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Amendments by IBBI for IBBI (Insolvency resolution process for corporate persons) regulations 2016

As a measure to prevent the spread of the transmission of Novel Coronavirus (COVID- 19), the Central Government has declared a lockdown of twenty-one days w.e.f. 25th March, 2020. Since, it is difficult for the Insolvency Professionals (IPs) to continue carrying out the activities of Corporate Insolvency Resolution Process (CIRP), for the members of the Committee of Creditors (CoCs) to attend the meetings, and also for the prospective Resolution Applicants for the preparation and submission of resolution plans, during the period of this lockdown. It, therefore, may be difficult to complete various activities during a CIRP within the time-period specified in the CIRP regulations. The IBBI has amended the CIRP Regulations to address this problem in order to provide that the period of lockdown which has been imposed by the Government of India due to the outbreak of COVID-19 shall not be counted for the purposes of the time-line for activities which could not be completed due to this lockdown, which relates to a Corporate Insolvency Resolution Process. However, this would be subject to the overall-time limit provided in the Code. These amended regulations are effective from 29th March, 2020. These are available at www.mca.gov.in and www.gov.in. Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2020 In a notification release by the IBBI on 29th March, 2020, third amendment has been done regarding the Insolvency Resolution Process for Corporate Persons, Regulations, and 2020 which is as follows: The IBBI has made the following Regulations to amend the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, in the exercise of the powers conferred by Section 196(1)(t) read with Section 240 of the IBC, 2016, (31 of 2016). These regulations shall come into effect from 29th March, 2020. Following regulation may be inserted in the IBBI (Insolvency Resolution Process for Corporate Persons), Regulations, 2016, after regulation 40B which is as follows: Regulation 40C: Special provision relating to the time-line Notwithstanding the time-lines contained in these regulations, but subject to the provisions in the Code, the period of lockdown imposed by the Central Government in the wake of COVID19 outbreak shall not be counted for the purposes of the time-line for any activity that could not be completed due to such lockdown, in relation to a corporate insolvency resolution process.”. This notification shall be published in the Official Gazette of India as soon as the Government Press accepts the same for its publication.

 

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