Insolvency and Bankruptcy Board of India (IBBI)

Introduction-
The Insolvency and Bankruptcy Code, 2016 which was enacted by the Indian Parliament to consolidate and amend the existing laws relating to insolvency and bankruptcy in the country, established the Insolvency and Bankruptcy Board of India ( IBBI) in the year 2016. It is a very essential and important board of the government. Section 188 (2) of the Code provides that the Board shall be a body corporate having perpetual succession and a common seal, with power, subject to the provisions of this Code, to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall, by the said name, sue or be sued .

The Insolvency and Bankruptcy Board of India (IBBI) is a very crucial authority. It oversees both professions and transactions. IBBI is responsible for implementing the IBC and amending legislation for insolvency resolution of corporate people, partnership companies, and individuals in a timely way in order to maximize the worth of such a persons assets.
Its main functions include registering insolvency professionals and insolvency professional agencies, regulating the insolvency process, and promoting the development of an efficient insolvency system in India.

Composition -
All the members of the board are appointed by the Central Government. The board in total consists of 10 members.
1. One of them is the chairperson of the IBBI.
2. Another person is a member nominated by The Reserve Board of India (RBI), exofficio.
3. Three members are officers of the Central Government who are equivalent or not below the rank of a Joint Secretary. Each of these three members will represent the Ministry of Law, Ministry of Finance, and Ministry of Corporate Affairs, exofficio.
4. The other five members are nominated by the central government, out of which at least three should be working as whole-time members.

The appointment of the Chairperson and the members of the Board other than the appointment of an ex officio member under this section shall be made after obtaining
the recommendation of a selection committee consisting of—
(a) Cabinet Secretary—Chairperson;
(b) Secretary to the Government of India to be nominated by the Central Government—Member;
(c) Chairperson of the Insolvency and Bankruptcy Board of India (in case of selection of members of the Board)—Member;
(d) three experts of repute from the field of finance, law, management, insolvency and related subjects, to be nominated by the Central Government—Members.

All the members of the board including the chairperson should be persons of ability, integrity, and standing who have the capacity to deal with all the problems which relate to bankruptcy or insolvency. And should also have special knowledge and experience in law, finance, economics, accountancy, or administration.

TENURE- The term of office for the Chairperson and other members (other than the ex-officio members) is five years or until they attain the age of sixty-five (65), whichever is earlier. They are also eligible for reappointment .

POWERS AND FUNCTIONS -
The powers and functions of the Board under Section 196(1) of the Insolvency and Bankruptcy Code include:
1. Registration and Regulation:- Register insolvency professional agencies, insolvency professionals, and information utilities.
Renew, withdraw, suspend, or cancel registrations as required.
Specify the minimum eligibility requirements for registration of these entities.
2. Development and Regulation: Promote the development and regulate the working and practices of insolvency professionals and agencies.
Ensure standardization and best practices in the insolvency ecosystem.
3. Fees and Funding: Levy fees and other charges for registration and renewal of insolvency professionals and agencies.
Ensure financial sustainability of regulatory functions.
4. Standards and Guidelines: Specify standards for the functioning of insolvency agencies, professionals, and information utilities.
Lay down a minimum curriculum for examinations for insolvency professionals.
5. Inspections and Compliance: Conduct inspections and investigations into insolvency agencies, professionals, and utilities.
Pass necessary orders for compliance with the Code and regulations.
6. Performance Monitoring: Monitor the performance of insolvency professional agencies and utilities.
Issue necessary directions to ensure compliance.
7. Information and Records: Call for records and information from agencies and professionals.
Maintain a database of insolvency cases and provide access to stakeholders.
8. Research and Publications: Conduct research, audits, and periodic studies on insolvency frameworks.
Publish relevant information, data, and research studies.
9. Governance and Transparency: Promote transparency and best practices in insolvency governance.
Maintain online repositories and websites for accessible information.
10. Inter-Governmental Cooperation: Enter into agreements with statutory authorities for better coordination.
Facilitate cross-border insolvency matters.
11. Issuance of Guidelines and Regulations: Issue guidelines for professional conduct and disciplinary actions.
Establish mechanisms for grievance redressal.
Specify public consultation processes before finalizing regulations.
12. Time-Bound Processes: Establish mechanisms for time-bound disposal of corporate debtor assets.
13. Miscellaneous Functions: Perform other functions as prescribed by the Code

Under Section 196(2), -the Board is empowered to make model bye-laws for insolvency professional agencies, which may provide for:

 Minimum Standards of Competence — Setting professional competence standards for members of insolvency professional agencies.

 Professional and Ethical Conduct — Defining ethical and professional behavior expectations for members.

 Non-Discriminatory Enrollment — Ensuring fair criteria for membership without discrimination based on religion, caste, gender, or place of birth.

 Membership Granting Procedures — Laying down the process for granting membership.

 Internal Governance — Establishing a governing board for internal management of insolvency professional agencies.

 Information Submission Requirements — Defining the format and timeline for members to submit required information.

 Service Provisions — Specifying classes of persons to whom services will be provided at concessional rates or free of charge.

 Penalties — Stating the grounds and procedures for imposing penalties on members.

 Grievance Redressal — Establishing fair mechanisms for addressing grievances against members.

Under Section 196(3), the Board has the same powers as a civil court under the Code of Civil Procedure, 1908, in the following matters:

Discovery and Production of Documents — Requiring books of accounts and other documents to be presented as specified.
Summoning and Enforcing Attendance — Calling individuals for examination under oath.
Inspection of Records — Examining any books, registers, or documents at any place.
Issuing Commissions — Authorizing commissions for witness examination or document review.

These provisions empower the Board to regulate insolvency professionals, enforce
standards, and ensure compliance with insolvency laws effectively.