New Timelines Under CIRP Regulations: Hits And Misses

The Insolvency and Bankruptcy Board of India ("Board") has, by way of a notification dated July 3, 2018 ¹ ("Notification"), amended the CIRP Regulations. Amongst the many amendments, the more notable ones relate to prescribing what may seem to be model timelines that would now apply to any corporate insolvency resolution process ("CIRP"). Under the un-amended Insolvency and Bankruptcy Code ("Code") and the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 ("Regulations"), there were many over lapping timelines and open ended clauses which led to multiple possible interpretations, causing confusion amongst stakeholders and consequent litigation delaying the entire process. This situation prompted the Board to introduce the new timelines under the Regulations which would help in avoiding such delays and provide more clarity to ensure timely completion of the process. Some of the timelines suggested are