The Insolvency and Bankruptcy Board of India (IBBI) has issued a letter dated 11th November 2019, to all registered insolvency professionals regarding compliance with the provisions of Section 12 of the Insolvency and Bankruptcy Code, 2016.
The Insolvency and Bankruptcy Code (Amendment) Act, 2019 inserted two provisos to Section 12(3) of the Code to provide for overall time limit that mandates corporate insolvency resolution process (CIRP) of a corporate debtor (CD) to be completed within 330 days from the insolvency commencement date.
This period of 330 days includes
- Normal CIRP period of 180 days
- One-time extension upto 90 days of such CIRP period granted by the Adjudicating Authority
- The time taken in legal proceedings.
Therefore IBBI through this letter directs the insolvency professional to confirm that as on November 14, 2019, that they don’t have an ongoing CIRP, which is not completed within 330 days from the insolvency commencement date, and they do not have any ongoing CIRP, which was not complete as on August 16, 2019 even after expiry of 330 days and is not completed.
In case, if the professionals have any such CIRP, which is not complete as on November 14, 2019, then they are requested inform by mail at proceeding@ibbi.gov.in, the status of each such CIRP including the present stage at which the CIRP rests, along with reasons for non-completion, and the persons responsible for non-completion, to the board to enable it to seek appropriate legal remedy permissible under the Code for any contravention causing such non-completion in the FORM-1 (which is annexed in the circular), by November 21, 2019. Non-submission of the Form by 21st November, 2019 shall be considered as contravention of the provisions of the Code and the regulations made there under.
Click here to read the Notification
