New Delhi, Dec 11 (KNN) The Insolvency and Bankruptcy Board of India (IBBI) has recently notified the IBBI (Grievance and Complaint Handling Procedure) Regulations, 2017.The initiative may allay the fear of the Micro, Small and Medium Enterprises (MSMEs) that a partisan service provider may go against the entrepreneur, particularly regarding selling of the assets as a going concern or otherwise.

However, towards transparency, it would be ideal if the grievance could be filed online and the details including decision taken by IBBI be available in public domain.

There have been cases in the past where the assets of a defaulting MSME were sold for a song under court order and the poor entrepreneur was not allowed to quote.

V K Agarwal, Past President of the Federation of Indian Micro and Small & Medium Enterprises (FISME) expressed his concern on  the recent ordinance on debarring of ‘wilful defaulters’ in the auction of the assets of the company.

The present definition of ‘wilful defaulter’ is very vague, said Agarwal,  and may be twisted to debar honest entrepreneurs in  recovering  his assets, at least in part.

Under the announced notification Regulation, debtors, creditors, or any other person having an interest in an transaction under the IBBI Code  can  file a grievance or a complaint against a  insolvency professional agency or any other related entity by paying a fee of Rs. 2500.

The Regulations provide for an objective and transparent procedure that does not spare a mischievous service provider, but does not harass an innocent service provider, a release from the Ministry said A stakeholder may file a grievance that shall state the details of how the conduct of the service provider has caused the suffering of the aggrieved; and how the grievance may be redressed under the new notification. (KNN/DB)