LI Network
Published on: 06 April 2023 at 14:45 IST
The NCLT has introduced new sub-regulations under Regulation 20 of the IBBI Regulations of 2017, and has issued a directive that enforces compliance with Regulation 20 (1A).
This directive was issued on April 3, 2023, and applies to individuals who are involved in Sections 7 and 9 of the Insolvency and Bankruptcy Code (IBC). Specifically, these individuals are required to provide their record of information utility, specifically the National E-Governance Services Limited (NeSL) certificate.
The purpose of this requirement is to ensure that their case is heard effectively and fairly, and to promote transparency and accuracy in the IBC proceedings, while preventing any possible fraudulent activity.
It is imperative for individuals to comply with this regulation to ensure that they follow the legal system’s rules and regulations and submit the necessary documentation to facilitate a fair and transparent hearing of their case.
A new regulation, known as 20(1A), was introduced to the Insolvency and Bankruptcy Board of India (Information Utilities) Regulations of 2016 on June 14th, 2022.
This regulation requires creditors to provide information on default to the relevant information utility before filing for corporate insolvency resolution process under section 7 or 9.
The information utility is then responsible for processing the information and issuing a record of default in accordance with Regulation 21.
The objective of this regulation is to simplify the insolvency resolution process and ensure that all parties involved follow the necessary procedures. By holding the information utility accountable for verifying and processing the debtor’s information, the legal system aims to increase efficiency and transparency in the IBC proceedings