Section 34 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Once the Adjudicating Authority orders liquidation under section 33, section 34 decides who runs it. As per the IBBI consolidated text of the Code amended up to 12 August 2021, the resolution professional acts as liquidator unless replaced. The Insolvency and Bankruptcy Code (Amendment) Act, 2026 changes that: it substitutes sub-section (1) and sub-sections (3) to (6), so that the Board recommends a liquidator and the earlier resolution professional is barred.
Consolidated text: the resolution professional of the process acts as liquidator, on written consent, unless replaced; the board's powers vest in the liquidator; the Board proposes a replacement within ten days; the fee is as specified by the Board and paid from the proceeds of the liquidation estate under section 53. After the 2026 Act: the Adjudicating Authority refers the matter to the Board for a recommendation and appoints the professional recommended, and the professional who was the resolution professional under Chapter II shall not be appointed or replaced as liquidator.
Section 34 as printed in the consolidated text
| Sub-section | Rule |
|---|---|
| (1) | Where the Adjudicating Authority passes an order for liquidation under section 33, the resolution professional appointed for the CIRP under Chapter II (or the pre-packaged process under Chapter III-A) shall, subject to submission of a written consent to the Adjudicating Authority in specified form, act as the liquidator unless replaced under sub-section (4) |
| (2) | On the appointment of a liquidator, all powers of the board of directors, key managerial personnel and the partners shall cease to have effect and shall be vested in the liquidator |
| (3) | The personnel of the corporate debtor shall extend all assistance and cooperation to the liquidator as required in managing the affairs of the corporate debtor, and the provisions of section 19 apply, with the substitution of references to the liquidator for references to the interim resolution professional |
| (4) | The Adjudicating Authority shall by order replace the resolution professional if (a) the plan submitted under section 30 was rejected for failure to meet the requirements in section 30(2); (b) the Board recommends the replacement for reasons to be recorded in writing; or (c) the resolution professional fails to submit written consent under sub-section (1) |
| (5) | For clauses (a) and (c) of sub-section (4), the Adjudicating Authority may direct the Board to propose the name of another insolvency professional as liquidator |
| (6) | The Board shall propose the name of another insolvency professional, along with written consent in the specified form, within ten days of the direction under sub-section (5) |
| (7) | On receipt of the Board's proposal, the Adjudicating Authority shall, by an order, appoint such insolvency professional as liquidator |
| (8) | An insolvency professional proposed to be appointed as liquidator shall charge such fee for the conduct of the liquidation proceedings and in such proportion to the value of the liquidation estate assets, as may be specified by the Board |
| (9) | The fees shall be paid to the liquidator from the proceeds of the liquidation estate under section 53 |
The text prints "Adjudicatory Authority" in sub-section (1); it is a drafting slip, quoted as printed. Sub-section (3) of the consolidated text also speaks of "voluntary liquidation process", a reference that the 2026 substitution keeps in a different form (see below). The liquidation order itself is in section 33; see the live post on section 33. The wider picture is in our guide to liquidation and the liquidator's appointment, powers and duties.
If you are a creditor or an insolvency professional and need the appointment steps on a live liquidation read against the text, a legal consultation can help.
What the Amendment Act, 2026 changes
Section 21 of the Amendment Act, 2026 (No. 6 of 2026) amends section 34 as follows.
