1. Extension of CIRP due to COVID-19 outbreak as an exceptional circumstance
    1.  Supreme Court Stand:- The Hon’ble Supreme Court of India, in terms of the order dated 23rd March, 2020, has extended the period of limitation for corporate insolvency resolution proceedings before all Courts/ Tribunals in India with effect from March 15th, 2020 till further order(s) of the Apex Court in Suo Moto Writ Petition (Civil) No(s).03/2020.
    2. IBBI Stand:- Addressing the difficulties in complying the various activities which is required to be completed within the timelines prescribed in the CIRP, the Insolvency and Bankruptcy Board of India (“IBBI”) on March 29th, 2020, has amended the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (“CIRP Regulations”) by inserting Regulation 40C which states that “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.”
    3. NCLAT Stand:- Adding for clarity, 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 due to the unprecedented situation arising out of the spread of Covid-19 virus. 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” wherein the court has opined that the intervening period can be excluded for counting of the total period of 270 days of the resolution process if the CIRP is stayed by a court of law or the Adjudicating Authority or the Appellate Tribunal or the Hon’ble Supreme Court.
  2. Extension on panel fees on delay filing of form

 In the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, in regulation 40B, for sub-regulation (4), the following sub-regulation shall be substituted, namely: –

“(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 October, 2020.

  1. Enhancement of threshold limit for default

The Finance Nirmala Sitharaman today announced that, due to the emerging financial distress faced by most companies on account of the large-scale economic distress caused by COVID-19, it has been decided to raise the threshold of default under section 4 of the IBC 2016 to Rs 1 crore from the existing threshold of Rs. 1 lakh.

  1. New GST Registration for companies under CIRP

Vide notification No.11/2020- CBIC, dated 21.03.2020, the corporate debtor who is undergoing CIRP is to be treated as a distinct person of the corporate debtor and shall be liable to take a new registration in each State or Union territory where the corporate debtor was registered earlier, within thirty days of the appointment of the IRP/RP. Further, in cases where the IRP/RP has been appointed prior to the issuance of notification No.11/2020- Central Tax, dated 21.03.2020, he shall take registration within thirty days of issuance of the said notification, with effect from date of his appointment as IRP/RP.