Information Utility: NeSL is to serve as a repository of legal evidence
The Insolvency and Bankruptcy Board of India (IBBI) under the aegis of the Insolvency and
Bankruptcy Code, 2016 has registered National e-Governance Services Ltd (NeSL) as India’s
first Information Utility under Insolvency and Bankruptcy Code, 2016 on September 25, 2017.
The primary role of NeSL is to serve as a repository of legal evidence holding the information
pertaining to any debt/claim, as submitted by the financial or operational creditor and verified and
authenticated by the other parties to the debt. NeSL is an information infrastructure institution
dealing with critical information projects. It is also required to facilitate time bound resolution by
providing verified information to adjudicating authorities under the IBC that does not require further
authentication
According to Section 215 (2) of Insolvency and Bankruptcy Code (IBC), 2016, a financial creditor
shall submit financial information and information relating to assets in relation to which any security
interest has been created, to an information utility (IU) in accordance with Chapter V of the
Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017 in such form and
manner as specified therein.
The formation of NeSL as Information Utilities under the Insolvency and Bankruptcy Code (the Code)
is important step towards effective management of the insolvency resolution process and seen as a
welcoming step to address the problem of stressed assets for investors and lenders. Information
Utilities would act as data repositories of financial information which would receive, authenticate,
maintain and deliver financial information pertaining to a debtor with a view to facilitate the
insolvency resolution process in a time bound manner.
NeSL has shared registration process for registering legal entity as well as homebuyers, corporate Guarantor etc and has provided process at its website at following link:
NeSL- National E-Governance Services Ltd » Individual Using DSC
Creation of an IU is important step towards effective management of the insolvency resolution
process. There is no doubt about the significance of the IUs; however, it may take a while before
they become relevant. Over a period of time the data available with the IUs will grow in size and if
they are able to ensure necessary safeguards then they are bound to be an important pillar in the
overall resolution process.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
