BVSS Webinar 25.04.2020

1. “Application of IBC during
current Covid-19 Scenario”
Webinar
BVSS IBC Group
Saturday,25rd April 2020
(1.30 to 3.30 evening)
25-04-2020 15.30Manoj Kumar Anand 9811280787 1

2. Presented by:
CA & IP Manoj Kumar Anand
for & on behalf of
BVSS IBC Group (As Panelist)
Topic:- Application of IBC during current
Covid-19 Scenario
Head Office: 2, Community Center, IIIrd Floor, Naraina, New Delhi-110028
Email id: ananandmanoja@gmail.com, Mobile: 9811280787
NEW DELHI I MUMBAI | KOLKATA | HYDERABAD | LUCKNOW I CHANDIGARH I GURUGRAM | PATHANKOT
25-04-2020 15.30Manoj Kumar Anand 9811280787 2

3. Application of IBC during current
Covid-19 Scenario
1. COVID-19 related orders
and notifications
2. Effect of Liquidity Crunch
Manoj Kumar Anand 9811280787 25-04-2020 15.30
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4. Application of IBC during current Covid-19 Scenario
(COVID-19 related orders and notifications)
Manoj Kumar Anand 9811280787 25-04-2020 15.30. 4
23/03/20 Supreme Court
(Suo Motto)
Limitations extended for all laws wef 15/03/20 till
further orders by exrecising inherent powers
under Article 142
29/03/20 IBBI New CIRP regulation 40 C introduced extending time
line under regulation 40B (Lockdown period by
Central Govt only)
30/03/20 NCLAT
(Suo Motto)
Time line extended u/s 12 (Lockdown period by
Central & State Govt)
17/04/20 IBBI New LP regulation 47 A introduced extending time line
under regulation 47 (Lockdown period by Central Govt
only)
No extension of Time Line for Voluntarily Liquidation Process under chapter V (sec 59)

5. Application of IBC during current Covid-19 Scenario
(COVID-19 related orders and notifications)
Manoj Kumar Anand 9811280787 25-04-2020 15.30. 5
23/03/20 Supreme Court
(Suo Motto)
Limitations extended for all laws wef 15/03/20 till
further orders by exrecising inherent powers
under Article 142
29/03/20 IBBI New CIRP regulation 40 C introduced extending time
line under regulation 40B (Lockdown period by
Central Govt only)
30/03/20 NCLAT
(Suo Motto)
Time line extended u/s 12 (Lockdown period by
Central & State Govt)
17/04/20 IBBI New LP regulation 47 A introduced extending time line
under regulation 47 (Lockdown period by Central Govt
only)
No extension of Time Line for Voluntarily Liquidation Process under chapter V (sec 59)

6. Application of IBC during current Covid-19 Scenario
(COVID-19 related orders and notifications)
Manoj Kumar Anand 9811280787 25-04-2020 15.30. 6
21/03/20 GST
(Clarifications
wrt GST for IBC
Companies)
Circular no. 134/04/2020- GST dated:
23rd March 2020 and Notification no.
11/2020-Central tax
20/03/20 DGFT
(ECA Circular
No. 32/2015-
20)
Institution and continuation of proceedings against
companies/firms under IBC, NCLT can Unless there
are specific directions by the National Company Law
Tribunal (NCLT) prohibiting proceedings under the
FT(D&R) Act/Rules, the Adjudicating Authority can
proceed under the FT (D&R) Act/Rules. However, the
liquidator shall be added as one of the respondent
along with the parties
23/04/20 IBBI Governance Structure wrt to Independent of the
Registered Valuers Organisation

7. Application of IBC during current Covid-19 Scenario
(COVID-19 related orders and notifications)
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20/04/20 IBBI Model Bye-Laws and Governing Board
of IPA New sub Clause 5 against
clause 12A & clause 7 inserted wrt
AFA certificate for time line of 30 days
upto 30.09.20
20/04/20 IBBI CIRP regulation 40B, for sub-regulation
(4),amendment wrt late filling of Forms by
IP to IPA with additional fees of
500/1000/1500
20/04/20 IBBI Insolvency Professionals regulation
amended to pay fees by IP& IPE for the
F.Y. 2019-20 by 30.06.20 to IPA

8. Application of IBC during current Covid-19
Scenario (COVID-19 related orders and notifications)
25-04-2020 15.30
Manoj Kumar Anand 9811280787
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24/03/20 MCA Increase in Limit u/s 4 from 1L to 1 Crore
1.Insolvency Law Committee in third report dated 20th February, 2020
recommended increase in limit to 50 lakhs but for operational
creditors limit to 5 lakhs only
2.IBC changed mind set of borrowers & resulted in revival of debt
market
3.Status of pending applications up to 24/03/20 Filling date is relevant
4.If admission date treated as relevant for increase in limit from 1L to 1
Cr
5.Status of demand note issued u/s 8 issued up to 24/03/20
6.Underlying objective is to help MSME :- Is it really helping them in
recovery (MSME Limits 25 L,5 Cr, 10 Cr etc), Sec 10 application
7.Alternate remedies under 138, BIFR, DRT, Sarfarsi, not very effective.

9. Application of IBC during current Covid-19 Scenario
(Effect of Liquidity Crunch)
1) Whole IBC Industry deeply effected especially Real
Estate, Hotel, Airlines
1) Virgin Airlines of Australia filled voluntarily bankruptcy
2) No new Investment as CASH in hand shall be preferred
2) Center of Gravity from IBC to other mode shall shift
for Bankers by FDI/Indians
1) Sec 29 A restrictions
3) F.C. (Banks) may go for OTS/12A withdrawal
instead of IBC route
1) Post dated Cheque bouncing (CTV Hyderabad ,Radhey
Sham Tandon Delhi
4) Liquidation may increase instead of Resolution
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10. Application of IBC during current Covid-19 Scenario
(Effect of Liquidity Crunch)
5) IBC work for IP, Advocates, Valuers etc shall
dwindle
6) Fees shall be reduced
7) Big challenges for ongoing assignments
1. 1010Valuations shall be deeply affected
mainly downgrading & time extension for
payment
2. Force Majeure being an epidemic
8) How AA/AAA/HC/SC adjudicate
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11. You