Insolvency related plaints - detailed framework notified
Published: Dec 11, 2017
By TIOLCORPLAWS News Service
MUMBAI, DEC 11, 2017: THE Insolvency and Bankruptcy Board of India (IBBI) has notified regulations for handling complaints and grievances filed against service providers including insolvency professionals, agencies and information utilities. These regulations came into effect from December 7, 2017. The Regulations provide for an objective and transparent procedure for disposal of grievances and complaints by the IBBI, that does not spare a mischievous service provider, but does not harass an innocent service provider.
A Stakeholder may file a grievance that shall state the details of the conduct of the service provider that has caused the suffering to the aggrieved; details of suffering, whether pecuniary or otherwise, the aggrieved has undergone; how the conduct of the service provider has caused the suffering of the aggrieved; details of his efforts to get the grievance redressed from the service provider; and how the grievance may be redressed.
A Stakeholder may file a complaint in the Specified Form along with a fee of Rs.2,500. A complaint needs to state the details of the alleged contravention of any provision of the Code, or rules, regulations, or guidelines made there under or circulars or directions issued by the IBBI by a Service provider or its associated persons; details of alleged conduct or activity of the Service provider or its associated persons, along with date and place of such conduct or activity, which contravenes the provision of the law; and details of evidence in support of alleged contravention. If the complaint is not frivolous or malicious, the fee will be refunded.
Where the IBBI is of the opinion that there exists a prima facie case, it may order an inspection and an investigation or issue a Show Cause Notice under the IBBI (Inspection and Investigation) Regulations, 2017, as may be warranted and the matter shall be proceeded accordingly.
