Bankruptcy and Bankruptcy Code, 2016 is a modern economic law. Under the Section 196 (1) of the Code, it is necessary for the Indian Bankruptcy and Bankruptcy Board (IBBI) to specify the necessary mechanisms for issuing rules and regulations before the notification of regulation, which includes conducting public counseling procedures. is. According to this concept and legal requirement IBBI has notified the Indian Bankruptcy and Bankruptcy Board (Procedure for issuing rules) Regulation 2018, so that the procedure for making rules and regulations and seeking suggestions from the general public can be conducted. It is notable that the regulation issued has been effective from October 22, 2018.
The Right to Regulate the Indian Bankruptcy and Bankruptcy Board
- Under Section 240 of the Code, the Indian Bankruptcy and Bankruptcy Board (IBBI) has been given the right to regulate. However, under these conditions, the following conditions must be followed :
के The provisions of the Code have to be implemented.
♦ Regarding the Code of Regulation and the rules made thereunder.
♦ Regulation should be made through the notification published in the Official Gazette.
♦ They will have to submit for 30 days in every House of Parliament as soon as possible.
- Keeping in view the importance of subordinate laws for various procedures under the Code, it is necessary that IBBI has a systematic and robust system in which to make effective rules and regulations and to work effectively with different stakeholders.
Rules for issuance of rules
- In the process of issuing rules, it has been made that IBBI will upload the following on their website with the approval board’s approval to make any modification or amendment in order to seek suggestions from the general public on them:
के On the draft of proposed rules and regulations.
के On the specific provision of the Code, under which the board has proposed rules and regulations.
♦ About the problem which is to be resolved under the proposed regulation.
विश्लेषण On the economic analysis of proposed rules and regulations.
के Regarding the statement of the standards recommended by international standards-fixing agencies, as well as the international best practices considered relevant to the proposed regulation.
के About the method of implementation of the proposed rules and regulations.
के Regarding the ways and means of seeking suggestions from the general public, process and timetable.
Process of regulation
- IBBI will give them at least 21 days to invite suggestions from the general public.
- It will look at suggestions received from the general public and upload these suggestions on their website with their usual procedure.
- IBBI will have to complete this work even before the date of notification of rules and regulations.
- If the operations board decides to approve them in the opposite form of the proposed regulation, then it will have to repeat the entire process related to regulation.
- After getting approval from the Board of Directors, the regulation should be notified immediately and generally they will have to apply after 30 days of the notification being issued, provided there is no separate date specified for their implementation.
- However, if IBBI appears to have made certain rules and regulations, or amendments in the existing regulation are very necessary, then it can make rules and regulations related to the approval of the operating board without applying the above-mentioned consultation process. Or modify the existing regulation.