Coronavirus lockdown: IBBI gives time-limit breather for IBC cases

The government had recently raised the threshold for default from Rs 1 lakh to Rs 1 crore to prevent triggering of insolvencies

The Insolvency and Bankruptcy Board of India (IBBI) has issued fresh guidelines that will give them more time on account of the lockdown.

The guidelines stated that “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 timeline for any activity that could not be completed due to such lockdown, in relation to a corporate insolvency  resolution process.”

The IBBI notification came into effect from March 29.  The government had recently raised the threshold for default from Rs 1 lakh to Rs 1 crore to prevent triggering of