| Sub-section | As printed in the consolidated text | After the 2026 Act |
|---|---|---|
| (1) | The resolution professional acts as liquidator on written consent unless replaced | Substituted: "Where the Adjudicating Authority passes an order for liquidation of the corporate debtor under section 33, it shall refer to the Board for making recommendation of an insolvency professional to be appointed as the liquidator and on receipt of the recommendation, appoint such insolvency professional as the liquidator." |
| (3) | Cooperation of personnel; section 19 applies | Substituted with a wider duty: "Any person who is or has been a personnel of the corporate debtor, or its promoter, or associated with the management of the corporate debtor, or engaged in a contract for service with the corporate debtor, shall extend all assistance and cooperation to the liquidator as may be required by him for the purposes of managing the affairs of the corporate debtor or performing the duties conferred on him under this Chapter and the provisions of section 19 shall apply in relation to liquidation and voluntary liquidation process as they apply in relation to corporate insolvency resolution process with the substitution of references to the liquidator for references to the interim resolution professional and resolution professional and references to the corporate insolvency resolution process with liquidation and voluntary liquidation process, respectively." |
| (4) | Adjudicating Authority replaces the resolution professional on three grounds | Substituted: "Notwithstanding anything contained in this section and section 34A, an insolvency professional appointed as a resolution professional for the corporate insolvency resolution process under Chapter II, shall not be appointed or replaced as the liquidator for the liquidation process of such corporate debtor." |
| (5) | Direction to the Board to propose a name | Substituted: "After an order of liquidation has been passed, the resolution professional shall forward to the liquidator, all records relating to the conduct of the corporate insolvency resolution process." |
| (6) | Board proposes a name within ten days of the direction | Substituted: "The Board shall propose the name of an insolvency professional, other than the resolution professional appointed for the corporate insolvency resolution process under Chapter II, along with written consent from such insolvency professional in the specified form, within ten days of the reference made by the Adjudicating Authority under sub-section (1)." |
| (7) | "shall, by an order, appoint" | The words "by an order" are omitted |
Sub-sections (2), (8) and (9) are not touched. Section 34A, inserted by the same Act, lets the committee of creditors replace the liquidator; see the live post on section 34A and our post on liquidation reforms. The Amendment Act, 2026 comes into force on the date or dates the Central Government notifies; the notification is not in the texts consulted, so check whether this change has been notified. A related Explanation in the Act (to section 21(11)) separates liquidations begun after the date of commencement from ongoing ones, quoted in the section 21 article.
Practical points
- Creditors should note that under the consolidated text the resolution professional is the default liquidator, and that under the 2026 text the earlier professional is barred.
- Insolvency professionals need a written consent in the specified form either way.
- Directors and promoters lose their powers to the liquidator on appointment (sub-section 2); the 2026 wording extends the duty to cooperate to those who "have been" personnel.
- The liquidator's fee is as specified by the Board, in proportion to the value of the liquidation estate assets, and paid from the proceeds under section 53 (sub-sections 8 and 9).
The Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 provide the process detail; the copy consulted is amended up to 22-09-2026 as printed under its title. Amendments and notifications made after 12 August 2021, other than the Amendment Act, 2026, are not in the texts consulted and should be checked.
Need help in a liquidation appointment?
Who is appointed, and whether a replacement is needed, can decide how the liquidation estate is handled. A legal consultation can help creditors and professionals read the order, the consent and the Board's proposal against section 34.
Key takeaways
- In the consolidated text the resolution professional acts as liquidator on written consent unless replaced.
- The Board proposes a replacement within ten days; the Adjudicating Authority appoints.
- The fee is specified by the Board and paid from the liquidation estate proceeds under section 53.
- The 2026 Act substitutes sub-sections (1) and (3) to (6): the Board recommends, the Chapter II resolution professional is barred, and the duty to cooperate widens.
- Check whether the Amendment Act, 2026 changes have been notified.
Read next
- Section 35: powers and duties of the liquidator
- Section 37: liquidator's access to information
- Sections 38 to 42: claims in liquidation
- Section 33: liquidation order
Disclaimer: Based on the IBBI consolidated text of the Insolvency and Bankruptcy Code, 2016 amended up to 12 August 2021 and on the Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026), which comes into force on the date or dates notified by the Central Government, as consulted on 2 October 2026. It explains the words of the statute only; commencement notifications, other amendments made after 12 August 2021, notified thresholds, the rules and IBBI regulations, and the way tribunals and courts apply these sections should be checked. This article is general information, not legal advice; check the official text before acting.