As the December 13 deadline for insolvency resolution inches closer, the Insolvency and Bankruptcy Board of India (IBBI) is likely to pull the strings tighter on recovering unpaid corporate dues. The IBBI may soon allow banks to attach assets of personal guarantors to recover loan defaults, ET Now reported citing sources. The IBBI is likely to notify it by December end.
Last month, the government amended the IBC law to bar wilful defaulters and defaulting promoters from bidding process during the insolvency proceedings, which was recently challenged in the Punjab and Haryana high court by a local company.
As many as 28 accounts that have been identified by the Reserve Bank of India in its second defaulters’ list are facing insolvency if they fail at the debt-restructure plan. In June, the RBI had identified 12 accounts for immediate insolvency, out of which, 11 accounts have been admitted by the National Company Law Tribunal (NCLT).
Meanwhile, the IBBI notified the regulations for the grievance-handling procedure under the Insolvency and Bankruptcy Code, wherein the filing fee will be refunded to the stakeholder in case the complaint is found to be not “frivolous or malicious.”
Depending on the complaint, the IBBI can order a probe or issue a show cause notice to the entities concerned. “The regulations provide for an objective and transparent procedure for disposal of grievances and complaints by the IBBI, that does not spare a mischievous service provider, but does not harass an innocent service provider,” the Corporate Affairs Ministry said.
Several cases have been filed under the Code and there have been instances of alleged complaints against entities involved in the insolvency process. Under the regulatory framework, a complaint can be filed against insolvency professional agency, insolvency professional, insolvency professional entity and information utility.