IBC Section 215: Procedure for submission, etc

Section 215 of Insolvency and Bankruptcy Code, 2016: Procedure for submission, etc

Official Bare Act Text

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

(1) Any person who intends to submit financial information to the information utility or access the information from the information utility shall pay such fee and submit information in such form and manner as may be specified by regulations.

(2) A financial creditor shall submit financial information and information relating to assets in relation to which any security interest has been created, in such form and manner as may be specified by regulations.

(3) An operational creditor may submit financial information to the information utility in such form and manner as may be specified.

Legal Commentary & Landmark Judgments: Section 215

Section 215 establishes the statutory procedure and mandatory obligations for financial creditors and other persons to submit financial information and records of debt to an Information Utility.

Mandatory for Financial Creditors: Financial creditors are statutorily required to submit financial information and information relating to assets in relation to which any security interest has been created to an IU.
Submission of Default Information: Upon the occurrence of a default, financial creditors must immediately submit information regarding such default to the Information Utility in prescribed electronic formats.
Discretionary for Operational Creditors: Operational creditors and other persons may optionally submit financial information and debt records to the Information Utility.

Key Landmark Precedents:

Swiss Ribbons Pvt. Ltd. v. Union of India (2019) 4 SCC 17: The Supreme Court observed that mandatory submission of default records by financial creditors under Section 215 ensures real-time national visibility over non-performing assets.
Dena Bank v. C. Shivakumar Reddy (2021) 10 SCC 330: Emphasized that default records registered under Section 215 constitute unassailable documentary evidence under the Code.

Courtroom Practice & Strategic Litigation Guidance:

Banks and financial institutions must automate their core banking systems to push loan drawdowns and defaults directly to NeSL under Section 215; failure to do so delays filing and admission of Section 7 petitions.