Regulation 7

(1) A liquidator may appoint professionals 19 [with the approval of the committee] to assist him in the discharge of his duties, obligations and functions for a reasonable remuneration and such remuneration shall form part of the liquidation cost. (2) The liquidator shall not appoint a professional under sub-regulation (1) who is his relative, is a related party of the corporate debtor or has served as an auditor to the corporate debtor in the five years preceding the liquidation commencement date. (3) A professional appointed or proposed to be appointed under sub-regulation (1) shall disclose the existence of any pecuniary or personal relationship with any of the 18 Subs by Notification No. IBBI/2019-20/GN/REG053, dated 6th January, 2020 (w.e.f. 06-01-2020). Prior to substitution it stood as under: “Register of unclaimed dividends and undistributed properties deposited in accordance with Regulation 45; and”. 19 Inserted by Notification No. IBBI/2026-27/GN/REG151, dated 01st June, 2026 (w.e.f. 02-06-2026).

stakeholders, or the concerned corporate debtor as soon as he becomes aware of it, to the liquidator. 8. 20 [Committee of creditors. (1) The committee of creditors constituted under section 21 shall continue to function during the liquidation process: Provided that a secured creditor who has not relinquished his security interest under section 52 shall not be part of the committee. Provided further that with reference to Explanation in clause (b) in sub-section (1) of section 53, the creditor whose value of debt remains and is considered as unsecured creditor shall be a part of the committee for the remaining portion of debt and shall have the voting rights to the value of the remaining debt. Explanation: For the purposes of Explanation in clause (b) in sub-section (1) of section 53, the value of security interest shall be the liquidation value determined in accordance with Regulation 35. (2) 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 committee under liquidation proceedings: Provided that the first meeting of the committee shall be convened within seven days of liquidation commencement date. (3) In every meeting, the liquidator shall present to the committee: (a) the actual liquidation cost along with reasons for exceeding the estimated cost, if any; (b) the consolidated status of all the legal proceedings; and (c) the progress made in the process. (4) The liquidator shall not undertake the following without the prior approval of the committee: (a) appointment and remuneration of professionals appointed under regulation 7; (b) fees of the liquidator; (c) liquidation costs; (d) valuation under sub- regulation (2) of regulation 35; 20 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:- “8. Consultation with stakeholders. (1) The stakeholders consulted under section 35(2) shall extend all assistance and cooperation to the liquidator to complete the liquidation of the corporate debtor. (2) The liquidator shall maintain the particulars of any consultation with the stakeholders made under this Regulation, as specified in Form A of Schedule II.”

(e) continuation or institution of any suits or legal proceedings by or against the corporate debtor; (f) extension of payment of balance sale consideration as provided in clause (12) of Para 1 of Schedule I, beyond ninety days, to be disclosed in the auction notice; (g) appropriate arrangement for pursuing any suit or proceedings with regard to distribution of proceeds in reference to sub-section (1B) of section 54; (h) any other matter or activity relating to the liquidation process except those listed in sub-regulation (5), as may be decided by the committee. (5) The liquidator shall not undertake the following without the prior approval of the committee obtained by a voting share of not less than sixty-six per cent., in matters relating to: (a) sale under regulation 32, including manner of sale, pre-bid qualifications, reserve price, marketing strategy and auction process; (b) the manner in which proceedings in respect of preferential transactions, undervalued transaction, extortionate credit transaction or fraudulent or wrongful trading, if any, shall be pursued after dissolution of the corporate debtor and the manner in which the proceeds, if any, from these proceedings shall be distributed; and (c) assignment of not readily realisable assets. (6) The committee shall have access to all relevant records and information as may be required by the committee. (7) The authorised representative, appointed during the corporate insolvency resolution process, shall continue to act as the authorised representative of such creditors in the liquidation process and the provisions of sub-regulations (3A) to (12) of regulation 16A of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 shall apply mutatis mutandis.