CIRP Valuation by Registered
IBBI Valuers

CIRP valuation is a statutory requirement under Regulation 35 of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. Two IBBI-registered valuers are appointed by the Resolution Professional to independently determine the liquidation value and fair value of the corporate debtor’s assets. These values guide the Committee of Creditors in evaluating resolution plans.

CIRP project value refers to the aggregate admitted claims or total asset value of corporate debtors admitted under insolvency proceedings at any point in time. As of 2025–26, thousands of CIRP cases are active across NCLT benches in India, with admitted claims cumulatively running into several lakh crore rupees. Each case requires independent registered valuer reports for both liquidation and fair value.

Only valuers registered with IBBI under the IBBI (Valuation Professionals) Regulations 2017 can conduct CIRP valuations. Valuers must hold valid registration in the relevant asset class — Securities or Financial Assets (Class I), Land and Buildings (Class II), or Plant and Machinery (Class III). RNC Valuecon LLP’s principals hold IBBI registration across all three asset classes.

Under Regulation 35, the registered valuer must submit the report within 45 days of appointment. The RP may grant a further 10-day extension in exceptional circumstances. RNC Valuecon typically delivers preliminary reports within 30–35 days, allowing buffer time for any clarifications before final submission.

Liquidation value is the estimated amount realisable if assets are sold in a distressed, time-bound scenario — it serves as the floor below which no resolution plan can be accepted. Fair value is the estimated realisation under open market, normal conditions — it reflects the asset’s economic worth without distress discounts. Both are mandatory under CIRP, and no resolution plan may offer less than the liquidation value to dissenting creditors.

No. Regulation 35 requires two independent registered valuers to be appointed separately. They must not be related to each other, to the corporate debtor, or to any financial creditor. Their reports are submitted independently, and the Resolution Professional takes the average of the two valuations as the basis for CoC deliberations.

CIRP valuation fees vary based on the size and complexity of the corporate debtor’s assets, the number of asset classes involved, and the geographic spread of assets. For a single-asset, single-class CIRP, fees typically start from ₹1–2 lakhs per valuer. Multi-location, multi-class valuations are quoted on a case-by-case basis. Contact RNC Valuecon for a mandate-specific fee quote.

IBBI’s circular dated April 1, 2026 makes International Valuation Standards (IVS), issued by the IVSC (International Valuation Standards Council), mandatory for all IBC valuations with immediate effect. This replaces the previous dual-standards approach where CIRP used IVS but liquidation followed Companies (Registered Valuers) Rules, 2017.

Under IVS, all valuation reports must include: explicit basis of value, scope of work, methodology justification with documented rationale for approach selection, assumptions and limiting conditions, and supporting evidence. RNC’s reports are fully IVS-compliant from the April 2026 effective date.