NCLT Urges Petitioners To Comply With Regulation 20(1a) Of Information Utility Regulations
The National Company Law Tribunal (“NCLT”) has released a Circular dated 03.04.2023, requesting the Petitioners in Sections 7 and 9 of IBC proceedings to produce the record of Information Utility (NeSL certificate) for effective hearing of their case and comply with Regulation 20(1A) of Insolvency and Bankruptcy Board of India (Information Utilities) Regulation,...
The National Company Law Tribunal (“NCLT”) has released a Circular dated 03.04.2023, requesting the Petitioners in Sections 7 and 9 of IBC proceedings to produce the record of Information Utility (NeSL certificate) for effective hearing of their case and comply with Regulation 20(1A) of Insolvency and Bankruptcy Board of India (Information Utilities) Regulation, 2016 (“Information Utility Regulation”).
Brief background
Regulation 20(IA) was inserted in the Insolvency and Bankruptcy Board of India (Information Utility) Regulations, 2016 on 14.06.2022, which reads as follows:
“20. Acceptance and receipt of information.
(1A) Before filing an application to initiate corporate insolvency resolution process under section 7 or 9, as the case may be, the creditor shall file the information of default, with the information utility and the information utility shall process the information for the purpose of issuing record of default in accordance with regulation 21.”
When a Petitioner files a petition under Section 7 or 9 of the Insolvency and Bankruptcy Code, (“IBC”), the Regulation 20(1A) requires the Petitioners to produce the record of Information Utility (NeSL certificate) at the earliest for effective hearing of their case.
NCLT has released the Circular dated 03.04.2023 requesting the Petitioners to comply with Regulation 20(1A) of Information Utility Regulations.
File No.: 25/02/2023-NCLT