2.4.40:Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.
40. Extension of the corporate insolvency resolution process period.
(1) The committee may instruct the resolution professional to make an application to the Adjudicating Authority under section 12 to extend the insolvency resolution process period.
(2) The resolution professional shall, on receiving an instruction from the committee under this Regulation, make an application to the Adjudicating Authority for such extension.
The following Table presents a model timeline of corporate insolvency resolution process on the assumption that the interim resolution professional is appointed on the date of commencement of the process and the time available is hundred and eighty days:
|Description of Activity||Norm||Latest
|Section 16(1)||Commencement of CIRP and appointment|
|Regulation 6(1)||Public announcement inviting claims||Within 3 Days of Appointment of|
|Section 15(1)(c) /|
and 12 (1)
|Submission of claims||For 14 Days from Appointment of|
|Regulation 12(2)||Submission of claims||Up to 90th day of commencement||T+90|
|Regulation 13(1)||Verification of claims received under|
|Within 7 days from the receipt of|
|Verification of claims received under|
|Section 21(6A) (b) /|
|Application for appointment of AR||Within 2 days from verification of|
claims received under regulation
|Regulation 17(1)||Report certifying constitution of CoC||T+23|
|Section 22(1) /|
|1st meeting of the CoC|
of the CoC, but with seven days’
Within 7 days of filing of the report certifying constitution of the CoC, but with five days’ notice.
|Section 22(2)||Resolution to appoint RP by the CoC||In the first meeting of the CoC||T+30|
|Section 16(5)||Appointment of RP||On approval by the AA||……|
|Regulation 17(3)||IRP performs the functions of RP till the RP|
|If RP is not appointed by 40th day|
|Regulation 27||Appointment of valuer|
RP, but not later than 40th day of
Within 7 days of appointment of RP, but not later than 47th day of commencement.
|Section 12(A) /|
|Submission of application for withdrawal of|
|Before issue of EoI||W|
|CoC to dispose of the application||Within 7 days of its receipt or 7|
days of constitution of CoC,
whichever is later
|Filing application of withdrawal, if|
approved by CoC with 90% majority
voting, by RP to AA
|Within 3 days of approval by CoC||W+10|
|Regulation 35A||RP to form an opinion on preferential and|
|Within 75 days of the|
|RP to make a determination on preferential|
and other transactions
|Within 115 days of|
|RP to file applications to AA for|
|Within 135 days of|
|Regulation 36 (1)||Submission of IM to CoC||Within 2 weeks of appointment of|
RP, but not later than 54th day of
|Regulation 36A||Regulation 36A||Within 75 days of|
|Invitation of EoI
|Submission of EoI||At least 15 days from issue of EoI|
(Assume 15 days)
|Provisional List of RAs by RP||Within 10 days from the last day|
of receipt of EoI
|Submission of objections to provisional list||For 5 days from the date of|
|Final List of RAs by RP||Within 10 days of the receipt of|
|Regulation 36B||Issue of RFRP, including Evaluation Matrix|
|Within 5 days of the issue of the|
|Receipt of Resolution Plans||At least 30 days from issue of|
RFRP (Assume 30 days)
|Regulation 39(4)||Submission of CoC approved Resolution|
Plan to AA
|As soon as approved by the CoC||T+165|
|Section 31(1)||Approval of resolution plan by AA||T=180|
AA: Adjudicating Authority; AR: Authorised Representative; CIRP: Corporate Insolvency Resolution Process; CoC: Committee of Creditors; EoI: Expression of Interest; IM: Information Memorandum; IRP: Interim Resolution Professional; RA: Resolution Applicant; RP: Resolution Professional; RFRP: Request for Resolution Plan
(1) The insolvency professional, interim resolution professional or resolution professional, as the case may be, shall file the Forms, along with the enclosures thereto, on an electronic platform of the Board, as per the timelines stipulated against each Form, in the table below:-
|Form No.||Period covered and scope||To be filed by||Timeline|
|IP 1||Pre-Assignment: This includes consent to accept assignment as IRP / RP, the details of IP and the Applicant, the details of the person which will undergo the process, terms of consent, terms of engagement, etc.||IP||Within three days of signing of Form-2 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 or Form-AA of the Regulations, as the case may be.|
|CIRP 1||From Commencement of CIRP till Issue of Public Announcement: This includes details of IRP, CD, and the Applicant; admission of application by AA; public announcement; details of suggested Authorised Representatives; non-compliances with the|
provisions of the Code and other laws applicable to the CD; etc.
