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

Regulation 44. Completion of liquidation

(1)

¹⁰⁶[The liquidator shall liquidate the corporate debtor within a period of ¹⁰⁷[one hundred and eighty days] from the liquidation commencement date, notwithstanding pendency of any application for avoidance of transactions under ¹⁰⁸[***] Part II of the Code, before the Adjudicating Authority or any action thereof: ¹⁰⁹[***]

(2)

If the liquidator fails to liquidate the corporate debtor within ¹¹⁰[one hundred and eighty days], he shall ¹¹¹[, on receiving an instruction from the committee under this regulation] make an application to the Adjudicating Authority to continue such liquidation, along with a report explaining why the liquidation has not been completed and specifying the additional time that shall be required for liquidation. ¹¹²[Clarification: It is clarified that the liquidator shall continue to discharge his responsibilities under the liquidation process, till the application for extension is decided by the Adjudicating Authority.] ¹¹³[Explanation.- In relation to the liquidation processes commenced prior to the commencement of the ¹¹⁴[Insolvency and Bankruptcy Board of India (Liquidation Process) (Fourth Amendment) Regulations, 2026], the requirements of this regulation as existing before such commencement, shall apply.]

¹⁰⁶ Substituted by Notification No. IBBI/2019-20/GN/REG047 dated 25th July, 2019 (w.e.f. 25-07-2019). Prior to substitution it stood as under: “The liquidator shall liquidate the corporate debtor within a period of two years.”.

¹⁰⁷ Substituted by Notification No. IBBI/2026-27/GN/REG151, dated 01st June, 2026 (w.e.f. 02-06-2026). Before substitution, the words stood as under:- “one year”.

¹⁰⁸ Omitted by Notification No. IBBI/2021-22/GN/REG079, dated 30th September, 2021 (w.e.f. 30-09-2021).

¹⁰⁹ Omitted by Notification IBBI/2022-23/GN/REG094, dated 16th September, 2022 (w.e.f. 16-09-2022).

¹¹⁰ Substituted by Notification No. IBBI/2026-27/GN/REG151, dated 01st June, 2026 (w.e.f. 02-06-2026). Before substitution, the words stood as under:- “[one year]”.

¹¹¹ Inserted by Notification No. IBBI/2026-27/GN/REG151, dated 01st June, 2026 (w.e.f. 02-06-2026).

¹¹² Inserted by Notification No. IBBI/2026-27/GN/REG151, dated 01st June, 2026 (w.e.f. 02-06-2026).

¹¹³ Inserted by Notification No. IBBI/2022-23/GN/REG082, dated 28th April, 2022 (w.e.f. 28-04-2022).

¹¹⁴ Substituted by Notification No. IBBI/2026-27/GN/REG151, dated 01st June, 2026 (w.e.f. 02-06-2026). Before substitution, the words stood as under:- “Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2019”. ¹¹⁵[44A. Treatment of avoidance of transaction. The liquidator shall, ¹¹⁶[with the approval] of the ¹¹⁷[***] committee, provide in the application along with the final report filed under regulation 45 for the manner in which proceedings in respect of avoidance transactions, if any, under Chapter III or fraudulent or wrongful trading under Chapter VI of Part II of the Code, will be pursued after the dissolution or closure of liquidation process and the manner in which the proceeds, if any, from such proceedings shall be distributed.]

Regulation 44

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