COVID-19 lockdown time excluded from corporate insolvency resolution process computation under Regulation 40C.

The corporate insolvency resolution process timeline was treated as excluding the period lost to the COVID-19 lockdown and related shutdowns. The Tribunal noted that the resolution process had already been extended, that completion was impeded by the unprecedented pandemic restrictions, and that Regulation 40C had been inserted to exclude lockdown time while computing the resolution period. It also recorded that the period from 25.03.2020 onwards stood excluded for computation purposes. On that basis, the requested exclusion of time from the corporate insolvency resolution process period was accepted.

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Issues: Whether the period affected by the COVID-19 lockdown and related shutdowns should be excluded from the corporate insolvency resolution process timeline.

Analysis: The application was made under section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016 read with rule 11 of the National Company Law Tribunal Rules, 2016. The record noted that the corporate insolvency resolution process had already been extended and that the process could not be completed because of the unprecedented lockdown situation arising from the pandemic. It was also noted that Regulation 40C had been inserted to exclude time lost due to lockdown while computing the resolution process period, and that the period from 25.03.2020 onwards stood excluded for computation purposes.

Conclusion: The requested exclusion of time from the corporate insolvency resolution process period was accepted.

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