The Insolvency and Bankruptcy Board of India (IBBI) has put in place a formal mechanism for ending voluntary liquidation proceedings before a company is dissolved. The latest changes also tighten the claims process by requiring stakeholders to update claims that have been partly or fully satisfied and by obligating liquidators to explain why any claim has been rejected.
The changes have been introduced through the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Second Amendment) Regulations, 2026, which came into force on June 1.
A significant feature of the amendments is the insertion of Regulation 42, which lays down the procedure for terminating voluntary liquidation proceedings under the recently…