The National Company Law Tribunal in the case observed and has released a Circular dated 03.04.2023, wherein requesting the petitioner in Section 7 and Section 9 of the Insolvency Bankruptcy Code, 2016 proceedings for producing the record of Information Utility (the NeSL certificate) and the same being effective for hearing their case and in order to comply with the Regulation 20(1A) of Insolvency and Bankruptcy Board of India (Information Utilities) Regulation, 2016 (the Information Utility Regulation)
Background of the Case:
The court on June 14, 2022 inserted the regulation 20(IA) in the Insolvency and Bankruptcy Board of India (Information Utility) Regulations, 2016.
The regulation stated:
20. Acceptance and receipt of information
(1A) Before an application is filed to initiate corporate insolvency resolution process under section 7 or section 9 of the IBC as the case may be, thus, the information of default shall be filed by the creditor, with the information utility and the information utility shall process the information for the purpose of issuing records in an default with relation to the regulation 21.
However, the petitioner in the case files a plea under Section 7 or Section 9 of the Insolvency and Bankruptcy Code, 2016, the Regulation 20(1A), wherein it requires the petitioner to produce the record of Information Utility (the NeSL certificate) at the earliest for effective hearing of their case.
Further, the circular dated 03.04.2023 has been released by the National Company Law Tribunal, wherein the petitioner is requested to comply with Regulation 20(1A) of Information Utility Regulations.
