Section 217 IBC: Complaints Against Insolvency Professionals, Agencies and Information Utilities
Section 217 establishes the right of an aggrieved person to complain to the Insolvency and Bankruptcy Board of India (IBBI) about the functioning of an insolvency professional agency, an insolvency professional or an information utility. It is an important regulatory accountability provision under the Insolvency and Bankruptcy Code, 2016.
Section 217: Statutory provision
217. Complaints against insolvency professional agency or its member or information utility. 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.
This is the provision appearing in the uploaded page. For the operative law, read it together with the applicable IBBI regulations, amendments and regulatory directions.
Meaning and scope of Section 217
Who can file a complaint?
Any person aggrieved by the functioning of an entity covered by Section 217 may approach the Board. The complainant should identify the conduct complained of, explain how it affects them and supply supporting material. Whether a submission is maintainable depends on the applicable law and regulations.
Against whom can a complaint be made?
- Insolvency professional agency (IPA): an agency registered with IBBI that enrols and regulates its professional members under the Code.
- Insolvency professional (IP): an individual enrolled with an IPA and registered with IBBI to perform functions under the Code, including appointments as an interim resolution professional, resolution professional or liquidator, as applicable.
- Information utility (IU): an entity registered under the Code to receive, authenticate, store and provide access to financial information in the prescribed manner.
The phrase the Board means the Insolvency and Bankruptcy Board of India, the regulator established under Section 188 of the Code. The definition provisions in Section 3 and the registration provisions elsewhere in the Code provide further context.
What types of concerns may be raised?
Depending on the facts, a complaint may concern alleged non-compliance with the Code or regulations, professional conduct, conflicts of interest, failures in prescribed duties, or improper handling of information. A disagreement with a commercial decision does not by itself establish regulatory misconduct; the Board assesses the legal and factual basis of the allegations.
How to file a complaint with IBBI
- Identify the regulated person or entity. Record the name, registration details (where available), relevant insolvency process and dates.
- Describe the grievance or alleged violation. Set out the facts in chronological order and refer to relevant duties or provisions where possible.
- Gather evidence. Include relevant communications, orders, public records and other documents that support the allegations.
- Use the prescribed channel. Consult the official IBBI website and the applicable IBBI legal framework for current complaint/grievance regulations, prescribed form, filing mechanism, fees if applicable and time requirements.
- Retain acknowledgment and reference details. Respond to requests for additional information from the regulator and track communications through official channels.
What happens after a complaint?
The Board may examine the submission under the relevant regulatory framework, seek further information and determine whether further regulatory steps are warranted. A complaint does not automatically result in a disciplinary penalty. Investigation, inspection and disciplinary proceedings, where legally justified, are governed by separate provisions and applicable regulations.
Under Section 218, the Board may order an inspection or investigation where the statutory conditions are satisfied. Section 219 concerns the powers of the investigating authority. Section 220 deals with the constitution of a disciplinary committee and its powers to make orders in accordance with the Code. These provisions should not be treated as guaranteeing any particular outcome from an individual complaint.
Does a Section 217 complaint replace an appeal?
No. A regulatory complaint is distinct from a statutory appeal or an application before the appropriate adjudicating authority. A person challenging an insolvency-related judicial order must examine the separate appellate provisions and limitation periods that apply to that order. Filing a complaint should not be assumed to suspend an appeal deadline.
Related sections and official legal resources
- Section 196: Powers and functions of IBBI, including regulatory oversight.
- Section 217: Complaints against an insolvency professional agency, insolvency professional or information utility.
- Sections 218-220: Inspection, investigation and disciplinary action.
- Section 221: Appeal against certain orders of the Board, subject to the statutory requirements.
Read the complete Insolvency and Bankruptcy Code, 2016 on this website. For authoritative texts and current amendments, consult the India Code portal, IBBI legal framework and IBBI official website.
Frequently asked questions
Who regulates insolvency professionals in India?
The Insolvency and Bankruptcy Board of India registers and regulates insolvency professionals under the Code, alongside the functions of registered insolvency professional agencies.
Can a complaint be filed against an information utility?
Yes. Section 217 expressly covers an aggrieved person complaining about the functioning of an information utility.
Does every complaint lead to disciplinary action?
No. Regulatory action depends on the facts, applicable procedures and whether grounds for action are established.
Legal information updated: 23 October 2026. This article is general information and does not replace professional advice or the latest statutory and regulatory text.