IBBI Issues Second Guidelines for Preparation of Panel of Insolvency Professionals for Appointments from January to June 2026
- REEDLAW
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REEDLAW Legal News Network reports: In a pivotal regulatory development, the Insolvency and Bankruptcy Board of India issued fresh guidelines on 21 November 2025, prescribing the preparation and administration of a structured, pre-approved panel of Insolvency Professionals for appointments before the Adjudicating Authorities. The revised framework, to remain effective from 1 January 2026 to 30 June 2026, superseded the earlier guidelines and introduced a streamlined, zone-wise mechanism to ensure the timely identification, verification, and availability of eligible professionals for appointments such as Interim Resolution Professionals, Resolution Professionals, Liquidators, and Bankruptcy Trustees.
The new framework formalised eligibility conditions, sector disclosures, AFA validity requirements, and sorting criteria to ensure uniformity and minimise delays historically faced at the adjudicating forums owing to availability checks and case-load disparities. By establishing a common panel categorised across four zones and allowing Insolvency Professional Entities to operate pan-India, the Board reiterated its emphasis on fairness, transparency, and administrative predictability in appointments under the Insolvency and Bankruptcy Code, 2016. The Guidelines further introduced strict norms on deemed acceptance of assignments and disciplinary consequences for unjustified withdrawal, reinforcing the professional discipline expected from the insolvency ecosystem.
Under several provisions of the IBC—such as Sections 16(4), 34(6), 97(4), 98(3), 125(4), 146(3), and 147(3)—IBBI is mandated to recommend the name of an IP upon receiving a reference from the NCLT or DRT. Similarly, Rule 8(2) of the Personal Guarantors Rules, 2019 (both insolvency and bankruptcy rules) authorises the Board to share a panel of eligible IPs with the Adjudicating Authority for appointment as Resolution Professionals or Bankruptcy Trustees.
In practice, delays often arose during the appointment stage due to the time taken to verify the eligibility and availability of IPs. The Board therefore found it essential to prepare a pre-validated, structured panel of IPs in advance and make it readily available to the NCLT and DRT. The 2025 Second Guidelines institutionalise this process by prescribing eligibility standards, submission formats, sorting criteria, and conditions for engagement.
1. Short Title and Commencement
These guidelines are officially titled:
Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees (Recommendation) (Second) Guidelines, 2025.
The panel created under these guidelines shall remain valid from:
1 January 2026 to 30 June 2026.
2. Eligibility Conditions for Insolvency Professionals
An Insolvency Professional is eligible for inclusion in the panel only when the following criteria are satisfied:
a. No Disciplinary Proceedings Pending
The IP must not be subject to any pending disciplinary action, whether initiated by IBBI or any Insolvency Professional Agency (IPA).
b. No Conviction in the Past Three Years
The IP should not have been convicted by any competent court during the preceding three years.
c. Submission of Expression of Interest (EOI)
An IP must submit their consent and EOI in Form A, explicitly agreeing to act as IRP, RP, Liquidator, or Bankruptcy Trustee for any corporate or individual debtor, as appointed by the NCLT or DRT.
d. Valid Authorisation for Assignment (AFA)
The IP must hold a valid AFA covering the entire duration of the panel period (i.e., valid up to and beyond 30 June 2026).
3. Expression of Interest (Form A)
The Board will invite EOIs by email, and IPs must respond in the specified Form A by 22 December 2025. Submission of an EOI constitutes unconditional consent to accept appointments in any insolvency, liquidation, or bankruptcy matter.
Key requirements in Form A include:
IP’s registration details
AFA validity
Number of ongoing and completed assignments across categories
Sectors handled (selected from a dropdown list)
Disclosure of convictions, suspensions, or pending disciplinary matters
Declaration affirming the correctness of details and compliance with guidelines
The Board will prepare and submit the panel to the Adjudicating Authority by 31 December 2025.
4. Structure of the Panel
Common Panel
A single, consolidated panel will be created fo appointment as IRP, RP, Liquidator, and Bankruptcy Trustee.
Zone-wise and Bench-wise Distribution
The panel will be categorised geographically into four zones (North, South, East, West), based on the IP’s registered office location. This determines their eligibility for appointments by corresponding NCLT/DRT benches.
Special Provision for IPEs
Insolvency Professional Entities (IPEs acting as IPs) are eligible across all NCLT benches, and thus do not fall under the zone-based restriction.
5. Sorting of Eligible IPs
To promote equitable allocation of assignments, the panel will sort IPs based on:
a. Volume of Ongoing Assignments
IPs with fewer ongoing assignments receive priority.
b. Tie-breaking Rule
Where two or more IPs have the same score, the IP with the earlier IBBI registration date will be ranked higher.
6. Conditions Applicable to Insolvency Professionals
a. Deemed Acceptance
Inclusion in the panel amounts to deemed acceptance of any appointment made by the NCLT or DRT.
b. No Withdrawal Without Permission
An IP cannot refuse or withdraw from an assignment unless permitted by the tribunal or IBBI. Unjustified refusal may result in six months’ removal from the panel.
c. No Surrender of Registration or AFA
IPs are expected not to surrender registration, IPA membership, or AFA during the panel period.
d. Appointment Discretion
NCLT or DRT may appoint any IP from the panel at their discretion.
e. Non-panel Appointments
The tribunals may also request IBBI to recommend a name from outside the panel, where necessary.
7. Repeal and Savings
These Guidelines repeal the earlier 2025 Guidelines issued on 27 May 2025. All actions taken under the previous guidelines continue to remain valid.
Annexure: Zone-wise Mapping of NCLT Benches
The guidelines annex a detailed mapping of IP locations to NCLT/DRT benches across North, West, East, and South Zones. For example:
An IP registered in Surat (Gujarat) falls under the West Zone and is eligible for appointment by NCLT Ahmedabad, Indore, and Mumbai benches.
The zonal restriction does not apply to IPEs.
The Annexure lists all states and Union Territories distributed across the four zones to ensure clarity in jurisdictional allocation.
Conclusion
The Second Guidelines, 2025, represent a structured, uniform, and transparent mechanism for preparing a pre-approved panel of Insolvency Professionals for appointments under the IBC. By standardising eligibility, ensuring AFA validity, mandating sector disclosures, and introducing rational sorting criteria, the Board aims to enhance efficiency and reduce delays in insolvency proceedings. The emphasis on zone-wise availability of IPs and deemed acceptance of appointments ensures timely initiation of processes—strengthening the overall insolvency ecosystem and fulfilling the legislative objective of rapid resolution under the Code.
Download the IBBI Guidelines (Second) dated 21 November 2025
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