The Insolvency and Bankruptcy Code, 2016
IBBI (Inspection and Investigation Regulations) Regulations, 2017
Chapter IV – Consideration of Report
Regulation 13: Disposal of Show-cause notice.
13. (1) The Disciplinary Committee, after providing an opportunity of being heard to the noticee, shall dispose of the show-cause notice by a reasoned order.
1[(2) The Disciplinary Committee shall endeavour to dispose of the show-cause notice within a period of 2[sixty days from the due date for receipt of reply to the show-cause notice].]
(3) The order under sub-regulation (1) may provide for-
(a) closure of show-cause notice without any direction;
(b) warning;
3[(ba) suspension or cancellation of authorisation for assignment of an insolvency professional;]
(c) any of the actions under sub-sections (2), (3) and (4) of section 220;
(d) a reference to the Board to take any action under sub-section (5) of section 220 or sub-section (2) of section 236; or
(e) any other action or direction as may be considered appropriate.
(4) The order under sub-regulation (1) shall not become effective until thirty days have elapsed from the date of issue of the order, unless the Disciplinary Committee states otherwise in the order along with the reasons for the same.
4[(5) The order passed under sub-regulation (1) shall be served upon the service provider in an electronic form and be published on the website of the Board:
Provided that where the service provider is an insolvency professional, a copy of the order shall be sent to the insolvency professional agency of which he is a professional member.]
5[(6) The Disciplinary Committee shall in the order passed under sub-regulation (1) require the service provider-
(a) to discharge pending obligations, if any;
(b) to continue its functions till such time as may be directed, only to enable stakeholders to shift to another service provider; and
(c) to comply with any other directions.
(7) In case where the service provider is an insolvency professional, the Board shall intimate the order to all the members of committee of creditors of the insolvency resolution processes in which he is acting as an interim resolution professional or resolution professional, as the case may be, and to the Adjudicating Authority.]
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 sub-regulation (2):
“(2) The Disciplinary Committee shall dispose of the show-cause notice within a period of 180 days of the issue of the show-cause notice.”.
2. Substituted by the IBBI (Inspection and Investigation) (Amendment) Regulations, 2024 vide Notification No. IBBI/2024-25/GN/REG115 dated 13th August, 2024, w.e.f. 13.08.2024, for the words “thirty-five days of the date of the issuance of the show-cause notice”.
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 sub-regulation (5):
“(5) The order under sub-regulation (1) shall be issued to the noticee immediately, and be published on the website of the Board.”.
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 sub-regulation:
“(6) If the order under sub-regulation (1) suspends or cancels the registration of a service provider, the Disciplinary Committee may, if it considers fit, require the service provider to-
(a) discharge pending obligations, if any;
(b) continue its functions till such time as may be directed, only to enable clients to shift to another service provider; and
(c) comply with any other directions.”.
Access complete Bare Act here. To research Section and sub-section wise judgments, visit here.
Follow for daily updates: