IBBI Exempts Lockdown Period From Time Line Of Activity In Relation To Liquidation Process [Read Notification]

In view of the COVID-19 pandemic, the Insolvency and Bankruptcy Board of India has stated that the period of lockdown imposed by the Central Government 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 liquidation process.

The IBBI issued the Insolvency and Bankruptcy Board of India (Liquidation Process) (Second Amendment) Regulations, 2020 to insert Rule 47A in the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016.

The newly inserted Regulation states :

"Exclusion of period of lockdown.

47A. Subject to the provisions of the Code, the period of lockdown imposed by the Central Government in the wake of COVID-19 outbreak shall not be counted for the purposes of computation of the time-line for any task that could not be completed due to such lockdown, in relation to any liquidation process.".

Earlier, the IBBI had exempted lockdown period for the computation of time-line for activities related to CIRP.

That was done on March 29 by issuing the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2020 to insert Rule 40C in the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.

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