Insolvency and Bankruptcy
Board of India (Insolvency Resolution Process for Corporate Persons) (Third
Amendment) Regulations, 2020
The Governing Board of the
Insolvency and Bankruptcy Board of India decided on 27th March, 2020
to amend the Insolvency and Bankruptcy Board of India (Insolvency Resolution
Process for Corporate Persons) Regulations, 2016.
The notification amending the
regulations could not be published in the Gazette of India, due to the
nationwide lockdown declared by the Central Government w.e.f. 25th
March, 2020, in the wake of the outbreak of Covid-19.
The amendment regulations were,
therefore, published on the website of the Board for it to be effective from
the 29th
March, 2020, with a note that the same shall be published in the
Gazette of India as soon as the Government Press accepts the notification for
publication.
The intention of the Governing
Board was to bring into force the amended regulations with effect from the 29th
March, 2020. It is certified that, since the amended regulations
provide clarity to the stakeholders in regard to the model time-line in the
corporate insolvency resolution process, no person is being adversely affected
by giving retrospective effect.
Governing Board vide Regulation
No. IBBI/2020-21/GN/REG059 states:
In exercise of the powers
conferred by clause (t) of sub-section (1) of section 196 read with section 240
of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Insolvency and
Bankruptcy Board of India hereby makes the following regulations further to
amend the Insolvency and Bankruptcy Board of India (Insolvency Resolution
Process for Corporate Persons) Regulations, 2016, namely: -
1. A. These regulations may be
called the Insolvency and Bankruptcy Board of India (Insolvency Resolution
Process for Corporate Persons) (Third Amendment) Regulations, 2020.
B. They shall be deemed to have come into force from the 29th
March, 2020.
2. In the Insolvency and
Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons)
Regulations, 2016, after regulation 40B, the following
regulation shall be inserted, namely:
“40C. Special provision
relating to time-line.
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 Covid-19 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.”
DISCLAIMER: THE ARTICLE IS BASED ON THE
RELEVANT PROVISIONS AND AS PER THE INFORMATION EXISTING AT THE TIME OF THE
PREPARATION. IN NO EVENT I SHALL BE LIABLE FOR ANY DIRECT AND INDIRECT RESULT
FROM THIS ARTICLE. THIS IS ONLY A KNOWLEDGE SHARING INITIATIVE.
THE
AUTHOR – CS DEEPAK SETH (ASSOCIATE PARTNER HELPINGHANDS PROFESSIONALS
LLP) AND CAN BE REACHED AT CONTACTHHPRO@GMAIL.COM OR 9910248911.
 (Third Amendment) Regulations, 2020){kind=link}
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