IBC – IBBI- Important Discussion Paper of 10 May 2024 on Record of Default by Information Utility alongwith the Draft Amendments inviting public comments
Strengthening the process of issuance of record of default by Information Utility is important process of effective resolution of stress.
As rightly said, the succession of IBC proceedings basically depends on availability of complete, correct and uptodate information of the debtor essential for speedy and effective resolution.
Information Utility is the repository of financial information about debtors and provide core services defined under Section 3(9) of the Code. Section 214 of the Code speaks about the obligations of IU. Secondly, it is mandatory for the financial / operational creditors to provide information of finance / assets to which security interest has been created in IU. In all important six issues and the proposals thereon are framed to strengthen the process of issuance of record of default (RoD) in the Discussion Paper. In addition, the economic rationale of the proposals is also under consideration.
