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2020 (7) TMI 295 - Board - Insolvency and BankruptcyDisciplinary proceedings against the IP - Contravention of provisions of the Code, Regulations, and directions issued thereunder by IP - CIRP process - IBBI Circular dated 12-6-2018 - HELD THAT:- The RP acts as a negotiator between the debtor and the creditor. He is an officer of the Court who oversees the entire resolution process and manages information thereby ensuring that the stakeholders are appropriately informed. The RP is appointed by the Adjudication Authority and by virtue of the Code, is given the responsibility to effectively manage the CD as a going concern and is entrusted with the fate of the ailing CD during the process of CIRP. This puts the RP in a central position possessing immense powers however, the RP also has the corresponding responsibility to abide by the Code, rules, regulations and guidelines at all times. During the CIRP, IP has to face many hurdles. He holds the information of the CD in trust which should be shared with third parties as permitted by the Code. There may be many outsiders interested in knowing the sensitive information, but RP must refrain from sharing the same unless permitted by the Code. The IP displayed a negligent approach during the conduct of CIRP. The DC, in exercise of the powers conferred under section 220 of the Code read with Regulation 13 (3) of the IBBI (Inspection and Investigation) Regulations, 2017 and sub-regulations (7) and (8) of Regulation 11 of the IBBI (Insolvency Professionals) Regulations, 2016, issues the following directions: The registration of Mr. Ashwini Mehra as an Insolvency Professional, having Registration No. IBBI/IPA-001/IP-P00388/2017-18/10706, shall be suspended for six months - The DC hereby directs Mr. Ashwini Mehra to secure reimbursement of an amount of ₹ 73,87,642/- which was paid to lender"s legal counsel (SAM) and charged to IRPC. The RP shall produce evidence to the Board of deposit of amount of ₹ 73,87,642/- in the account of CD. The DC also directs Mr. Ashwini Mehra to secure reimbursement of an amount of ₹ 50,74,000/- (Rs. Fifty Lakh Seventy-Four Thousand only) which was paid to Kroll for conducting second forensic audit on the directions of the members of CoC and was charged to IRPC. The RP shall produce evidence to the Board of deposit of amount of ₹ 50,74,000/- in the account of CD - This Order shall come into force on expiry of 30 days from the date of its issue.
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