IBBI Amends CIRP Regulations to Provide Relief Amid Lockdown
To address the difficulty faced by the lockdown due to COVID-19, the Insolvency and Bankruptcy Board of India (IBBI) amended the Corporate Insolvency Resolution Process (CIRP) regulations to provide relief in the corporate insolvency resolution process.
New Delhi [India], Mar 31 (ANI): To address the difficulty faced by the lockdown due to COVID-19, the Insolvency and Bankruptcy Board of India (IBBI) amended the Corporate Insolvency Resolution Process (CIRP) regulations to provide relief in the corporate insolvency resolution process."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," an official statement read.The IBBI amended the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulations) on March 29."It is difficult for the insolvency professionals to continue to conduct the process, for members of the committee of creditors to attend the meetings, and for prospective resolution applicants to prepare and submit resolution plans, during the period of lockdown," the statement said."Therefore, it may be difficult to complete various activities during a corporate insolvency resolution process within the timelines specified in the CIRP Regulations," it added.The amended regulations came into effect on March 29. (ANI)
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