IBC Section 210: Registration of information utility

Section 210 of Insolvency and Bankruptcy Code, 2016: Registration of information utility

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

(1) Every application for registration shall be made to the Board in such form and manner, containing such particulars, and accompanied by such fee, as may be specified by regulations:

Provided that every application received by the Board shall be acknowledged within seven days of its receipt.

(2) On receipt of the application under sub-section (1), the Board may, on being satisfied that the application conforms to all requirements specified under sub-section (1), grant a certificate of registration to the applicant or else, reject, by order, such application.

(3) The Board may issue a certificate of registration to the applicant in such form and manner and subject to such terms and conditions as may be specified.

(4) The Board may renew the certificate of registration from time to time in such manner and on payment of such fee as may be specified by regulations.

(5) The Board may, by order, suspend or cancel the certificate of registration granted to an information utility on any of the following grounds, namely:-

(a) that it has obtained registration by making a false statement or misrepresentation or any other unlawful means;

(b) that it has failed to comply with the requirements of the regulations made by the Board;

(c) that it has contravened any of the provisions of the Act or the rules or the regulations made thereunder;

(d) on any other ground as may be specified by regulations:

Provided that no order shall be made under this sub-section unless the information utility concerned has been given a reasonable opportunity of being heard:

Provided further that no such order shall be passed by any member except whole-time members of the Board.

Legal Commentary & Landmark Judgments: Section 210

Section 210 governs the principles, eligibility criteria, and application procedure for the Registration of an Information Utility by the Board.

Eligibility Criteria: An applicant must be a public company having high net worth, advanced IT infrastructure, multi-layered data security protocols, and robust governance.
Scrutiny and Approval: The Board evaluates technical capability, disaster recovery architecture, cybersecurity compliance, and independent director governance before granting registration.
Validity and Renewal: The certificate of registration is granted for a specified term and is subject to periodic regulatory compliance audits and renewal conditions.

Key Landmark Precedents:

Swiss Ribbons Pvt. Ltd. v. Union of India (2019) 4 SCC 17: The Supreme Court affirmed that high regulatory standards under Section 210 ensure that Information Utilities maintain tamper-proof, world-class data integrity.
Innoventive Industries Ltd. v. ICICI Bank (2018) 1 SCC 407: Emphasized that the technological dependability of Information Utilities is the foundation of rapid summary insolvency admissions.

Courtroom Practice & Strategic Litigation Guidance:

Prospective Information Utilities must obtain ISO 27001 certifications and adhere to strict data-localization guidelines before moving a registration application under Section 210.