In this article, Rajeev Kumar discusses step by step procedure for filing of complaint and grievance before the Insolvency and Bankruptcy Board of India.

The Insolvency and Bankruptcy Board of India came up with the regulations called Insolvency and Bankruptcy Board of India (Grievance and Complaint handling Procedure) Regulations, 2017 in reference with the section 196 (powers and functions of the Board) and section 240 (power to make regulations).

These regulations came into applicable from 07.12.2017. These regulations help IBBI for disposal of grievances and complaints in transparent manner against the mischievous service providers within the time bound. However, as per leading newspaper economics dated 08.12.2017, Senior Official of IBBI made the alleged delay in naming the resolution professional in the case involving Shree Shyam Metaliks and steel and Power. The National Company Law Tribunal (NCLT) has ordered the official Sreekara Rao, a deputy general manager of Insolvency and Bankruptcy Board of India to explain the reason behind it and why the action against him will be not taken up.

Meaning of Grievance under the Insolvency and Bankruptcy Board of India (Grievance and Complaint handling Procedure) Regulations, 2017

It is a written expression given by stakeholder of his suffering due to the conduct of a service provider or associated persons with it.

A proprietor, director, partner, officer or an employee of a service provider, a professional or a valuer engaged by a service provider or any other person acting for or on behalf of a service provider is called associated persons.

Further regulations define stakeholder who may be a debtor, a creditor, a claimant, a service provider, a resolution applicant and any other person having an interest in the insolvency, liquidation, voluntary liquidation, or bankruptcy transaction under the Code.

These regulations empowered the stakeholder who may be a creditor, a debtor, a service provider, a claimant, a resolution applicant and any other person having an interest in the insolvency, voluntary liquidation, liquidation or bankruptcy transaction under the Insolvency and Bankruptcy Code, 2016 to file the complaint and grievances against the service provider like an insolvency agency or an insolvency professional or an insolvency professional entity or an information utility.

The stakeholder may file the complaints and grievance in details that have caused suffering to them by the service providers. It enables IBBI to redress the complaint and grievance raised by stakeholder in transparent manner. These regulations help stakeholder in preventing and reducing the suffering caused by the service providers.

Meaning of Complaint under the Insolvency and Bankruptcy Board of India (Grievance and Complaint handling Procedure) Regulations, 2017

A complaint as a written expression by a stakeholder alleging contravention of any provision of the Code or rules, regulations or guidelines made thereunder or circulars or directions issued by the Board by a service provider or any of its associated persons and includes a complaint-cum-grievance.

Section 2(f) defines the expression complaint-cum-grievance as a complaint and grievance in the same matter.

Grievances need to file by stakeholders with the Board

As per the regulations act 2017, the grievance shall state in details of the identity of the aggrieved, the concerned service providers, conduct of the service provider who has caused the suffering of the aggrieved, suffering whether pecuniary or otherwise, how the conduct of the service provider has caused the suffering of the aggrieved and details of his efforts to get the grievance redressed from the service provider and how the grievance may be redressed.

PROCEDURE FOR FILING OF GRIEVANCE AND COMPLAINT

A stakeholder who wants to register a complaint needs to file it with the board in Form A.

The following information is required by stakeholders to file a complaint or grievance prior to fill the Form A,

• Address of the Board.
• Name of the complainant
• Identity of the complainant – Aadhaar No / CIN
• If complaint is filed on behalf of the stakeholder/ complainant – Authorised representative Name is to be mentioned.
• Aaadhar No is to be provided for the proof of the Identity of the authorised representative.
• Complete address with Email ID & Phone No of complainant / authorised representative is to be provided for future correspondence.
• Name of the service provider / its associated persons whom complained to be registered.
• Aaadhar No/CIN (If known) is to be provided for the proof of the Identity of the service provider.
• Complete address along with Email ID & Phone No of the service provider. Details of the alleged contravention of any provision of the Code or rules, regulations, or guidelines made thereunder or circulars or directions issued by the Board by a service provider or its associated persons.
• Details of alleged conduct or activity of the service provider or its associated persons, along with date and place of such conduct or activity, which contravenes the provision of the law. Details of suffering, whether pecuniary or otherwise, the complainant has undergone.
• How the conduct or activity of the service provider or its associated persons has caused the suffering of the complainant or to any other stakeholder.
• Details of evidence are to be provided in support of alleged contravention.
• Does the complainant have a grievance? If so, how it may be redressed?
• Explain the reasons for delays If complaint is not filed within forty-five days of the occurrence of the cause of action for the complaint.
• Whether the fee of Rs.2500 has been credited to the IBBI? Amount can be paid to IBBI through Demand Draft or online.
• The details of the bank account and the complainant to be provided in order to refund the fee to the stakeholder when the registered compliant found to be not “frivolous or malicious.
• Complainant can keep their identity confidential; hence same need to be confirmed in form A i.e. Yes or No.

