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Insolvency Valuation IBBI Registered Valuer

Quick answer: Insolvency valuations under the IBC — CIRP fair and liquidation values, liquidation-stage asset valuations, avoidance-transaction analysis — must be performed by IBBI Registered Valuers in the relevant asset class. Valuation-date discipline, methodology selection and documentation quality matter because creditors, the NCLT and appellate forums all test the numbers.

Looking for expert insolvency valuation ibbi registered valuer? Virtual Auditor provides practitioner-grade ibc services in India, led by CA V. Viswanathan — IBBI Registered Valuer (IBBI/RV/03/2019/12333) | Fellow Chartered Accountant (FCA) | Associate Company Secretary (ACS). We combine deep regulatory expertise with hands-on execution to deliver results within your timeline.

What We Deliver

IBBI-compliant valuation report — fair value and/or liquidation value as required under CIRP/liquidation regulations. Resolution plan viability assessment with going concern and break-up analysis. Compliance certificate for NCLT filing confirming adherence to IBC valuation standards. Detailed methodology documentation with assumptions and sensitivity analysis. Expert opinion / testimony support for NCLT hearings.

Last reviewed: July 2026 by CA V. Viswanathan (FCA, ACS, CFE, IBBI Registered Valuer)

Insolvency Valuation Is Wider Than the CIRP Number

Most people equate insolvency valuation with the Regulation 35 fair-and-liquidation exercise. In practice the Insolvency and Bankruptcy Code generates several distinct valuation demands that sit outside that headline number, each with its own statutory hook and evidentiary standard. A resolution professional or liquidator who treats valuation as a one-off deliverable usually discovers, too late, that the recovery of clawed-back value, the eligibility of a bidder, or the viability of a pre-pack all rested on separate valuation work that was never commissioned. Our insolvency practice covers this wider field — avoidance-transaction quantification, Section 29A support, and pre-packaged resolution valuations for MSMEs.

Valuing the PUFE Universe — Sections 43 to 66

Chapter III of the Code arms the resolution professional and liquidator with powers to reverse value that leaked out of the corporate debtor before insolvency. Collectively these are the PUFE transactions — Preferential, Undervalued, Fraudulent and Extortionate — and each requires valuation evidence to succeed before the Adjudicating Authority:

TransactionSectionValuation question
Preferential43Did a creditor, surety or guarantor receive more than they would under the Section 53 waterfall?
Undervalued45 / 49Was consideration received significantly less than the value provided by the corporate debtor?
Extortionate credit50Were the terms grossly exorbitant relative to the risk and market rates?
Fraudulent / wrongful trading66What loss did the business suffer from carrying on trade to defraud creditors?

The undervalued-transaction and extortionate-credit applications turn almost entirely on valuation: proving a sale of a factory, brand or subsidiary was "significantly less" than value requires a defensible reconstruction of what the asset was worth on the transaction date, not today. We build that contemporaneous value, isolate the shortfall, and package the workings so the RP's application under Section 45 or 50 can withstand cross-examination.

The Look-Back and Relevant-Time Tests

Clawback powers reach only into defined windows, and the valuation must be pinned to the transaction date inside that window:

  1. Preferential and undervalued transactions are examinable if entered into within two years before the insolvency commencement date where the counterparty is a related party, and within one year for unrelated parties.
  2. Extortionate credit transactions carry a two-year look-back.
  3. Regulation 35A disciplines the timeline: the resolution professional must form an opinion on PUFE transactions by the seventy-fifth day of the CIRP, make a determination by the one-hundred-and-fifteenth day, and file the application with the Adjudicating Authority by the one-hundred-and-thirty-fifth day.

Because the determination deadline is early and firm, the transaction-audit valuation has to be scoped and run in parallel with the main CIRP work, not afterwards. We slot the avoidance review into the first ten weeks so the RP is never left applying past the Regulation 35A window with unsupported numbers.

Section 29A Diligence Support

Section 29A disqualifies a range of persons from submitting a resolution plan — undischarged insolvents, wilful defaulters, promoters of accounts classified as non-performing for a year or more, the disqualified, the convicted, and their connected persons. Much of this screening is legal, but valuation frequently sits underneath it: quantifying whether an account crossed the NPA threshold, tracing whether a connected person controls assets that would let a barred promoter re-enter through the back door, and valuing the settlement a defaulter must make to cure ineligibility. We provide the financial and valuation limb of 29A diligence so the resolution professional's eligibility view is evidenced, not assumed.

Pre-Packaged Insolvency (PPIRP) for MSMEs

The pre-packaged insolvency resolution process, introduced through Chapter III-A (Sections 54A to 54P), gives eligible micro, small and medium enterprises a faster, debtor-in-possession route with a minimum default threshold of ₹10 lakh. The corporate debtor prepares a base resolution plan, and if that plan impairs operational creditors' dues or is bettered, it goes to a Swiss challenge where third parties can outbid it. Valuation is central at two points: testing whether the base resolution plan clears the liquidation-value floor, and providing the fair and liquidation values (again via two registered valuers) that let the CoC judge the base plan against any challenger. We support MSME promoters and resolution professionals through both, keeping the compressed PPIRP timeline intact.

Engagement Models and Fees

Insolvency valuation work is scoped to the specific statutory trigger, and we are comfortable acting for resolution professionals, liquidators, MSME debtors or creditors provided independence under the Code of Conduct is preserved. Indicative fees:

ServiceFee (from)
Avoidance-transaction valuation (per transaction, Sec 45/50)₹50,000
Full PUFE transaction-audit support (Reg 35A timeline)₹1,50,000+
Section 29A financial diligence support₹60,000
PPIRP base-plan valuation (MSME)₹75,000

Why Choose Virtual Auditor

Virtual Auditor is led by IBBI Registered Valuer CA V. Viswanathan (IBBI/RV/03/2019/12333) with direct experience in insolvency valuations under the IBC 2016. We provide fair value and liquidation value reports for CIRP proceedings, liquidation processes, and Section 7/9 NCLT applications. Our reports are accepted by Resolution Professionals, CoC members, and NCLT benches.

