The Insolvency and Bankruptcy Board of India vide its notification dated 29th March 2020 has published the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2020.
The IBBI through this amendment states 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 timeline for any activity that could not be completed in due time due to the lockdown, in relation to a corporate insolvency resolution process(CIRP). This would, however, be subject to the overall time-limit provided in the Code.
Under the IBC, companies are given 330 days to finalize the CIRP, including the time taken for litigation and other judicial processes. However As per the new Regulation which came into force from 29th March 2020 indicates that companies will get a breather for 17 days, until April 14, 2020.
Click here to read the Notification.