|IRP||Within seven days of making the Public Announcement under section 13.|
|CIRP 2||From Public Announcement till confirmation / replacement of IRP: This includes details |
Authorised Representative selected by IRPs for a class of creditors; taking over management of the CD; receipt and verification of claims; constitution of CoC, first meeting of CoC; confirmation / replacement of IRP; applications seeking cooperation of management (if any); expenses incurred on or by IRP; relationship of IRP with the CD, Financial Creditors and Professionals; support services taken from IPE: noncompliances
with the provisions of the Code and otherlaws applicable to the CD; etc.
|IRP||Within seven days of confirmation/ replacement of IRP under section 22.|
|CIRP 3||From Appointment of RP till issue of IM to Members of CoC: This includes details of RP; details of registered valuers; handing over of records of CD by IRP to RP; taking over management of the CD; applications seeking co-operation of management (if any); details in IM: non-compliances with the provisions of the Code and other laws applicable to the CD; etc.||RP||Within seven days of issue of IM to members of CoC under regulation 36.|
|CIRP 4||From Issue of IM till issue of RFRP: This includes expression of interest; RFRP and modification thereof; evaluation matrix and modification thereof;non -compliances with the provisions of the Code and other laws applicable to the CD; etc.||RP||Within seven days of the issue of RFRP under regulation 36B.|
|CIRP 5||From Issue of RFRP till completion of CIRP: This includes updated list of claimants; updated CoC; details of the resolution applicants; details of resolution plans received; details of approval or ejection of resolution plans by CoC; application filedwith AA for |
approval of resolution plan; details of resolution plan approved by the AA; initiation of liquidation, if applicable; expenses incurred on or by RP; appointment of professionals and the terms of appointment; relationship of the RP with the CD, Financial Creditors, and Professionals; support services taken from IPE; non-compliances with the provisions of the Code and other laws applicable to the CD; etc.
|RP||Within seven days of the approval or rejection of the resolution plan under section 31 or issue of liquidation order under section 33, as the case may be, by the AA.|
|CIRP 6||Event Specific: This includes;|
a. Filing of application in respect of preferential transaction, undervalued transaction, fraudulent transaction, and extortionate transaction;
b. Raising interim finance;
c. Commencement of insolvency resolution process of guarantors of the CD;
d. Extension of period of CIRP and exclusion of time;
e. Premature closure of CIRP (appeal, settlement, withdrawal, etc.);
f. Request for liquidation before completion of CIRP; and
g. Non-implementation of resolution plan, as approved by the AA.
|IRP or RP, as the case may be.||Within seven days of the occurrence of the relevant event.|
(2) The Board shall make available the Forms on the electronic platform and may modify them from time to time.
|If filed on||Fee (in Rupees)|
|29th October, 2020||0|
|30th October, 2020||0|
|31st October, 2020||500|
|Any day in November, 2020||1000|
|Any day in December, 2020||1500|
(4) The filing of a Form under this regulation after due date of submission, whether by correction, updation or otherwise, shall be accompanied by a fee of five hundred rupees per Form for each calendar month of delay after 1st January, 2020. Example: A Form is required to be filed by 30th January, 2020. It shall be filed along with a fee as under:
(5) The insolvency professional or interim resolution professional or resolution professional, as the case may be, shall be liable to any action which the Board may take as deemed fit under the Code or any regulation made thereunder, including refusal to issue or renew Authorisation for Assignment, for-
(i) failure to file a form along with requisite information and records;
(ii) inaccurate or incomplete information or records filed in or along with a form;
(iii) delay in filing the form.
Notwithstanding the time-lines contained in these regulations, but subject to the provisions in the Code, the period of lockdown imposed by the Central Government in the wake of COVID-19 outbreak shall not be counted for the purposes of the time-line for any activity that could not be completed due to such lockdown, in relation to a corporate insolvency resolution process.
- Refer Clarification dated 04.12.2020 regarding computation of fee payable for delay in filings under regulation 40B of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. To view the notification, Click Here.
- Substituted vide Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons (Second Amendment) Regulations, 2020 dated 25.03.2020. To view the notification, Click Here
Corrigendum to Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Amendment) Regulations, 2020, dated 14.02.2020
IBBI (Insolvency Resolution Process for Corporate Persons) (Amendment) Regulations, 2020 dated 12.02.2020
IBBI (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2020 dated 25.03.2020
IBBI (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2020 dated 29.03.2020
Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2019
The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2018 dated 3.07.2018