IBBI proposes to revamp the grievance redressal mechanism for registered service providers
- Blog|News|Insolvency and Bankruptcy Code|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 6 April, 2022
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1. Introduction
Insolvency and Bankruptcy Board of India (IBBI) has issued a discussion paper reviewing the grievance redressal and enforcement mechanism for the service providers registered with the IBBI.
The grievance and enforcement mechanism allow any person, aggrieved with any compelling issue, to file a complaint against the service provider(s), which inter-alia includes insolvency professionals (IPs), insolvency professional agencies (IPAs), and information utilities (IUs).
IBBI in its discussion paper highlighted the problem in the present mechanism of complaint redressal and enforcement action like delay in the enforcement process, the existing mechanism puts an excessive burden on the service providers, as they need to submit responses multiple times on a single issue.
Currently, the enforcement mechanism of handling complaints is time-consuming and therefore slow. Delays in the enforcement action are detrimental to the interest of stakeholders, leave the stakeholders unsatisfied, and deprive the other service providers of a chance to observe the contraventions held and actions taken by the Board and learn from mistakes committed by fellow service providers.
The proposed framework seeks to achieve the objective of an effective and time-bound redressal of the grievance filed by the stakeholders.
Considering the issues in the present mechanism it is imperative to redesign the grievance redressal and enforcement mechanism to make it more effective.
With an objective to revamp the grievance redressal mechanism for registered services provide, the IBBI has proposed to
(a) Enhance the scope of Insolvency Professional Agencies (IPAs)
(b) Revamp the process of investigation
(c) intimation to CoC/AA about the outcome of the order
(d) Reduction in various timelines for speedy disposal of grievances.
This write-up aims to provide a detailed analysis of the discussion papers as floated by IBBI.
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