What are the new norms notified for handling of Grievances and Complaints?
The Insolvency and Bankruptcy Board of India (IBBI) has notified the IBBI (Grievance and Complaint Handling Procedure) Regulations, 2017 in the Gazette of India on 7th December,2017.
The regulations will have an objective and transparent procedure for disposing of grievances and complaints by the Insolvency and Bankruptcy Board of India. It does not spare a mischievous service provider, but also does not harass an innocent service provider.
Official site, Insolvency and Bankruptcy Board of India, Retrieved on 11th December 2017
The regulations will be applicable to the stakeholder such as debtor, creditor, claimant, service provider, resolution applicant. Also any other person having an interest in an insolvency resolution, liquidation, voluntary liquidation or bankruptcy transaction under the Insolvency and Bankruptcy Code, 2016 (Code). They can file a grievance and also complaint against a service provider. Service providers here means insolvency professional agency, insolvency professional, insolvency professional entity or information utility.
In What circumstances a stakeholder can file grievance or complaints?
A stakeholder may file a grievance or a complaint that shall contain details regarding the sufferings or wrong doing of service provider to the aggrieved person. Also provide with details of his efforts for getting it redressed and also how the grievance may be redressed.
A stakeholder can file a grievance or also complaint through a specified form along with prescribed fess of rupees 2500. A complaint should contain details of failing to comply with any provisions of code or rules regulations and also guidelines laid down by Insolvency and Bankruptcy Board of India by a service provider or also its associated persons. Also provide details of conduct or activity of the service provider or its associated persons and with date
and place and details of evidence in support of alleged contravention.
Where the IBBI is of the opinion that there exists a prima facie case then it may order
- an inspection under sub-regulation (3) of regulation 3,
- order an investigation under sub-regulation (2) of regulation 7 or
- issue a show cause notice under sub-regulation (2) of regulation 11 of the Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017