Decoded: Unravelling the legal tangle around revised bids for DHFL

The DHFL saga has put the spotlight on the legal ambiguity in accepting bids beyond stipulated deadlines

The DHFL saga, the first non-banking financial company to undergo Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, has put the spotlight on the legal ambiguity in accepting bids beyond stipulated deadlines.

Legal experts explain the issues involved.

Why is there legal ambiguity on accepting bids that come beyond announced deadlines or on submission of revised bids?

The ambiguity is over whether a resolution professional can accept Expression of Interest or resolution plans beyond the deadlines announced. The Code spells out model timelines to be followed with respect to each and every stage of the Corporate Insolvency