The Insolvency and Bankruptcy Board of India (IBBI) has recently announced changes to two regulations established in 2017. These amendments pertain to the Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) Regulations, as well as the Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations. This article will provide an overview of these modifications as well as their implications for the handling of insolvency and bankruptcy cases in India.
Understanding IBBI Regulations, 2017
Established in 2017, the Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) Regulations aim to provide a mechanism for resolving grievances and complaints against insolvency professionals, insolvency professional agencies, and information utilities. Likewise, the Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, also from 2017, are designed to manage inspections and investigations on insolvency professional agencies, insolvency professionals, information utilities, and orders passed by the Disciplinary Committee.
Main Points of the Recent Amendments
Notably, the recent amendments to these regulations concern revisions to the enforcement process timelines, specifically relating to the (Grievance and Complaint Handling Procedure) Regulations and the (Inspection and Investigation) Regulations. Aiding in addressing delays in the existing framework, these adjustments are expected to ensure more effective participation of the Insolvency Professional Agency (IPA) in regulating the Insolvency Professionals (IPs) through examination of grievances against IPs. The amendments also include informing the Committee of Creditor (CoC) or Adjudicating Authority (AA) about the results of Disciplinary Committee (DC) orders.
The Rationale Behind This Amendment
The primary reason for implementing these changes is to facilitate a quicker resolution process and prevent placing an undue burden on service providers. Expedited redressal will enable a smoother and more efficient process for all parties involved.
The Role of the Insolvency and Bankruptcy Board of India
The Insolvency and Bankruptcy Board of India, established in 2016 under the Insolvency and Bankruptcy Code, plays an integral role in the execution of the Code designed to consolidate and amend laws relating to the reorganization and insolvency resolution of corporate persons, partnership firms, and individuals. The Board’s tasks include maximizing the value of assets, promoting entrepreneurship, ensuring the accessibility of credit, and balancing the interests of stakeholders.
Unique in its dual role as both a regulator of a profession and processes, the IBBI has regulatory oversight over Insolvency Professionals, Insolvency Professional Agencies, Insolvency Professional Entities, and Information Utilities. It also serves as the ‘Authority’ under the Companies (Registered Valuers and Valuation Rules), 2017 for the regulation and development of the valuers’ profession within the country.
Source: Press Information Bureau, Government of India.