IBC Section 217: Complaints against insolvency professional agency or its member or information utility

Section 217 of Insolvency and Bankruptcy Code, 2016: Complaints against insolvency professional agency or its member or information utility

Official Bare Act Text

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

Any person aggrieved by the functioning of an insolvency professional agency or insolvency professional or an information utility may file a complaint to the Board in such form, within such time and in such manner as may be specified.

Legal Commentary & Landmark Judgments: Section 217

Section 217 provides for the filing of formal Complaints to the Board against any Insolvency Professional Agency, Insolvency Professional, or Information Utility.

Locus Standi for Complaints: Any person aggrieved by the functioning of an IPA, insolvency professional, or Information Utility may file a complaint with the Board.
Prescribed Format and Fees: The complaint must be filed in the form and manner and accompanied by such fee as specified by IBBI regulations.
Initial Scrutiny: The Board examines the complaint to determine whether a prima facie case exists warranting an investigation or disciplinary proceedings.

Key Landmark Precedents:

Swiss Ribbons Pvt. Ltd. v. Union of India (2019) 4 SCC 17: The Supreme Court recognized that the complaint mechanism under Section 217 ensures direct citizen and market participant access to the regulator for grievance redressal.
Dilip B. Jiwrajka v. Union of India (2024) 5 SCC 436: Held that the regulatory oversight of IPs is actively enforced through the Section 217 grievance handling mechanism.

Courtroom Practice & Strategic Litigation Guidance:

Complainants must support Section 217 complaints with clear documentary evidence (such as emails, minutes, or valuation discrepancies); frivolous or unsubstantiated complaints face dismissal with forfeiture of fees.