Section 217: Complaints Against Insolvency Professional Agency, Insolvency Professional or Information Utility
Section 217 of the Insolvency and Bankruptcy Code, 2016 provides a statutory route for an aggrieved person to file a complaint with the Insolvency and Bankruptcy Board of India concerning the functioning of an insolvency professional agency, an insolvency professional or an information utility.
Text and scope of Section 217
Section 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.
The provision gives an aggrieved person a statutory mechanism to approach the Board. The expression "Board" refers to the Insolvency and Bankruptcy Board of India established under Section 188 of the Code. The detailed procedure is governed by the Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) Regulations, 2017, as amended from time to time.
Who may file a complaint under Section 217?
Section 217 uses the expression "any person aggrieved". The complaint must concern the functioning of an insolvency professional agency, an insolvency professional or an information utility. The applicable IBBI regulations further regulate grievances and complaints against service providers and their associated persons.
Meaning of complaint and grievance
Under the IBBI grievance and complaint regulations, a complaint is a written expression by a stakeholder alleging contravention of the Code, rules, regulations or guidelines made under it, or circulars or directions issued by the Board, by a service provider or its associated persons. A grievance concerns a stakeholder's suffering on account of the conduct of a service provider or its associated persons.
A complaint may therefore involve an alleged regulatory contravention, while the grievance mechanism is directed toward redress of a stakeholder's grievance. The regulations also recognize a complaint-cum-grievance where both elements arise in the same matter.
Current complaint procedure before IBBI
The procedure for filing and dealing with complaints is prescribed by the IBBI (Grievance and Complaint Handling Procedure) Regulations, 2017. The regulations prescribe the form or format, manner, time requirements, processing of complaints and the action that may follow.
The framework was amended in 2026. With effect from the 2026 amendment, the prescribed complaint is to be filed in such format as may be notified by the Board, replacing the earlier reference to Form A. The amendment also omitted Form A from the regulations. A person filing a complaint should therefore use the current format and procedure notified or made available by IBBI rather than relying on an obsolete copy of Form A.
Service provider under the current framework
The 2026 amendment aligned the expression "service provider" in the grievance and complaint regulations with the meaning assigned to that expression in Section 3(31A) of the Insolvency and Bankruptcy Code. Accordingly, the current statutory definition should be checked when determining whether the person or entity complained against falls within the regulated service-provider framework.
Time limit and pending insolvency proceedings
The complaint must satisfy the time requirements under the applicable regulations. The regulations contain special treatment for matters relating to a process under the Code where proceedings are pending before the Adjudicating Authority, Appellate Authority, High Court or Supreme Court. The current regulatory text should be consulted before filing because the computation and permissible period can depend on the status and closure of those proceedings.
What happens after a complaint is filed?
The Board examines complaints in accordance with the regulatory procedure. Depending on the nature and material in the complaint, the matter may be disposed of under the grievance and complaint framework or may lead to further regulatory action under the Code and applicable regulations. Section 217 should therefore be read with the provisions dealing with investigation, show-cause proceedings and disciplinary action, including Section 218, Section 219 and Section 220.
Related provisions of the Insolvency and Bankruptcy Code
Section 216 deals with rights and obligations of persons submitting financial information. Section 217 provides the complaint mechanism, while the following provisions deal with investigation and disciplinary processes. Reading these provisions together gives the statutory context for regulatory oversight of insolvency service providers and information utilities.