With physical offices in Chennai (Spencer Plaza), Bangalore (MG Road), and Mumbai (Goregaon West), we offer both in-person and remote engagement models.

Insolvency valuations under the IBC 2016 have specific requirements: Regulation 27 mandates two registered valuers for CIRP, Regulation 35 requires fair value and liquidation value determination, and the valuers must be IBBI-registered. Our valuation reports address going concern value for resolution plan assessment, orderly liquidation value, and forced sale value with detailed assumptions for each scenario. Reports are formatted for CoC presentation and NCLT filing.

Our Process

Step 1: Engagement with RP/applicant — scope, timeline, valuation date. Step 2: Data collection — financials, asset schedules, claims register. Step 3: Multi-method valuation — going concern, orderly liquidation, forced sale. Step 4: Draft report review with RP/CoC. Step 5: Final IBBI-compliant report delivery for NCLT filing.

Timing is critical in insolvency proceedings. The CIRP timeline of 180 days (extendable to 330 days) leaves no room for delays in valuation. We prioritise IBC engagements and can deliver preliminary valuation estimates within 5 working days for urgent NCLT filing requirements, followed by the detailed report within the standard timeline.

Get Started Today

Ready to engage Virtual Auditor for insolvency valuation ibbi registered valuer? Contact us for a free initial consultation:

Call/WhatsApp: +91 99622 60333

Email: support@virtualauditor.in

Offices: Chennai | Bangalore | Mumbai

No obligation. We will assess your requirements and provide a clear scope, timeline, and fixed-fee quote within 24 hours.

Strategic Business & Compliance Insights

Frequently Asked Questions

What are PUFE transactions under the IBC?
PUFE is shorthand for the four categories of avoidance transaction the Code lets a resolution professional or liquidator challenge: Preferential transactions (Section 43), Undervalued transactions (Sections 45 and 49), Extortionate credit transactions (Section 50) and Fraudulent or wrongful trading (Section 66). Each allows value that leaked out of the corporate debtor before insolvency to be clawed back for creditors. Undervalued and extortionate applications turn heavily on valuation evidence, because proving a transfer was 'significantly less' than value requires a defensible reconstruction of the asset's worth on the transaction date.
What is the look-back period for challenging a transaction under the IBC?
For preferential and undervalued transactions, the look-back is two years before the insolvency commencement date where the counterparty is a related party, and one year for unrelated parties. Extortionate credit transactions carry a two-year look-back. Regulation 35A also fixes the process clock: the resolution professional must form an opinion on such transactions by the seventy-fifth day of the CIRP, determine them by the hundred-and-fifteenth day, and file with the Adjudicating Authority by the hundred-and-thirty-fifth day, so the valuation must run early.
How does valuation support a Section 29A eligibility check?
Section 29A bars various persons — undischarged insolvents, wilful defaulters, promoters of year-plus NPAs, the convicted and disqualified, and their connected persons — from submitting a resolution plan. While the screening is largely legal, valuation underpins it: quantifying whether an account genuinely crossed the NPA threshold, valuing what a barred promoter must pay to cure ineligibility, and tracing whether a connected person controls assets that would let a disqualified party re-enter indirectly. We provide this financial and valuation limb so the eligibility view is evidenced rather than assumed.
What is a pre-packaged insolvency resolution process (PPIRP)?
PPIRP, introduced through Chapter III-A (Sections 54A to 54P), is a faster, debtor-in-possession route reserved for eligible MSMEs, with a minimum default threshold of ₹10 lakh. The corporate debtor prepares a base resolution plan; if it impairs operational creditors or is bettered, a Swiss challenge lets third parties outbid it. Valuation matters at two points — confirming the base plan clears the liquidation-value floor and supplying the fair and liquidation values (via two registered valuers) that let the committee compare the base plan with any challenger.
Can the same registered valuer do both the CIRP and the avoidance-transaction valuation?
Yes, provided independence and the Code of Conduct are respected, and it is often efficient because the avoidance review draws on the same asset and financial understanding built during the main CIRP valuation. What matters is that the contemporaneous valuation used to prove an undervalued or extortionate transaction is pinned to the historic transaction date, not the insolvency commencement date, and is documented separately. We commonly run the transaction audit in parallel with the Regulation 35 exercise to meet the Regulation 35A determination deadline.
How is an undervalued transaction proved for a Section 45 application?
The resolution professional must show the corporate debtor made a gift, or received consideration significantly less than the value it provided, within the look-back period. That requires reconstructing what the transferred asset — a property, brand, subsidiary or block of shares — was actually worth on the transaction date, then isolating the shortfall against the price paid. The valuation must use methods and market data available at that historic date, be internally consistent, and be documented to survive cross-examination, since the counterparty will typically defend the price as arm's length.
Who can act as a registered valuer in insolvency matters?
Only a person registered with the IBBI in the relevant asset class — Land and Building, Plant and Machinery, or Securities or Financial Assets — through a recognised Registered Valuers Organisation, and complying with the Companies (Registered Valuers and Valuation) Rules, 2017. For enterprise, going-concern and avoidance-transaction work the Securities or Financial Assets class applies. Our firm holds SFA registration (IBBI/RV/03/2019/12333) and coordinates panel L&B and P&M valuers where a mandate spans real estate or machinery as well as the business itself.