In view of the major outbreak of COVID 19 Pandemic, the Insolvency and Bankruptcy Board of India issued a regulation on 29th March, 2020 stated that 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. The abovementioned directions were given under regulation 40C. Special provision relating to time-line.

On Sunday, the Insolvency and Bankruptcy Board of India issued Regulation 40C, pertaining to Special Provision relating to Time Line, in the Insolvency Resolution Process for Corporate Persons Regulations, 2020 under the Third Amendment. The Rule was inserted into the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.

The newly issued Regulation reads as follows:

“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”.

Notification:IBBI REGULATIONS 2020

Image: https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.taxscan.in%2Fibbi-designates-website-publishing-forms-regulations-2018%2F18197%2F&psig=AOvVaw25a18R1-rnt4kBOgsWlbKq&ust=1585634457706000&source=images&cd=vfe&ved=0CAIQjRxqFwoTCJDr3ObCwegCFQAAAAAdAAAAABAI