IBBI amends CIRP Regulations due to COVID19

IBBI amends CIRP Regulations to provide relief in corporate insolvency resolution process due to COVID-19 outbreak

The Insolvency and Bankruptcy Board of India (IBBI) amended the CIRP Regulations vide Press Release No. IBBI/PR/2020/06 dated 29th March, 2020 to provide that the period of lockdown imposed by the Central Government in the wake of COVID-19 outbreak shall not be counted for the purposes of the time-line for any activity that could not be completed due to the lockdown, in relation to a corporate insolvency resolution process. This would, however, be subject to the overall time-limit provided in the Code.

The IBBI amended the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulations) on 29th March 2020.

It is difficult for the insolvency professionals to continue to conduct the process, for members of committee of creditors to attend the meetings, and for prospective resolution applicants to prepare and submit resolution plans, during the period of lockdown. Therefore, it may be difficult to complete various activities during a corporate insolvency resolution process within the timelines specified in the CIRP Regulations.

Link: https://ibbi.gov.in//uploads/press/92797aa5f444ab7215707834d4821409.pdf

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