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Lockdown period excluded from bankruptcy resolution, liquidation time frame

India 2020 Government Coronavirus
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While the Bankruptcy Code prescribes a 330-day time frame for resolving a bankruptcy, regulations prescribe timelines for various steps involved in the process The Insolvency and Bankruptcy Board of India (IBBI) has amended regulations to exclude the ongoing national lockdown period from the timeframe specified in rules for completing various tasks related to bankruptcy resolution and liquidation of companies.

Bankruptcy rule maker, the IBBI, on Friday notified separate amendments to regulations-- Insolvency Resolution Process for Corporate Persons Regulations, 2016 and Liquidation Process Regulations, 2016 to ensure the lock down period is not counted while calculating the timelines prescribed for specified tasks.

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