Confidentiality of Information relating to processes under the Insolvency and Bankruptcy Code, 2016

Posted On : March 07, 2018

The Insolvency and Bankruptcy Board of India (IBBI) as the regulator of insolvency professionals has prescribed the importance of maintaining confidentiality of information in relation to the resolution process or liquidation process under the Code. Pursuant to the circular issued by the IBBI on 23rd February 2018, an insolvency professional, while conducting an insolvency resolution or liquidation, is required to maintain confidentiality of information relating to the insolvency resolution process liquidation and/or bankruptcy process.  The circular also higlights the provisions under the Code which require that information about the insolvency resolution process is kept confidential and is not to be disclosed unless required by law. The Circular provides that an insolvency professional, whether acting as an interim resolution professional, a resolution professional or a liquidator, is required to keep the information about the insolvency resolution process confidential and is prohibited from disclosing it to any unauthorized person. This has been done to prevent the potential impact, that the unauthorized access or leakage of information, may have on the resolution process under the Code.