The Insolvency and Bankruptcy Code, 2016
IBBI (Inspection and Investigation Regulations) Regulations, 2017
Chapter IV – Consideration of Report
Regulation 12: Show-cause notice.
12. (1) The show-cause notice shall be in writing and shall state-
(a) the provisions of the Code under which it has been issued;
(b) the details of the alleged facts;
(c) the details of the evidence in support of the alleged facts;
1[(d) the provisions of the Code, rules, regulations and guidelines thereunder allegedly violated, or the manner in which the public interest is allegedly affected;]
(e) the actions or directions that the Board proposes to take or issue, if the allegations are established; 2[**]
(f) the time within which the noticee may make written submission.
3[(g) the manner in which service provider is required to respond to the show cause notice; and
(h) consequences of failure to respond to the show-cause notice.]
(2) For the purposes of clause (e) of sub-regulation (1), the Board shall take into account, but not limited to, the following factors: –
(a) the nature and seriousness of the alleged contraventions, including whether it was deliberate, reckless or negligent on the part of the noticee;
(b) the consequences and impact of the alleged contravention, including –
(i) unfair advantage gained by the noticee as a result of the alleged contravention;
(ii) loss caused, or likely to be caused, to 4[stakeholders] or any other person as a result of the alleged contravention; and
(iii) the conduct of the noticee after the occurrence of the alleged contravention, and prior to the alleged contraventions.
(3) The show-cause notice shall provide 5[fifteen] days to the noticee to make a written submission.
(4) The show-cause notice shall state, if a noticee fails to respond under sub-regulation (3) within the given time, it shall be disposed of based on the material available on record.
(5) The show-cause notice shall enclose copies of relevant documents and extracts of relevant portions from the report of investigation or inspection, or other records.
6[(6) A show-cause notice shall be served on the service provider in electronic form at the email address provided by the service provider to the Board and a copy shall also be sent by registered post.]
(7) The Board shall refer the show-cause notice to the Disciplinary Committee alongwith all the relevant records including the written submissions, if any, made by the noticee in the matter.
References
1. Substituted by IBBI (Inspection and Investigation) (Amendment) Regulations, 2022 vide Notification No. IBBI/2022-23/GN/REG087 dated 14th June, 2022, w.e.f. 14.06.2022, for the clause (d):
“(d) the provisions of the Code, or the rules, regulations or guidelines made thereunder, allegedly violated;”.
2. Omitted by IBBI (Inspection and Investigation) (Amendment) Regulations, 2022 vide Notification No. IBBI/2022-23/GN/REG087 dated 14th June, 2022, w.e.f. 14.06.2022, the word “and”.
3. Inserted by IBBI (Inspection and Investigation) (Amendment) Regulations, 2022 vide Notification No. IBBI/2022-23/GN/REG087 dated 14th June, 2022, w.e.f. 14.06.2022.
4. Substituted by IBBI (Inspection and Investigation) (Amendment) Regulations, 2022 vide Notification No. IBBI/2022-23/GN/REG087 dated 14th June, 2022, w.e.f. 14.06.2022, for the word “clients” wherever it occurs.
5. Substituted by IBBI (Inspection and Investigation) (Amendment) Regulations, 2022 vide Notification No. IBBI/2022-23/GN/REG087 dated 14th June, 2022, w.e.f. 14.06.2022, for the words “at least 21“.
6. Substituted by IBBI (Inspection and Investigation) (Amendment) Regulations, 2022 vide Notification No. IBBI/2022-23/GN/REG087 dated 14th June, 2022, w.e.f. 14.06.2022, for the sub-regulation (6):
“(6) A show-cause notice issued shall be served on the noticee-
(a) by sending it to the noticee at its registered office, by registered post with acknowledgement due; and
(b) by an appropriate electronic form to the email address provided by the service provider to the Board.”.
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