A hammer and a gavel (Source: awesomecontent / Freepik)

Insolvency Board Notifies Regulations For Handling Complaints, Grievances

The Insolvency and Bankruptcy Board of India has notified the regulations for handling complaints and grievances filed by a complainant against a service provider.

“The Regulations provide an objective and transparent procedure for the disposal of grievances and complaints by the IBBI, that does not spare a mischievous service provider, but does not harass an innocent service provider,” said a statement by the Ministry of Corporate Affairs released today. The regulations came into effect from Dec. 7, the statement added.

The regulations could be useful for promoters of the 12 accounts referred for Insolvency and Bankruptcy Code resolution proceedings by the Reserve Bank of India.

The regulations will enable a stakeholder, namely: debtor, creditor, claimant, service provider, resolution applicant or any other person having an interest in an insolvency resolution, liquidation, voluntary liquidation or bankruptcy transaction under the Insolvency and Bankruptcy Code, 2016, to file a grievance or a complaint against a service provider, namely: insolvency professional agency, insolvency professional, insolvency professional entity or information utility, the statement said.

Also Read: Fear Of Courts Shouldn’t Deter Bad Loan Clean-Up, Says Insolvency Board Chief

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... 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 complaint may be redressed.
Ministry of Corporate Affairs

Besides, a stakeholder may file a complaint in the Specified Form along with a fee of Rs 2,500, the statement said, adding that if the complaint is not frivolous or malicious.

Also Read: IBC Ordinance Will Deter Future Defaulters, Says ICICI Bank’s Chanda Kochhar

BloombergQuint
Stay Updated With Insolvency News On BloombergQuint