IBBI (Insolvency Resolution Process for Corporate Persons) (Third Amendment)Regulations, 2020

Last updated: 30 March 2020

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The Insolvency and Bankruptcy Board of India (IBBI) has introduced an amendment to the Corporate Persons (Insolvency Resolution Process) Regulations. This amendment provides a special provision regarding timelines. It states that the period of lockdown imposed due to the COVID-19 outbreak will not be counted towards the deadlines for any activities that could not be completed during this time. This applies to corporate insolvency resolution processes.

*[TO BE PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY
PART III, SECTION 4]
PUBLISHED BY AUTHORITY
NEW DELHI, THE 29TH MARCH, 2020
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
NOTIFICATION

New Delhi, the 29th March, 2020

Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate
Persons) (Third Amendment) Regulations, 2020.

No. IBBI/2019-20/GN/REG059.- In exercise of the powers conferred by clause (t) of subsection (1) of section 196 read with section 240 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Insolvency and Bankruptcy Board of India hereby makes the following regulations further to amend the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, namely:-

1. (1) These regulations may be called the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2020.
(2) They shall come into force on the 29th March, 2020.

2. In the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, after regulation 40B, the following regulation shall be inserted, namely: -

“40C. Special provision relating to 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.”.

(Dr. M. S. SAHOO)
Chairperson
[ADVT.- III/4/Exty./…./20]

Note: The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 were published vide Notification No. IBBI/2016-17/GN/REG004, dated 30th November, 2016 in the Gazette of India, Extraordinary, Part III, Section 4, No. 432 on 30th November, 2016 and were last amended by the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2020 vide Notification No. IBBI/2019-20/GN/REG056, dated the 25th March, 2020.

* The Notification shall be published in the Gazette of India as soon as the Government Press accepts the same for publication.

FAQ :

The amendment introduces a special provision that excludes the lockdown period imposed due to the COVID-19 outbreak from being counted towards the timelines for corporate insolvency resolution processes.

These regulations came into force on the 29th March, 2020.

The Insolvency and Bankruptcy Board of India (IBBI) issued these regulations.

The period of lockdown imposed by the Central Government in the wake of the COVID-19 outbreak is not counted.

No, this amendment specifically relates to the time-lines for activities within a corporate insolvency resolution process that could not be completed due to the COVID-19 lockdown.