The regulations are effective from December 7, a Finance Ministry release said here, adding they "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".
"Stakeholders who can file a complaint include debtors, creditors, claimants, service providers, resolution applicants or any other person having an interest in an insolvency resolution, liquidation, voluntary liquidation or bankruptcy transaction under the Insolvency and Bankruptcy Code (IBC), 2016," it said.
"On the other hand, a service provider, against whom a complaint can be filed by a stakeholder under the Regulations, includes insolvency professional agency, insolvency professional, insolvency professional entity or information utility," it added.
Stakeholders will need to pay a fee of Rs 2,500 along with the complaint.
"If the complaint is not frivolous or malicious, the fee will be refunded," the Ministry said.
As regards the working of the IBBI, set up under the IBC, which, became operational in December 2016 and provides for a time-bound insolvency resolution process, 11 out of the 12 cases chosen by the Reserve Bank to undergo bankruptcy proceedings are in the process of auctioning their assets.
Another 29 companies have also been identified by the RBI and are set to head to the bankruptcy court if the banks are unable to resolve their cases by December 13.
Last month, the government brought in an ordinance to prevent wilful defaulters and promoters who have not settled their debts from bidding in the auctions for stressed assets, to block failed promoters from regaining control of companies facing insolvency proceedings and also curb promoters of companies identified for insolvency proceedings from bidding for their stressed assets.
The government also announced last month that insolvent corporates seeking a resolution plan under the new law will now be subject to more stringent tests regarding creditworthiness and credibility by the IBBI.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
Doraiah Chowdary Vundavally is a Software engineer at VTech . He is the news editor of SocialNews.XYZ and Freelance writer-contributes Telugu and English Columns on Films, Politics, and Gossips. He is the primary contributor for South Cinema Section of SocialNews.XYZ. His mission is to help to develop SocialNews.XYZ into a News website that has no bias or judgement towards any.
This website uses cookies.