The Insolvency and Bankruptcy Board of India ( IBBI ) has extended the SCN ( Show Cause Notice ) disposal from 35 days to 60 days issued under IBBI (Inspection and Investigation) Regulations.
For this purpose, it has amended Regulation 13. According to the pre-amended regulation, the disciplinary committee has to dispose of the SCN with a reasoned order after providing an opportunity of being heard within 35 days. However, this new amendment dated 13th August 2024 has extended this time frame to 60 days.
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These regulations will be known as the Insolvency and Bankruptcy Board of India (Inspection and Investigation) (Amendment) Regulations, 2024. They will take effect from the date of their publication in the Official Gazette.
The IBBI (Inspection and Investigation) (Amendment) Regulations were initially introduced in 2017, establishing a 180-days timeframe for the disposal of SCN. In 2022, the regulations were amended to adjust this timeframe and reduced it to 35 days.
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This latest amendment increased the disposal period to 60 days, allowing sufficient time for the committee to issue a reasoned order while ensuring compliance with the principles of natural justice by providing an opportunity for a hearing.
Pre-amended Regulation 13
“(1) The Disciplinary Committee, after providing an opportunity of being heard to the noticee, shall dispose of the show-cause notice by a reasoned order.
(2)The Disciplinary Committee shall endeavour to dispose of the show-cause notice within a period of thirty-five days of the date of the issuance of the show-cause notice.”
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Post- Amended Regulation 13
“(1) The Disciplinary Committee, after providing an opportunity of being heard to the noticee, shall dispose of the show-cause notice by a reasoned order.
(2)The Disciplinary Committee shall endeavour to dispose of the show-cause notice within a period of thirty-five days Sixty days of the date of the issuance of the show-cause notice.”
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