2.11.13:Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017

13. Disposal of Show-cause notice.

(1) The Disciplinary Committee, after providing an opportunity of being heard to the noticee, shall dispose of the show-cause notice by a reasoned order.

(2)The Disciplinary Committee shall endeavour to dispose of the show-cause notice within a period ofSubstituted vide Insolvency and Bankruptcy Board of India (Inspection and Investigation) (Amendment) Regulations, 2022. dated 14.06.2022. To view the Notification, Click here sixty days from the due date for receipt of reply to the show-cause noticeSubstituted vide Insolvency and Bankruptcy Board of India (Inspection and Investigation) (Amendment) Regulations, 2024 dated 13.08.2024. To view the Notification, Click here  thirty-five days of the date of the issuance of the show-cause notice. The Disciplinary Committee shall dispose of the show-cause notice within a period of 180 days of the issue of the show-cause notice.

(3) The order under sub-regulation (1) may provide for-

(a) closure of show-cause notice without any direction;

(b) warning;

(ba) suspension or cancellation of authorisation for assignment of an insolvency professional; Inserted vide Insolvency and Bankruptcy Board of India (Inspection and Investigation) (Amendment) Regulations, 2022. dated 14.06.2022. To view the Notification, Click here 

(c) any of the actions or directionsInserted vide Insolvency and Bankruptcy Board of India (Inspection and Investigation) (Amendment) Regulations, 2026 dated 01.06.2026. To view the notification, Click Here under sub-sections (2), (3) and (4) of section 220;

(d) a reference to the Board to take any action under sub-section (5) of section 220 or sub-section (2) of section 236; or

(e) any other action or direction as may be considered appropriate.

(4) The order under sub-regulation (1) shall not become effective until thirty days have elapsed from the date of issue of the order, unless the Disciplinary Committee states otherwise in the order along with the reasons for the same.

(5)The order passed under sub-regulation (1) shall be served upon the service provider in an electronic form and be published on the website of the Board: Substituted vide Insolvency and Bankruptcy Board of India (Inspection and Investigation) (Amendment) Regulations, 2022. dated 14.06.2022. To view the Notification, Click here 

Provided Substituted vide Insolvency and Bankruptcy Board of India (Inspection and Investigation) (Amendment) Regulations, 2022. dated 14.06.2022. To view the Notification, Click here  that where the service provider is an insolvency professional, a copy of the order shall be sent to the insolvency professional agency of which he is a professional member.

The order under sub-regulation (1) shall be issued to the noticee immediately, and be published on the website of the Board.

(6) The Disciplinary Committee shall in the order passed under sub-regulation (1) require the service provider-

(a) to discharge pending obligations, if any;

(b) to continue its functions till such time as may be directed, only to enable stakeholders to shift to another service provider; and

(c) to comply with any other directions.Substituted vide Insolvency and Bankruptcy Board of India (Inspection and Investigation) (Amendment) Regulations, 2022. dated 14.06.2022. To view the Notification, Click here. 

If the order under sub-regulation (1) suspends or cancels the registration of a service provider, the Disciplinary Committee may, if it considers fit, require the service provider to-

(a) discharge pending obligations, if any;

(b) continue its functions till such time as may be directed, only to enable clients to shift to another service provider; and

(c) comply with any other directions.