Paper Details

The concept of information utilities, which had not before existed in any other nation or region of the world, was first established in the Insolvency and Bankruptcy Code of 2016. It was meant to revolutionise the Indian credit market by spreading accurate and fast information about credit history and failures and release financial creditors from the onerous proof requirements of the old system to begin the insolvency resolution procedure under the Code. Access to accurate financial information on a debtor should be available to all parties involved in the insolvency or bankruptcy proceedings of a debtor. Asymmetry of information, however, was impeding the current procedure. Establishing the debt and default's existence cost valuable time. Equitable talks between debtors and creditors are also hampered by knowledge asymmetry. The IBC mandates the development of a regulated information industry in the form of IUs in order to address these difficulties.In order to solve these challenges, the IBC mandates the creation of a regulated information industry in the form of IUs. The resource that has increased the viability of Code’s purpose is Information Utility (IU).Additionally, it offers accurate and reliable financial data on the relevant Code Participants, assisting the bank or other lenders in deciding how to proceed with credit transactions. Notably, the information utilities' data can be utilised in court as evidence. An alternative perspective asserts that "IU" operates as a barrier to the approval of data regarding the assets, credit transactions, claims, and active contracts. Information utility is a unique concept. Information utility is one of IBC's core principles. By tracing the conceptual evolution of information utilities and the demand for such organisations, this paper investigates the notion, purpose, and obligations of such organisations. It also looks at the projected information utilities market competition and provides some comments on the governance and legal framework.

IBC, Information Utility (IU), CIRP, IP, NCLT, BLRC