Section 37: Powers of Liquidator to Access Information
Section 37 of the Insolvency and Bankruptcy Code, 2016 gives a liquidator overriding statutory power to access specified information systems for admitting and proving claims and identifying assets of the corporate debtor that form part of the liquidation estate.
Meaning and purpose of Section 37
The provision enables the liquidator to obtain information required to identify the corporate debtor's assets and liabilities, verify claims and administer the liquidation process. The opening words, "Notwithstanding anything contained in any other law for the time being in force", give the statutory access power overriding effect where another law would otherwise conflict with the access contemplated by Section 37, subject to the scope of the provision and applicable regulatory requirements.
Section 37 - Statutory provision
(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.
(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.
(3) The liquidator shall provide information referred to in sub-section (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.
Information sources available to the liquidator
Section 37(1) identifies a broad range of regulated and official information sources. These include an information utility, credit information systems, Central, State and Local Government agencies and registration authorities, systems recording financial and non-financial liabilities, systems recording securities and assets given as security, databases maintained by the Insolvency and Bankruptcy Board of India and any additional source specified by the Board.
Information utility
An "information utility" is a person registered with the Board as an information utility under Section 210 of the Code. Information utilities receive, authenticate, store and provide access to financial information in accordance with the Code and the regulations governing information utilities.
Identification of liquidation estate assets
The information-access power under Section 37 is expressly connected with identification of liquidation estate assets. The composition of the liquidation estate is governed principally by Section 36 of the IBC. The liquidator may therefore use the sources listed in Section 37 to help identify ownership, security interests, liabilities and other relevant information concerning the corporate debtor.
Rights of creditors to financial information
Section 37(2) permits creditors to require the liquidator to provide financial information relating to the corporate debtor in the manner specified under the applicable framework. Under Section 37(3), where such information is requested, the liquidator must provide it within seven days from the date of the request or give reasons for not providing it.
Relationship with the liquidator's other powers and duties
Section 37 operates alongside Section 35, which sets out the liquidator's principal powers and duties, and Section 38, which governs consolidation of claims. The information obtained under Section 37 can assist the liquidator in verifying the financial position of the corporate debtor, identifying estate assets and dealing with creditor claims.
Official legal resources
For the current Act, amendments, notifications, circulars and regulations, refer to the IBBI Acts page, the updated IBBI Liquidation Process Regulations and the IBBI Circulars page.