New Delhi, April 14 -- Resolution professionals (RPs) have been barred from being appointed as liquidators for the same company where a resolution plan has been rejected, as per newly enacted Insolvency and Bankruptcy Code (IBC) Amendment Act 2026.

The IBC Amendment Bill 2026 which was passed by the Parliament recently received the President's assent last week.

The move marks a significant shift from the earlier proposal, where disqualification was linked to specific lapses under Section 30(2). The final law expands this restriction, prohibiting RPs from taking up the role of liquidator for the same entity under any circumstances.

New Appointment Mechanism for Liquidators

The Act also introduces a revised process for appointing liquid...