IBBI’s New Framework for Insolvency Professional Panels

The Insolvency and Bankruptcy Board of India (IBBI) has issued fresh guidelines to overhaul and streamline the appointment process of Insolvency Professionals (IPs) for various roles under the Insolvency and Bankruptcy Code, 2016 (IBC). Titled “Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees (Recommendation) Guidelines, 2025,” the new framework will be effective from July 1, 2025, to December 31, 2025, and replaces the Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees (Recommendation) (Second) Guidelines, 2024, in entirety.

This initiative is aimed at improving transparency, ensuring the availability of qualified professionals, and reducing procedural delays in insolvency proceedings before the National Company Law Tribunal (NCLT) and the Debt Recovery Tribunal (DRT).

By issuing a pre-approved panel of eligible IPs, IBBI aims to equip the Adjudicating Authorities with a ready reference of professionals to act as Interim Resolution Professionals (IRP), Resolution Professionals (RP), Liquidators, and Bankruptcy Trustees (BT), thereby ensuring continuity, minimizing disruption, and expediting insolvency proceedings. The formulation of these guidelines is thus intended to promote transparency, procedural uniformity, and timely intervention.

Eligibility and Submission Protocols

• To qualify for inclusion in the panel, an IP must satisfy the following cumulative conditions:
  • No disciplinary proceedings (either by IBBI or the relevant Insolvency Professional Agency) should be pending;
  • Not been convicted by a court of competent jurisdiction in the past three years;
  • Submit an Expression of Interest (EOI) in Form A, along with unconditional consent to act in the roles of IRP, RP, Liquidator, or Bankruptcy Trustee.
  • Possess a valid Authorization for Assignment (AFA), which remains in force until at least December 31, 2025.
• The deadline for submission of Form A is June 22, 2025. The IBBI would send the EOI to the Adjudicating Authority by June 30, 2025.
• Furthermore, IPs are required to indicate their sectoral experience by choosing relevant industries from a dropdown menu in Form A, with provision for manual entry under ‘Others.’

Panel Composition and Selection Criteria

• A unified Panel of IPs will be constituted and shared with the NCLT and DRT. This panel will be organized zone-wise and bench-wise, based on the IPs registered office. However, when an Insolvency Professional Entity (IPE) acts as the IP, the panel will be valid across all NCLT benches. Adjudicating Authority may select any IP from the panel for the appointment as IRP, RP, Liquidator or BTs in Corporate Insolvency Resolution Process (CIRP), Liquidation Process, Insolvency Resolution Process or Bankruptcy Process.
• In an effort to prioritize experience and equitable workload distribution, the selection mechanism will give preference to IPs handling a higher volume of ongoing assignments under the Code. Where multiple professionals attain the same score, the date of registration with IBBI will be the deciding factor where older registrations would be prioritized.
• The inclusion of name in the Panel would be construed as deemed acceptance to act as IRPs, Liquidator, RP or BTs. Upon inclusion, an IP is expected to accept appointments unless exempted by the NCLT, DRT or IBBI. Refusal without valid justification will attract penal exclusion from the panel for six months. IPs are also advised not to surrender their registration, AFA, or IPA membership during the panel’s validity period to maintain appointment continuity and reliability.
• While the panel serves as the primary reference, Adjudicating Authority retains full discretion to seek recommendations outside the panel by requesting the IBBI preserving flexibility for unique case requirements.

The 2025 Guidelines formally repeal the previous guidelines dated December 2, 2024, though actions taken under the previous framework remain valid. This transition affirms the IBBI’s intent to enhance transparency, consistency, and efficiency in the insolvency ecosystem supporting IBCs objectives of value maximization, time-bound resolution and equitable treatment of stakeholders.