Tribunal Excludes Lockdown Days for CIRP Timeline Due to COVID-19 Impact

The Tribunal allowed IA No. 348/2020, excluding the lockdown period from 25.03.2020 to 31.07.2020 for calculating the 180-day timeline in the CIRP period due to COVID-19. This decision aligned with Supreme Court and NCLAT orders on extension of limitation and IBBI Regulations, recognizing the impact of the pandemic on legal proceedings and the need to mitigate hardships faced by stakeholders. The exclusion of lockdown days aimed to ensure adherence to prescribed timelines under the Insolvency and Bankruptcy Code, addressing challenges posed by the pandemic on insolvency processes.

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Issues:
1. Urgent hearing sought for IA No. 348/2020.
2. Exclusion of days for calculating 180 days in CIRP period due to lockdown.
3. Applicability of orders related to extension of limitation due to COVID-19.
4. Impact of IBBI Regulations on exclusion of lockdown period in insolvency processes.

Analysis:
1. The Tribunal allowed IA No. 347/2020 filed for urgent hearing of IA No. 348/2020, which was disposed of subsequently.

2. IA No. 348/2020 was filed by the Resolution Professional seeking exclusion of 102 days from the CIRP period for calculating 180 days due to the COVID-19 lockdown. The delay in completing the resolution process was attributed to the lockdown, impacting the timeline for corporate debtor resolution.

3. Referring to orders by the Supreme Court and NCLAT regarding extension of limitation due to the pandemic, the Tribunal recognized the impact of COVID-19 on legal proceedings. The orders emphasized the need to mitigate hardships faced by stakeholders and ensure adherence to prescribed timelines under the Insolvency and Bankruptcy Code.

4. The Tribunal considered the insertion of Regulation 40C by IBBI, excluding the lockdown period for activities affected by the pandemic in corporate insolvency resolution processes. Additionally, Regulation 47A was inserted for liquidation processes, further emphasizing the exclusion of lockdown period for timeline computation.

In conclusion, IA No. 348/2020 was allowed, excluding the lockdown period from 25.03.2020 to 31.07.2020 for calculating the 180-day timeline, which was originally set to expire on 25.08.2020. The Tribunal's decision aligned with the regulatory framework and judicial directives aimed at addressing the challenges posed by the pandemic on insolvency proceedings.

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