The Insolvency and Bankruptcy Board of India (IBBI) amends the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulations).
IBBI declares that lockdown of twenty-one days shall not be counted for the purposes of the time-line for any activity in relation to a corporate insolvency resolution process.
The lockdown has been imposed by the Central Government in the wake of COVID-19. IBBI further states that it would be 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