New Delhi, 22nd May, 2024: NCLT & IBC Committee of PHDCCI organized a Virtual Roundtable on IBBI Discussion Paper Dt. 10.05.2024 on “Strengthening the Process of Issuance of Record of Default of Information Utility on 17th May 2024. It was a very fruitful discussion wherein each participant got to learn about the intricacies on the subject which, in turn, proved to be a valuable platform for knowledge exchange.
Mr. G P Madaan, Chair, NCLT & IBC Committee, PHDCCI, in his opening remarks lauded the initiative of IBBI in amending the Regulations in order to strengthen the process of issuance of Record of Default (RoD) by Information Utility (IU). He further stated once the proposed amended regulations are issued and implemented, the RoD may become conclusive evidence before the NCLT, and it’ll save considerable time of NCLT in admissions of applications under sections 7&9 of IBC, 2016.
Ms. Manisha Chaudhary, Co- Chair, NCLT & IBC Committee, PHDCCI mentioned that the Record of Default in its present or suggested amended form cannot be taken as conclusive proof, and its constitutional validity may be questioned. Also the IB code has to provide for specific provisions making it mandatory for the debtors and creditors to provide docs/ info to ensure correct Records of Default (RoD) so as to enable verification of claims by IPs and effective adjudication by the Hon’ble Adjudicating Authorities.
Mr. Karan Mehra, Co- Chair, NCLT & IBC Committee, PHDCCI acknowledged the need of the time to strengthen the processes of collecting information regarding the defaults of the corporate debtor. A through back hand due diligence on part of the financial/operational creditor and the IU before uploading the Record of Default would offer conclusivity to evidence and also greatly assist the AA in adjudicating the CIRP petitions in an expeditious manner.
Dr. Jatinder Singh, Assistant Secretary General, PHDCCI extended his heartfelt thanks to all the learned speakers and participants for their valuable contributions and engaging interactions during this enlightening session.
The Committee has decided to hold more such Virtual Discussions for the benefit of the stakeholders.