After the amendment notification was passed by the IBBI, the National Company Law Appellate Tribunal (NCLAT) vide its order dated March 30, 2020 has taken a suo moto cognizance of the hardships being faced by various stakeholders in order to comply with various provisions and to adhere to the prescribed timelines under IB Code2016.
This order removes the scope of any ambiguity in interpreting the period that needs to be excluded from the ongoing corporate insolvency processes under IB Code2016.
NCLAT took suo moto cognizance of the unprecedented situation arising out of spread of COVID19 virus declared a pandemic. NCLAT in exercise of powers conferred by Rule 11 of National Company Law Appellate Tribunal Rules, 2016 r/w the decision of this Appellate Tribunal rendered in “Quinn Logistics India Pvt. Ltd. vs. Mack Soft Tech Pvt. Ltd. in Company Appeal (AT) (Insolvency) No.185 of 2018” decided on 8th May, 2018 do hereby order as follows: –
- That the period of lockdown ordered by the Central Government and the State Governments including the period as may be extended either in whole or part of the country, where the registered office of the Corporate Debtor may be located, shall be excluded for the purpose of counting of the period for ‘Resolution Process under Section 12 of the Insolvency and Bankruptcy Code, 2016, in all cases where ‘Corporate Insolvency Resolution Process’ has been initiated and pending before any Bench of the National Company Law Tribunal or in Appeal before this Appellate Tribunal.
- It is further ordered that any interim order/ stay order passed by this Appellate Tribunal in anyone or the other Appeal under Insolvency and Bankruptcy Code, 2016 shall continue till next date of hearing, which may be notified later.