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ARTICLE · 07 JULY 2021

Force Majeure And Insolvency

India witnessed a severe and unanticipated second wave of COVID-19 in April-June 2021.

IndiaCoronavirus (COVID-19)
  1. Introduction

India witnessed a severe and unanticipated second wave of COVID-19 in April-June 2021. This highly infectious second wave disrupted every aspect of day-to-day living including commercial activity. Performance of contractual obligations including timely implementation of approved resolution plans under the Insolvency and Bankruptcy Code, 2016 ("Code") was also impaired. Consequently, successful resolution applicants rushed to the NCLTs seeking relaxations in implementing approved resolution plans or rehabilitation of zombie companies.

This article analyses whether NCLTs are the appropriate forum for providing extension or any relief to a successful resolution applicant after approval of the resolution plan under the Code.

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The above is a generic analysis and should not be regarded as a substitute for specific advice based on the facts of a client’s objectives and specific commercial agreements reached. Please do reach out to us at [email protected] for any queries.

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