Tribunal excludes Covid-19 lockdown days from insolvency timeline, sets new deadline for resolution. The Tribunal granted the Resolution Professional's request to exclude the 224-day lock down period from the Corporate Insolvency Resolution Process ...
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Tribunal excludes Covid-19 lockdown days from insolvency timeline, sets new deadline for resolution.
The Tribunal granted the Resolution Professional's request to exclude the 224-day lock down period from the Corporate Insolvency Resolution Process timeline, due to the adverse impact of the Covid-19 pandemic lock down. The Resolution Professional was directed to complete the process by 05.01.2021, acknowledging the disruptions caused by the pandemic on the resolution process.
Issues: Application for exclusion of lock down period from Corporate Insolvency Resolution Process
Analysis: - The judgment pertains to an application filed by the Resolution Professional under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, along with Regulation 40(C) of IBBI Regulations, seeking the exclusion of the lock down period from the Corporate Insolvency Resolution Process. - The Corporate Insolvency Resolution Process was initiated by RBL Bank Limited (Financial Creditor) against Hindustan Newsprint Limited Limited (Corporate Debtor), with the Resolution Professional appointed by the Tribunal. - The Resolution Professional informed the Tribunal that the 180-day period of the Corporate Insolvency Resolution Process expired during the lock down period declared by the Government of India due to the Covid-19 pandemic. - Considering the adverse impact of the lock down on the Corporate Insolvency Resolution Process, the Resolution Professional requested the exclusion of the period from 22.03.2020 to 31.10.2020 from the overall timeline of the process. - After hearing the counsel and reviewing the records, the Tribunal granted the prayer to exclude the 224-day lock down period from the Corporate Insolvency Resolution Process timeline, directing the Resolution Professional to complete the process by 05.01.2021. - The Tribunal disposed of the application accordingly, allowing the exclusion of the lock down period to account for the disruptions caused by the Covid-19 pandemic on the Corporate Insolvency Resolution Process.
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