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Informist, Wednesday, Apr. 15, 2026

 

NEW DELHI – The Insolvency and Bankruptcy Board of India Wednesday suggested that in cases where debtors dispute the information about default provided by financial institutions in the corporate insolvency resolution process, its record in the information utilities will be shown as "information of dispute". This would enhance transparency and assist stakeholders and the National Company Law Tribunal benches in distinguishing disputed defaults from authenticated records, said the board. The last date for submitting comments on the proposed changes is Apr. 28.

 

Information utilities are centralised, regulated repositories in India that store authenticated, electronic, and undisputed data regarding debts, defaults, and security interests. They play a key role under the Insolvency and Bankruptcy Code, 2016, by providing reliable evidence for legal processes, fostering transparency, and aiding in rapid insolvency resolution. These utilities provide evidence of default for the tribunal to expedite case resolution, essential for initiating corporate insolvency proceedings.

 

The board proposed that the information utilities record an "authenticated" status and issue a record of default in cases where the debtor confirms the information of default or the debtor does not respond even after the prescribed reminders. The proposed changes will preserve the evidentiary value of record of default as the primary output of information utilities and will provide clarity in cases involving disputes, including partial disputes, said the board.

 

Further, the board suggested rationalisation of various forms in the corporate insolvency resolution process, alignment of terminology with the Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017 and IBBI (Grievance and Complaint Handling Procedure) Regulations, 2017 after the recent amendments to the Insolvency and Bankruptcy Code, 2016. Essentially, changes such as including insolvency professionals under the definition of service provider under the recent amendments should be reflected in both the Insolvency and Bankruptcy Board of India 2017 Regulations.  End

 

Reported by Surya Tripathi

Edited by Ashish Shirke

 

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