Powers of Liquidator to access information [ Section 37 ] - Insolvency Resolution And Liquidation For Corporate Persons - IBC

Powers of Liquidator to access information Information is power in liquidation. Information is required for the purposes of admission and proof of claims and identification of the liquidation estate assets of the corporate debtor. Further, it is required to evaluate whether the corporate debtor has been subject to any avoidance transactions and to understand the correct financial position of the corporate debtor. Liquidators have statutory powers to access information. Under section 19 of the IBC, the IRP/RP has the right to apply to the Adjudicating Authority to direct the personnel of the corporate debtor, its promoters, or any other person associated with the company to comply with their instructions. Section 37 read together with regulation 9 of the IBBI (Liquidation Process) Regulations, 2016 . Access to following Information [ Section 37(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. Liquidator to provide Financial Information [ Section 37(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. Time limit within which the financial information is to be provided to creditor [ Section 37(3) ] The liquidator shall provide information referred to in section 37(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. Regulation 9 of IBBI (Liquidation Process) Regulations, 2016 For the collection of information necessary for the conduct of liquidation, the liquidator can apply to the AA to direct any of the following people to extend cooperation: (a) a person who is or has been an officer, auditor, employee, promoter, or partner of the CD; (b) a person who was the IRP, RP, or former liquidator of the CD; or (c) a person who is in possession of any property of the CD. The liquidator, however, should bear in mind that such an application can be made only after reasonable efforts to obtain the information from the person concerned have failed.