IBBI Appellate Authority Clarifies RTI Exemptions on Ongoing Liquidation Investigations and Public Records

The intersection of transparency laws and insolvency proceedings often presents complex legal questions, particularly when stakeholders seek sensitive information regarding ongoing liquidations. The First Appellate Authority of the Insolvency and Bankruptcy Board of India (IBBI) recently delivered a comprehensive order addressing these boundaries. The appellate decision provides critical clarity on the extent to which a public authority is obligated to furnish information under the Right to Information Act, 2005, especially when such disclosures intersect with ongoing disciplinary investigations, publicly available data, and the statutory duties of an insolvency professional.

This article provides an in-depth analysis of the appellate order, exploring the statutory interpretations of key provisions such as Section 2(f) and Section 8(1)(h) of the Right to Information Act, 2005, and examining the judicial precedents relied upon by the Authority to balance transparency with the integrity of regulatory investigations.

Background of the Appeal and Information Sought

The matter stems from an appeal filed by Sharad Atmaram Jejani against the Central Public Information Officer (CPIO) of the IBBI. The appellant submitted his appeal on 11th July 2026, which was formally received by the regulatory body through offline channels on 29th July 2026. The core of the appellant's grievance revolved around the CPIO's refusal to provide specific interpretations and confidential records pertaining to a liquidation process managed by an insolvency professional, Prasad Kamalakar Dharap.

The appellant's Right to Information application was exhaustive, seeking a wide array of documents and regulatory insights. Specifically, the information requested included:

  • Action Taken Reports (ATRs) corresponding to various complaints lodged by the appellant.
  • The professional qualifications and the precise Authorisation for Assignment (AFA) status of the liquidator.
  • Records demonstrating compliance with specific judicial directives, notably the National Company Law Tribunal (NCLT) order dated 14.10.2022 in IA No. 640/2021, which pertained to the liquidator's authority up to 27.03.2021.
  • Documentation regarding the invocation and legal implications of Rule 11 in the context of the liquidation.
  • Detailed files concerning show-cause notices, disciplinary actions, and regulatory oversight mechanisms.
  • Compliance records relating to the statutory liquidation timelines mandated under Section 12 of the Insolvency and Bankruptcy Code, 2016 and Regulation 44(2).
  • Copies of Quarterly Progress Reports, amended filings, deficiency memos issued by the IBBI, and internal file notings.

In its initial response, the CPIO provided the available file notings but declined to furnish certain details, reasoning that the applicant was essentially seeking an "opinion" or interpretation from the Board. The CPIO maintained that generating opinions or drawing inferences falls outside the statutory definition of "information" as enshrined in the Right to Information Act, 2005. Dissatisfied with this stance, the appellant escalated the matter to the First Appellate Authority.