Resolution Professionals Must Appoint Valuers Within 3 Days Under Amended IBBI Pre-Packaged Insolvency Norms

The Insolvency and Bankruptcy Board of India (IBBI) has amended its pre-packaged insolvency rules to require resolution professionals to appoint registered valuers within three days of taking charge, while allowing the consultation committee to require two sets of valuers if reasons are recorded in writing.

The changes have been introduced through the Insolvency and Bankruptcy Board of India (Pre-Packaged Insolvency Resolution Process) (Second Amendment) Regulations, 2026, notified on May 19.

The amended rules require the resolution professional to appoint a set of registered valuers within three days of appointment to determine the corporate debtor's fair value and liquidation value.

However, the consultation committee may decide, for reasons recorded in writing, that two sets of registered valuers should be appointed.

The amendments also introduce eligibility restrictions for registered valuers. A related party of the corporate debtor cannot be appointed as a registered valuer. The disqualification also applies to any person who served as an auditor of the corporate debtor at any time during the five years preceding the commencement of the pre-packaged insolvency resolution process.

Further, a partner or director of an insolvency professional entity of which the resolution professional is a partner or director is barred from appointment. The same restriction extends to relatives of the resolution professional and relatives of such partners or directors.

The IBBI has also revised the valuation methodology under Regulation 39.

Where one set of valuers is appointed, the fair value submitted by the coordinating valuer will be treated as the fair value of the corporate debtor. Where two sets are appointed, the average of the two fair value estimates submitted by the coordinating valuers will be taken as the fair value.

For liquidation value, where one set of valuers is appointed, the aggregate of liquidation value estimates submitted by registered valuers for each asset class will be treated as the liquidation value. Where two sets are appointed, the aggregate of the averages of the two estimates for each asset class will be considered the liquidation value.

The amended regulations came into force on May 19, 2026, the date of publication in the Official Gazette.