The Government has been issuing numerous advisories, notifications and relaxations to enable companies to face the hardships caused by the spread of COVID-19 and equip them to better handle the situation. The Courts have also been very proactive in granting various reliefs. In this section, we give you ready access to some of the key Government notifications, advisories, court orders and notices released this week.
12 December 2020
NCLT, Indore commences e-filing of application/petition/appeal/reply etc.
The RBI has revised its detailed FAQs on Resolution Framework for Covid-19 related stress on 12 December 2020. It has inserted a new FAQ No. 18 providing clarity on whether invocation under the Resolution Framework requires the borrower to submit a specific resolution plan which the lenders must agree to implement before 31 December 2020.
The Resolution Framework states that resolution may be invoked not later than 31 December 2020 and must be implemented within 90 days from the date of invocation for Personal Loans. For all other eligible exposures of lending institutions except personal loans, resolution may be invoked not later than 31 December 2020 and must be implemented within 180 days from the date of invocation.
The RBI has now clarified that the Resolution Framework does not require a resolution plan to be submitted to the lending institutions at the time of request for invocation and the borrower is merely required to submit a request to the lending institutions for being considered under the Resolution Framework. The lending institutions will then take an in-principle decision on invoking the Resolution Framework. After such invocation, the specifics of the resolution plan may be decided by the lending institutions, in consultation with the borrower. For personal loans, the resolution plan must be implemented within 90 days from the date of invocation, while for all other loans a period of 180 days from the date of invocation has been provided.
Please click here to access the revised FAQs.
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