Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) (Amendment) Regulations, 2022
Insolvency and Bankruptcy Board of India
Press Release No. IBBI/PR/2022/27 | Dated: 15th June 2022
Insolvency and Bankruptcy Board of India amends the Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) Regulations, 2017 and the Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017.
With a view to put in place, a streamlined and swift complaint handling procedure, the Insolvency and Bankruptcy Board of India notified the Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) (Amendment) Regulations, 2022 and the Insolvency and Bankruptcy Board of India (Inspection and Investigation) (Amendment) Regulations, 2022 to amend the Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) Regulations, 2017 and the Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017.
2. The Insolvency and Bankruptcy Code, 2016 (Code) read with Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) Regulations, 2017 provide mechanism for redressal of complaints and grievances filed against insolvency professionals, insolvency professional agencies and information utilities. Further the Code read with Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017 provide mechanism for carrying out inspections and investigations on insolvency professional agencies, insolvency professionals and information utilities and passing orders by Disciplinary Committee.
3. The mechanism of complaint/ grievance redressal and subsequent enforcement action has been amended to have expeditious redressal and also to avoid placing undue burden on the service providers. To curtail such delays and to ensure expeditious and result oriented enforcement mechanism, the Amendment Regulations provides for following:
- Revisions in various timelines related to enforcement process provided in the (Grievance and Complaint Handling Procedure) Regulations, 2017 and (Inspection and Investigation) Regulations, 2017 for addressing the issue of delay in present mechanism.
- Effective participation of IPAs in regulating the IPs through examination of grievances received against IPs.
- Intimation to Committee of Creditor (CoC)/ Adjudicating Authority (AA) about the outcome of Disciplinary Committee (DC) order.
3. The amended Regulations are effective from 14th June, 2022. These are available at www.ibbi.gov.in.
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INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
NOTIFICATION
New Delhi, the 14th June, 2022
Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) (Amendment) Regulations, 2022
No. IBBI/2022-23/GN/REG086.– In exercise of the powers conferred under section 196, 217 read with section 240 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Insolvency and Bankruptcy Board of India hereby makes the following regulations further to amend the Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) Regulations, 2017, namely:—
1. (1) These Regulations may be called the Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) (Amendment) Regulations, 2022.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) Regulations, 2017 (hereinafter referred to as ‘the principal regulations’), in regulation 3, for sub-regulation (5), the following sub-regulation shall be substituted namely: –
“(5) A grievance or a complaint shall be filed with the Board on its dedicated portal www.ibbi.gov.in”.
3. In the principal regulations, in regulation 6,
(i) in the short title, for the words “Disposal of grievance” the words “Disposal of grievance by the Board” shall be substituted.
(ii) in sub-regulation (2),
(a) for the word “fifteen”, the word “seven” shall be substituted.
(b) the following proviso shall be inserted, namely:—
“Provided that an additional time not exceeding seven days may be granted by the Board for submitting the information and records sought under sub-regulation (2) on the request of the service provider.”
(iii) in sub-regulation (3), for the words “forty-five” the word “thirty” shall be substituted.
(iv) in sub-regulation (4), for the words “forty-five” the word “thirty” shall be substituted.
4. In the principal regulations, after regulation 6, the following regulation shall be inserted, namely:—
“6A. Disposal of grievance by Insolvency Professional Agency.
(1) Notwithstanding anything contained in regulation 6, the Board may forward a grievance against an insolvency professional for disposal by the insolvency professional agency of which he is a professional member.
(2) On receipt of the grievance under sub-regulation (1), the insolvency professional agency shall dispose of the grievance in accordance with its bye-laws and intimate the Board within thirty days of receipt of grievance.”
5. In the principal regulations, in regulation 7,
(i) in sub-regulation (2),
(a) for the word “fifteen”, the word “seven” shall be substituted;
(b) the following proviso shall be inserted, namely:—
“Provided that an additional time, not exceeding seven days, may be granted by the Board on request of the service provider.”
(ii) for sub-regulation (3), the following sub-regulation shall be substituted:
“(3) The Board shall investigate the information and records and form an opinion whether there exists a prima facie case within thirty days of the receipt of the complaint.”
(iii) in sub-regulation (5), after the words “of such decision”, the words “within thirty days” shall be inserted.
(iv) for sub-regulation (7), the following sub-regulation shall be substituted, namely:—
“(7) Where the Board is of the opinion that there exists a prima facie case, it may issue a show cause notice under regulation 11 of the Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017 or order an investigation under Chapter III of Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017.”
RAVI MITAL, Chairperson
[ADVT.-III/4/Exty./123/2022-23]
Note: The Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) Regulations, 2017 were published vide notification No. IBBI/2017-18/GN/REG/21 on 07th December, 2017 in the Gazette of India, Extraordinary, Part III, Section 4, No. 461 dated 07th December, 2017.
