Providing leeway to resolution professionals amid the coronavirus outbreak, IBBI has relaxed the timelines to be followed under the overall 330-day deadline for completion of insolvency resolution processes.
Against the backdrop of the 21-day lockdown to curb spreading of coronavirus infections, the Insolvency and Bankruptcy Board of India (IBBI) has amended certain regulations.
The lockdown period would not be counted for the purpose of timelines set under the IBBI regulations for Corporate Insolvency Resolution Process (CIRP), according to a notification.
"Every activity in a CIRP has a timeline. In view of the national lockdown, it may not possible for an insolvency professional to continue to conduct process, for members of committee of creditors to attend the meetings, and for prospective resolution applicants to prepare and submit resolution plans, within the specified timeline.
"We have therefore amended regulations to provide that the period of lockdown shall not be counted for the purpose of timeline for any activity in a CIRP," IBBI Chairperson M S Sahoo told PTI on Sunday.
IBBI is a key authority in implementation of the Insolvency and Bankruptcy Code.
Sahoo also clarified that the flexibility is subject to overall time limit available under the Code. There is a deadline of 330 days for completion of a resolution process.
There is no change to timelines given in the Code and it is "relaxation of timeline given in the regulations," he noted.