NCLT Kolkata: Filing Of Default Information With Information Utility Under Rule 20(1A) Of IBBI (UI) Regulations 2017 Is Not Mandatory

The National Company Law Tribunal Kolkata comprising Smt. Bidisha Banerjee and Shri D. Arvind held that the filing of default information with Information Utility in compliance with Rule 20 of IBBI Regulations 2017 is not mandatory compliance. NCLT Verdict: The NCLT Kolkata admitted the CIRP application and held that the filing of default information with Information Utility in compliance with Rule 20 of IBBI Regulations 2017 is not mandatory compliance. Before filing an application to initiate corporate insolvency resolution process under section 7 or 9, as the case may be, the creditor shall file the information of default, with the information utility and the information utility shall process the information for the purpose of issuing record of default in accordance with regulation 21.” It observed that compliance with Rule 20 of IBBI Regulations 2017 about non-filing of “default information” with information utility is not mandatory compliance. Section 7 Initiation of corporate insolvency resolution process by financial creditor The financial creditor shall, along with the application furnish-- record of the default recorded with the information utility or such other record or evidence of default as may be specified; the name of the resolution professional proposed to act as an interim resolution professional; and any other information as may be specified by the Board.