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Resolution professionals can't preside over liquidation: Govt
April 14, 2026
|Financial Express Chandigarh
LAST-MINUTE CHANGES TO THE INSOLVENCY BILL
THE GOVERNMENT HAS barred resolution professionals (RPs) under the insolvency process from being appointed as liquidator for the same company for which a resolution plan was previously rejected.
The Insolvency and Bankruptcy Code (IBC) Amendment Act 2026, passed by Parliament recently, has broadened the disqualification criteria for RPs acting as liquidators.
In the original IBC (Amendment) Bill, the disqualification of an RP was tied to a specific failure under Section 30(2), which requires RPs to examine compliances in a resolution plan before submitting it to the committee of creditors (CoC) for approval.
However, according to the final approved law, RPs cannot be appointed or replaced as liquidator of the same entity under any circumstances.
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