The IBBI amends the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016

Last updated: 30 March 2020

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The Insolvency and Bankruptcy Board of India (IBBI) has amended the Corporate Insolvency Resolution Process (CIRP) Regulations. This change addresses difficulties faced by insolvency professionals, creditors, and applicants due to the national COVID-19 lockdown. Specifically, the period of the lockdown will not be counted towards the timelines for activities that could not be completed because of it, though the overall time limit set by the Code still applies. These amendments are effective immediately.

The Insolvency and Bankruptcy Board of India (IBBI) amended the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulations) today.

2. Government of India has declared a lockdown of twenty-one days with effect from 25th March, 2020 as a measure to combat and contain the spread of COVID-19. 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.

3. To address this difficulty, the IBBI amended the CIRP Regulations 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.

4. The amended regulations are effective from today. These are available at www.mca.gov.in and www.ibbi.gov.in.

FAQ :

The IBBI has amended the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulations).

The regulations were amended to address the difficulties in conducting corporate insolvency resolution processes during the national COVID-19 lockdown, which made it hard to complete activities within the specified timelines.

The period of the COVID-19 lockdown will not be counted towards the timelines for any activity in a corporate insolvency resolution process that could not be completed due to the lockdown.

Yes, the exclusion of the lockdown period is subject to the overall time-limit provided in the Code.

The amended regulations are effective from today, the date of the notification.

The amended regulations are available on www.mca.gov.in and www.ibbi.gov.in.