INSOLVENCY AND BANKRUPTCY BOARD OF INDIA vide Notification No. IBBI/2019-20/GN/REG059, dated 29, March 2020, has introduced Regulation 40C by way of an amendment to the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.
IBBI, contended that period of lockdown imposed due to COVID-19 (Coronavirus) outbreak shall be excluded from the time-line for any activity in relation to a corporate insolvency resolution process under the Insolvency & Bankruptcy Code, 2016 could not be completed due to said reason.
“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.” IBBI_Notification