Income Tax Act Click Here

The amendment inserts Regulation 17B into the existing IBBI (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019. This new regulation provides a structured course of action for the Resolution Professional (RP) in scenarios where the personal guarantor does not prepare a repayment plan as contemplated under Section 105 of the Insolvency and Bankruptcy Code, 2016.

In accordance with the newly enacted Regulation 17B, the Resolution Professional must submit an application to the Adjudicating Authority with the consent of the creditors if the debtor does not submit a repayment plan under Section 105. This application must formally inform the Authority that the repayment plan was not submitted and request the necessary guidance for the remaining stages.

Also read: IBBI suspends liquidator for misconduct

AMENDMENT

In the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019, after regulation 17A, the following regulation shall be inserted, namely: –

“17B. Non-submission of repayment plan

Where no repayment plan has been prepared by the debtor under section 105 of the Code, the resolution professional shall file an application, with the approval of creditors, before the Adjudicating Authority intimating the non-submission of a repayment plan and seek appropriate directions.”Also read: Outgoing Liquidator Entitled to Minimum Fee of Rs. 2 Lakh as Per IBBI Regulations: NCLT

Complete practical guide to Drafting Commercial Contracts Click here

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates