IBC Section 37: Powers of liquidator to access information

Section 37 of Insolvency and Bankruptcy Code, 2016: Powers of liquidator to access information

Official Bare Act Text

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

(1) Notwithstanding anything contained in any other law for the time being in force, the liquidator shall have the power to access any information systems for the purpose of admission and proof of claims and identification of the liquidation estate assets relating to the corporate debtor from the following sources, namely:-

(a) an information utility;

(b) credit information systems regulated under any law for the time being in force;

(c) any agency of the Central, State or Local Government including any registration authorities;

(d) information systems for financial and non-financial liabilities regulated under any law for the time being in force;

(e) information systems for securities and assets posted as security interest regulated under any law for the time being in force;

(f) any database maintained by the Board; and

(g) any other source as may be specified by the Board.

(2) The creditors may require the liquidator to provide them any financial information relating to the corporate debtor in such manner as may be specified.

(3) The liquidator shall provide information referred to in sub-section (2) to such creditors who have requested for such information within a period of seven days from the date of such request or provide reasons for not providing such information.

Legal Commentary & Landmark Judgments: Section 37

Section 37 empowers the liquidator to access information and query databases of government authorities, credit information bureaus, and corporate registries to trace the assets and financial transactions of the corporate debtor.

Expansive Information Access Powers: The liquidator shall have the power to access any information systems for the purpose of admitting and allocating claims of creditors and identifying assets.
Specific Information Systems Listed: Includes: Information utilities, credit information bureaus, financial institutions maintaining records of the corporate debtor, central and state government registries, and tax authorities.
Duty of Public Authorities: Government agencies, GST authorities, and land revenue registries are legally bound to furnish records requested by the liquidator.

Key Landmark Precedents:

Swiss Ribbons Pvt. Ltd. v. Union of India (2019) 4 SCC 17: The Supreme Court highlighted that statutory powers under Section 37 ensure that the liquidator can uncover hidden corporate assets and trace fraudulent transfers across multiple registers.
Anuj Jain v. Axis Bank Ltd. (2020) 8 SCC 401: Affirmed that information gathered under Section 37 forms the foundational evidentiary record for prosecuting avoidance and fraudulent preference transactions.

Courtroom Practice & Strategic Litigation Guidance:

Use Section 37 requisitions to obtain full land registry extract records, MCA charges registers, and GST return filings. If a bank or revenue officer refuses disclosure, move an application before the NCLT for coercive compliance under Section 37 r/w Section 19.