IBBI Issues New Rule for Personal Guarantors Failing to Submit Repayment Plans

The Insolvency and Bankruptcy Board of India (IBBI) has introduced Regulation 17B to address situations where personal guarantors fail to submit repayment plans under Section 105 of the Insolvency and Bankruptcy Code (IBC).  

Effective from May 19, 2025, this regulation mandates that if a personal guarantor does not prepare and submit a repayment plan, the Resolution Professional (RP) must obtain approval from creditors and then file an application with the Adjudicating Authority (AA) to inform them of the non-submission and seek appropriate directions.  

This amendment aims to prevent procedural delays, empower RPs to act decisively, and ensure the insolvency process proceeds efficiently.