IBBI asks resolution professionals to upload judicial orders quickly

  • The government is keen to ensure a free flow of information so that informed decisions are made at various levels, as timely access to information has a bearing on the value of assets and is critical for making investment decisions.

Gireesh Chandra Prasad
First Published10 May 2024
The idea is to improve efficiency in information sharing with the parties in the bankruptcy ecosystem to achieve better outcomes from debt resolution. (Photo: Mint)
The idea is to improve efficiency in information sharing with the parties in the bankruptcy ecosystem to achieve better outcomes from debt resolution. (Photo: Mint)

New Delhi: The Insolvency and Bankruptcy Board of India (IBBI) has asked debt resolution professionals to upload orders from tribunals and courts quickly on a portal designated by the regulator, as judicial rulings have an impact on the ongoing bankruptcy cases.

This, the insolvency regulator said, would ensure that important judicial orders that can have a significant impact on the ongoing proceedings under the Insolvency and Bankruptcy Code (IBC) are available for stakeholders in a timely manner.

The regulator said that orders like admission of bankruptcy petitions, approval of corporate rescue plans and liquidation orders issued by tribunals and decisions by high courts and the Supreme Court involving the government, the regulator or interpretation of law have to be quickly disseminated.

Also, court orders relating to the extent of the authority of a law or code and applicability of the bankruptcy code, rules and regulations have to uploaded by the professionals, who have first-hand access to them.

The idea is to improve efficiency in information sharing with the parties in the bankruptcy ecosystem to achieve better outcomes from debt resolution. 

Also Read | IBBI cracks the whip on a dozen insolvency professionals

The move comes at a time the government is preparing to put in place a technology platform that would connect all players in the distressed assets market, including lenders, administrators of bankrupt firms, tribunals and courts, the regulator and the ministry of corporate affairs. The government is keen to ensure a free flow of information so that informed decisions are made at various levels, as timely access to information has a bearing on the value of assets and is critical for making investment decisions.

IBBI said that resolution professionals also have to upload tribunal orders on closure or withdrawal of bankruptcy proceedings as well as settlements, stay orders and the final orders on preferential, undervalued, fraudulent and extortionate credit transactions and fraudulent and wrongful trading. Professionals also have to upload any other tribunal order having an actionable point for the regulator.

Insolvency resolution professionals have been directed to upload only the orders published at the official websites of the respective forum, explained Yogendra Aldak, partner at Lakshmikumaran & Sridharan Attorneys.

“This step will ensure that stakeholders are not restricted from accessing orders which may have a significant impact on the ongoing resolution process due to their inability to navigate the unfamiliar portals or websites of these forums which are otherwise designed to be used by individuals with a legal background. This step of the IBBI is surely going to make the process more accessible for all stakeholders and ensure greater transparency,” said Aldak.

Improving the outcome of bankruptcy proceedings—salvaging as many sick companies as possible in the shortest time has been a priority for the government. IBBI has been constantly refining the procedures, including the bidding process of stressed assets, in order to save time and costs for the parties involved. The number of resolution plans approved in FY24 had crossed 250 by February-end on account of rule changes and filling up of vacancies in tribunals, Mint had reported on 27 March.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.MoreLess
HomeNewsIndiaIBBI asks resolution professionals to upload judicial orders quickly

Most Active Stocks

Tata Steel

179.85
10:29 AM | 21 JUN 2024
-2.5 (-1.37%)

Bharat Electronics

305.00
10:27 AM | 21 JUN 2024
-7.05 (-2.26%)

ITC

419.60
10:28 AM | 21 JUN 2024
-3.75 (-0.89%)

Vedanta

469.95
10:29 AM | 21 JUN 2024
-0.3 (-0.06%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Railtel Corporation Of India

476.20
10:27 AM | 21 JUN 2024
41.8 (9.62%)

Titagarh Rail Systems

1,584.25
10:29 AM | 21 JUN 2024
89.05 (5.96%)

Rail Vikas Nigam

409.70
10:28 AM | 21 JUN 2024
22.35 (5.77%)

Honasa Consumer

449.85
10:26 AM | 21 JUN 2024
23.5 (5.51%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    74,710.000.00
    Chennai
    74,128.000.00
    Delhi
    74,637.000.00
    Kolkata
    74,128.000.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.75/L-0.13
    Kolkata
    103.94/L0.00
    New Delhi
    94.72/L0.00
    OPEN IN APP
    HomeMarketsPremiumInstant LoanGet App