IBBI’s Circular dated 18 November 2025 introduces heightened due-diligence duties for Resolution Professionals under Section 29A of the IBC. The directive mandates strict verification of eligibility, documentation of findings, and compulsory placement of a detailed compliance note before the CoC, reinforcing transparency and reducing post-approval litigation in CIRP.

The IBBI’s 17 November 2025 Discussion Paper proposes mandatory minimum shareholding requirements for directors and partners of Insolvency Professional Entities, aiming to strengthen governance, accountability, and professional independence across India’s insolvency ecosystem.

The Supreme Court ruled that Cumulative Redeemable Preference Shares (CRPS) issued in satisfaction of past dues are share capital and not financial debt, as their redemption is restricted under Section 55 of the Companies Act. With no default occurring, the CRPS holder lacked standing to initiate proceedings under Section 7 of the IBC.

The Supreme Court directed that a pending IBC appeal be transferred from the NCLAT Chennai Bench to the NCLAT Principal Bench to ensure fair adjudication, clarifying that allegations of attempted judicial influence would be addressed separately at the administrative level by the Chief Justice of India.

The NCLAT ruled that the statutory first charge created under Section 48 of the GVAT Act constitutes a security interest under the IBC, entitling the State Tax Department to priority distribution for undistributed amounts even after approval of the resolution plan.

The IBBI has proposed sweeping reforms to standardise valuation practices under the IBC, including uniform reporting formats, harmonised standards, recognition of intangibles and synergies, and a streamlined valuer appointment system.

The Allahabad High Court held that disputes relating to the restoration of a cancelled lease essential for the Corporate Debtor’s resolution process fall within the NCLT’s exclusive jurisdiction under Section 60(5) of the IBC, rendering writ challenges non-maintainable.

The Gujarat High Court ruled that possession disputes during liquidation fall exclusively under the NCLT’s jurisdiction and writ petitions against such orders are non-maintainable.

The Bombay High Court ruled that consumer or recovery proceedings initiated during the IBC moratorium are void once a resolution plan is approved under Section 31 of the Code.

NCLAT clarified that a mere request for pass over cannot be treated as waiver of oral hearing and directed that the principles of natural justice must be strictly upheld in adjudicatory proceedings.