IBBI Releases Discussion Paper On Strengthening CoC's Oversight Under The CIRP Regulations, 2016

The Insolvency and Bankruptcy Board of India ("IBBI"), on 16.02.2026, released a Discussion Paper on strengthening the Committee of Creditors ("CoC") oversight and procedural clarity¹ ("Discussion Paper") under the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 ("CIRP Regulations").

The Discussion Paper proposes several amendments to the CIRP Regulations, with an intent to strengthen creditor oversight, improve procedural discipline and reinforce value maximisation. The key amendments proposed are as follows:

1. Strengthening recording of CoC deliberations while approving resolution plans: The Discussion Paper proposes to amend Regulation 39(3)(b) regarding the scope of matters that may be recorded as part of the CoC deliberations while evaluating resolution plans in Regulation 39(3)(b) of the CIRP Regulations, including the following: (a) feasibility and viability of each resolution plan; (b) expected recovery for creditors in comparison with the fair value and liquidation value; (c) adequacy of market discovery undertaken during Corporate Insolvency Resolution Process ("CIRP"); and (d) capability and credibility of the resolution applicant and the certainty of implementation of the resolution plan, including availability of funds. ii. Rationalisation of the framework for approval of CIRP costs and decision-making on continuation of operations of the corporate debtor as a going concern: The Discussion Paper proposes to substitute Regulation 31B of the CIRP Regulations which provides for the approval of committee for Insolvency Resolution Process costs ("IRP Costs"). The Discussion Paper proposes to: (a) limit the IRP costs to costs necessary for preservation and protection of the assets of the Corporate Debtor ("CD"); (b) maintenance of essential services; (c) compliance with applicable laws; and (d) minimum operations as are necessary to prevent value deterioration of the CD. Furthermore, the Resolution Professional ("RP") may incur costs from the insolvency commencement date for a period of 30 days or till the constitution of the CoC (whichever is earlier) and all such costs must be put before the committee of creditors for their approval. At the first meeting of the CoC, the RP must place a Going Concern Assessment Report by the RP, including the estimated income and expenditure arising from continuation of operations and material risks of value erosion arising from continuation or suspension of operations, based on which the CoC shall decide whether the operations of the CD shall be continued.
2. Clarification on the role of CoC in respect of the delayed claims: The Discussion Paper proposes to substitute Regulation 13(1C)(b) of the CIRP Regulations to expressly provide that all delayed claims categorised as acceptable by the RP shall be placed before the adjudicating authority, within one week of receipt of such claims, for condonation of delay and adjudication, and before the CoC only for its recommendation regarding their treatment in the resolution plan.
3. Exclusion of 'related' operational creditors from CoC: The Discussion Paper proposes to amend Regulation 16(2)(a) of the CIRP Regulations to expressly exclude related operational creditors from participation in the CoC constituted under Regulation 16 of the CIRP Regulations.

IBBI has invited public comments on the Discussion Paper before 10.03.2026 in the manner prescribed under the Discussion Paper.

Footnote

1. Discussion Paper on strengthening CoC's oversight and procedural clarity under the

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