The Government of Delhi had previously notified a special procedure to be followed by registered persons undergoing corporate insolvency resolution process. These corporate debtors are those registered persons who are having their affairs managed by Interim Resolution Professionals (IRPs) or Resolution Professionals (RPs) and they are to be regarded as a special class of persons. The said previous notification was dated 20th August 2020. The Government has on 26th August 2020, issued a notification amending the previous notification. This new notification is in effect from 5th May 2020.
The changes contemplated are as follows:
- The notification states that these class of persons shall not include corporate debtors who have furnished statements and returns under the Delhi Goods and Service Act, 2017 for the tax period before the appointment of the IRPs/ RPs.
- The time period for registration of such person is now stipulated as with 30 days of the appointment of IPRs/ RPs or by 30th June 2020, whichever is later. Prior to this, the specification of the date of 30th June was not provided.
For more information on the previous notification, read our article on Government of Delhi notifies special procedure for corporate debtors
