IBBI Amends Valuation Framework Under CIRP | Liquidation | Pre-Pack Processes

The Insolvency and Bankruptcy Board of India (IBBI) has amended the Corporate Insolvency Resolution Process (CIRP) Regulations, Liquidation Process Regulations and Pre-Packaged Insolvency Resolution Process (PPIRP) Regulations relating to appointment and determination of registered valuers.

The amendments introduce changes concerning appointment of valuers in specified MSME cases and revise valuation determination methodology under the pre-pack insolvency framework.

1. Appointment of One Set of Valuers in Specified MSME Cases

Under the amended framework, in specified cases involving Micro, Small and Medium Enterprises (MSMEs), a single set of registered valuers may be appointed for valuation purposes.

The amendment seeks to simplify valuation procedures and improve process efficiency in eligible MSME insolvency matters.

2. Appointment of Two Valuers Subject to Recorded Reasons

The regulations further provide that appointment of two valuers in such specified MSME cases may still be undertaken where considered necessary.

However, reasons for appointing two valuers must be formally recorded.

This requirement is intended to ensure transparency and reasoned decision-making while balancing procedural flexibility with cost efficiency.

3. Amendments to Valuation Methodology Under Pre-Pack Framework

IBBI has also revised the methodology relating to determination of valuation under the Pre-Packaged Insolvency Resolution Process (PPIRP) framework.

The revised provisions seek to clarify and streamline valuation determination processes applicable to pre-pack insolvency proceedings.

4. Applicability Across Insolvency Frameworks

The amendments have been made across multiple insolvency regulations, including:

• Corporate Insolvency Resolution Process (CIRP) Regulations
• Liquidation Process Regulations
• Pre-Packaged Insolvency Resolution Process (PPIRP) Regulations

The changes are intended to bring consistency and greater procedural clarity in valuation-related requirements.

5. Objective of the Amendments

The amendments aim to simplify insolvency procedures, reduce costs and improve efficiency in valuation processes, particularly in MSME insolvency cases.

The revised framework is also intended to strengthen transparency and improve consistency in valuation determination under the pre-pack insolvency regime.