IBC Section 213: Core services, etc

Section 213 of Insolvency and Bankruptcy Code, 2016: Core services, etc

Official Bare Act Text

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

An information utility shall provide such services as may be specified including core services to any person if such person complies with the terms and conditions as may be specified by regulations.

Legal Commentary & Landmark Judgments: Section 213

Section 213 specifies the Core Services provided by Information Utilities, including accepting, authenticating, and storing electronic records of financial information.

Core Service Functions: Comprises accepting electronic submission of financial information, recording and storing data safely, verifying and authenticating submitted records, and providing secure access.
Universal User Access: Allows registered users, creditors, debtors, and insolvency professionals to query and retrieve verified financial ledgers and security filings.
Prohibition Against Commercial Exploitation: Information Utilities cannot commercialize or exploit sensitive user financial data for purposes outside statutory services.

Key Landmark Precedents:

Swiss Ribbons Pvt. Ltd. v. Union of India (2019) 4 SCC 17: The Supreme Court examined Section 213 in detail, holding that core services provided by IUs serve the critical public function of certifying financial health and defaults.
Innoventive Industries Ltd. v. ICICI Bank (2018) 1 SCC 407: Affirmed that core service records from registered IUs constitute prime evidence for establishing corporate defaults.

Courtroom Practice & Strategic Litigation Guidance:

Litigants relying on NeSL records in Section 7 or Section 9 petitions must verify that the IU record displays the 'Authenticated' or 'Deemed Authenticated' digital stamp to secure instant admission.