Man holds Insolvency and bankruptcy code IBC. | Photo Credit: designer491
Invites public comments on the discussion paper
Insolvency regulator IBBI proposes to redesign the framework of grievance redress and enforcement mechanism so as to make it effective as well as efficient in terms of time taken.
The proposed framework, detailed in a discussion paper, seeks to achieve the objective of an effective and time bound redress of the complaints/grievances filed by the stakeholders.
IBBI has now invited public comments on the discussion paper through electronic mode by April 21.
The discussion paper said that a time-bound enforcement mechanism will have a positive impact on the transparency of the institution and stakeholder confidence.
Further, a delay in enforcement mechanism may sometimes result in litigation which involves an additional cost on the service provider and IBBI.
Therefore, an effective enforcement mechanism would reduce the said litigation. Further an effective and time bound enforcement mechanism will also strengthen the trust of stakeholders in the process and the same may also result in increased stakeholder participation in the process. This may also have a positive impact on awareness of stakeholder about their rights, the discussion paper noted.
IBBI plans to revise timelines specified under grievance and complaint handlingprocedures as well as those specified under its inspection and investigation regulations.
To streamline the process, the complaints may be handled by the IBBI. The reviews arising out of such complaints may also be handled by the Board, provided the review is preferred by the complainant within 30 days of the disposal of the complaint.
The Board is also proposed to be empowered to forward grievances to the Insolvency Professional Agency for appropriate disposal.