Following documents to be attached for proof of the complaint:

1. Authorization letter in case complaint is registered on behalf of the stakeholder.
2. Original Demand draft or transaction receipt for online transaction for an amount of Rs.2500 towards the fee to the account of the Board;
3. Any other details in support of the complaint.
4. The Form A to be submitted along with demand draft for an amount of rupees two thousand and five hundred in favour of the Insolvency and Bankruptcy Board of India payable at New Delhi towards the fee.
5. Rupees two thousand and five hundred can be also be paid through online to the boards towards the fee.
6. A grievance or a complaint is required to file within forty-five days of the occurrence of the cause of action for the grievance or the complaint. A grievance or a complaint may be filed after the 45 days with the sufficient reasons which justifying the delay but delay period should not exceed 30 days.
7. A stakeholder can also file a grievance or a complaint online with the Board online. In such case a grievance or complaint shall be filed by mail at [email protected] or by post or hand delivery at the Office of the Board, until the Board provides a facility for online filing of grievances and complaints

IDENTITY OF THE STAKEHOLDER

• Regulation shall disclose the identity of filing stakeholders namely debtors, creditors etc or their authorised representative who is authorised to file a complaint or grievances.
• Board can keep the confidential the identity of stakeholders who are filing the complaint or grievances, on their request unless its disclosure is necessary to display for processing the grievance or complaint or under any law as per regulations.

UNIQUE REGISTRATION NUMBER

• A stakeholder will receipt a unique registration number assigned by the board to every grievance and every complaint and registration number will be communicated to the aggrieved or the complainant within a week of receipt of complaint or grievances.
• Board may club the grievance or complaints together for disposal when compliant or grievance receipt are more than one and in the same matter.
• The board will not accept any cognizance of any anonymous grievance.

PROCEDURE FOR DISPOSAL OF GRIEVANCE

• The board may obtain additional information and records from the aggrieved and concerned service provider in order to decide whether grievance requires any redress by the service provider.
• Information and records sought by the board from the aggrieved and concerned service provider to be submitted within fifteen days thereof.
• If grievance found by the board does not require redress then he will close the grievance within forty-five days of its receipt.
• In case if it is required to redress the grievance then the board will order the service provider to redress the grievance within forty-five days of its receipt.

PROCEDURE FOR DISPOSAL OF COMPLAINT

• The board of IBBI may ask further additional information and records from the complainant and concerned service provider in order to get a prima facie view to verify whether the alleged complaint is correct or not.
• The information and records sought by the board has to be submitted within 15 days by the complainant and service provider.
• The boards will analyse the case based on the received information and records from complainant and service provider and the make the opinion within 45 days of the receipt of the compliant whether the case is prima facie or not. If cases found does not exist a prima facie then board will be communicated to them.
• If the complainant is not satisfied with the decision of the board, they may request a review of decision given by the board. Further the board shall persuade the review within thirty days of the receipt of review with an opinion whether case is prima facie by an order.
• If board found exists case is prima facie they may order for inspection, investigation or issue a show cause as may be warranted as per the regulations.
• When board opinion is to found to be not frivolous, deposited amount fee rupees two thousand five hundred rupees will be refunded to the stakeholder.

STATISTICS SUMMARY

As per the regulations, it is necessary to display the summary statistics about receipt and disposal grievances and complaints on its web site by the Board.

A large number of cases have been registered after the Insolvency and Bankruptcy Board of India (Grievance and Complaint handling Procedure) Regulations, 2017. As per the leading newspapers of India as on December 2017, total 470 cases were acknowledged by The National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Board of India and in which there are 12 big cases are corporate defaulters. As per RBI data over 4300 applications were filed in all over the National Company Law Tribunal (NCLT) as on November 2017 under the corporate insolvency resolution process (CIRP).

Videocon and Jaiprakash Associates Limited (JAL) are in the hit list of defaulters as per the RBI under the Insolvency and Bankruptcy Code, 2016. Apex court asked to JAL to deposit Rs 550 Crore towards the defaulting loan of IDBI.

As per RBI report total, outstanding debt amount as on September 2017 for top 50 borrowers in India is Rs 3,72,379 crore, which funded by scheduled commercial banks.

Time has come to watch how such huge cases will be sorted out in the time bound manner and it is becoming the question mark whether IBBI board is sufficient to handle such huge number cases. Now Government of India needs to designed methodology to speed up the resolution process of Insolvency and Bankruptcy defaulters.

A stakeholder has to pay fee Rs 2500/- for a complaint with duly filled specified form to the board of IBBI, which may be refunded if the case found to be not frivolous or malicious. Details of the complaint to be narrated in the complaint form by the stakeholder how, when and where the service provider has caused the suffering to the stakeholder or complainant. Depending on the nature complaint IBBI may inspect, investigate or issue the show cause notice to the service provider.

Footnote

1. http://www.ibbi.gov.in/
2. http://www.mca.gov.in/MinistryV2/insolvency+and+bankruptcy+code.html
3. https://economictimes.indiatimes.com/industry/services/property-/-cstruction/jp-associates-jsw-keen-on-resolution-of-jaypee-infra/articleshow/61631308.cms
4. http://www.mondaq.com/india/x/660778/Insolvency+Bankruptcy/The+Insolvency+And+Bankruptcy+Board+Of+India+Grievance+And+Complaint+Handling+Procedure+Regulations+2017
5. https://taxguru.in/corporate-law/ibbi-grievance-complaint-handling-procedure-regulations-2017.html
6. http://corporatelawreporter.com/2017/12/12/ibbi-notifies-regulations-for-handling-of-grievances-and-complaints
7. http://pib.nic.in/newsite/PrintRelease.aspx?relid=174227
8. https://www.taxmanagementindia.com/web/tmi_blog_details.asp?id=502413&kw=Insolvency-and-
9. https://www.makaan.com/iq/news-views/jaypee-in-insolvency-case-home-buyers-to-raise-claims-till-august-24