TMI Blog2018 (4) TMI 1439X X X X Extracts X X X X X X X X Extracts X X X X ..... nterim Order ( under sub-regulation (4) of regulation 5 of the Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017 in the matter of Mr. Mukesh Mohan, Insolvency Professional ) The Disciplinary Committee of the Insolvency and Bankruptcy Board of India had issued an ex-parte interim order dated 8th March, 2018 against Mr. Mukesh Mohan, Insolvency Professional [Regn. No. IBBI/IPA-001/IP-P00018/2016-2017/10042] pending completion of inspection. A copy of ex-parte interim order is annexed to this order. 2. The ex-parte interim order provided an opportunity to Mr. Mohan to submit a written submission and seek an opportunity of personal hearing. Mr. Mohan, vide his letter dated 23rd March, 2018, has submitted a written submission and availed the opportunity of personal hearing on 12th April, 2018. At the hearing, he reiterated what he has stated in the written submission. 3. Mr. Mohan has submitted para wise response to the findings in the ex-parte interim order. I, however, do not find anything new in his submissions that has not been dealt in the ex-parte interim order or that disproves a finding in the ex-parte interim order. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction and Investigation) Regulations, 2017, hereby confirm the directions contained in the ex-parte interim order dated 8th March, 2018. 7. A copy of this order shall be forwarded to Mr. Mukesh Mohan and to Indian Institute of Insolvency Professional of ICAI where he is enrolled as its professional member. 8. A copy of this order shall be forwarded to the Registrar of the NCLT, Principal Bench, New Delhi for information. - Sd- Date: 18.04.2018 ( Dr. Mukulita Vijayawargiya) Place: New Delhi Disciplinary Committee and Whole Time Member Annexure : Ex- parte Interim Order dated 8th March, 2018 (page 3-12). ANNEXURE INSOLVENCY AND BANKRUPTCY BOARD OF INDIA DATED: 08th March, 2018 Order under sub-regulation (4) of regulation 5 of the Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017 The Insolvency and Bankruptcy Board of India (hereafter, Board) has referred the Interim Inspection Report (hereafter, IIR) dated 16.02.2017 to the Disciplinary Committee under sub-regulation ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - 2. You are, therefore, advised to withdraw the aforesaid advertisement immediately and issue a fresh advertisement after addressing the above deficiencies in all newspapers where the advertisement under reference has been published. The cost of such withdrawal and fresh advertisement shall not form part of the insolvency resolution cost. 3. You are advised to file a confirmation that actions as called for in Para 2 above have been duly complied with. (vi) Mr. Mohan, vide his letter dated January 01, 2018 and annexures thereto, inter alia, submitted as under: (a) One of the deficiencies (last date for submission of the resolution plan) was a mistake, but it was a mistake by oversight by all members of Committee of Creditors including myself. The draft advertisement was discussed and approved by the Committee of Creditors in its meeting held on December 05,2017. (b) In his meeting with Forensic Auditors and Punjab National Bank (PNB) on 21st December, 2017, the draft advertisement for EoI was approved and signed by the Mr. D. Vasudevan, Deputy General Manager of the PNB, one of the members of the CoC after certain modifications as per the observations of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. On 11.01.2018 seeking, inter alia, directions of the Court, whether resolution professional to issue corrigendum against the direction of the Board or to withdraw the EOI dated 26.12.2017 and to issue fresh EOI in contravention to the direction of CoC . (xii) Mr. Mohan served a copy of the aforesaid application on the Board on the date of its listing on 15.01.2018 before the AA. (xiii) The IA, vide e-mail dated 07.02.2018, requested Mr. Mohan to provide certain documents pertaining to the processes conducted by him as an IP by 12.02.2018. (xiv) The IA did not receive any of the documents as sought at (xv) above till the submission of the first monthly report, which was due on 15th February, 2018. The IA communicated its displeasure to Mr. Mohan vide e-mail dated 16.02 2018. (xv) On failing to get cooperation from Mr. Mohan, the IA submitted the IIR on 16.02.2018 to the Board on the basis of material available on record, wherein it is stated that IA is of the considered opinion that the conduct of Mr. Mohan in the ongoing cases is violative of provisions of the Code, rules and regulations thereunder and in the interest of all the stakeholders, it is appropriate that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 017 (not a meeting of CoC), the EoI was actually finalized. (i) The minutes of the meeting of CoC on 05.01.2018 is extracted here: It was informed to the Committee of Creditors that in compliance to the decision of the Committee of Creditor in its meeting held on November 14, 2017 and December 05, 2017, Resolution Professional got published, advertisement of Expression of Interest for Resolution Plan in Economics Times, Hindustan Times, Times of India on all editions on December 26, 2017 as per the draft approved by the Committee of Creditors. Chairman informed to the Committee of Creditor that the draft was again fine-tuned by the Deputy General Manager of Punjab National Bank during the meeting held on December 21, 2017 at the office of the Resolution Professional, 1106-1107, New Delhi House, Barakhamba Road, Connaught Place, New Delhi-110001. (ii) The minutes of the meeting of Mr. Mohan with Forensic Auditor and PNB on 21.12.2017 is extracted here: Resolution Professional requested PNB to vet the Expression of Interest for Resolution Plan for Carnation Auto India Private Limited. After detailed discussion the Expression of Interest was finalised, which i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for EoI dated 26.12.2017 despite direction given to him vide email dated 06.03.2017. Thus, he contravened clause (i) of sub-regulation (2) of regulation 7 of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016. (ii) The Board directed Mr. Mohan vide letter dated 26.12.2017, to issue a fresh advertisement after removing the three deficiencies observed by it in the advertisement for EoI dated 26.12.2017(as referred to in para 2(iv) above). Mr. Mohan did not comply with these directions of the Board issued under section 196(1)(g) of the Code. (iii) While asking for a fresh advertisement, the Board stated vide the aforesaid letter: the cost of such withdrawal and fresh advertisement shall not form part of the insolvency resolution process cost . However, Mr. Mohan stated in his application before the AA that the fresh advertisement would impose burden on the corporate debtor. He made similar mis-presentation to the Board in his letter dated 01.03.2018 Thus, he attempted to mislead the AA and the Board in contravention of clauses 1, 2, 9, 12 and 14 of the Code of Conduct under the first schedule of the Insolvency and Bankruptcy Board of Indi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficate of a CA engaged by such applicant and thereby contravened section 23(1) of the Code and compromised the integrity of the process in contravention of clauses 1 and 14 of the said Code of Conduct. He brought in a requirement not envisaged under the Code adding cost in terms of time and money in contravention of clause 13 of the Code of Conduct. (viii) An insolvency professional is registered by the Board on satisfaction of his talent (qualification and experience) and character (fit and proper). Accordingly, he is entrusted with key responsibilities under the Code. He is engaged as a resolution professional by the CoC. He cannot outsource his responsibilities to a third person. A key responsibility of the insolvency professionals is ascertaining whether a prospective resolution applicant is eligible under the Code to submit a resolution plan. Mr. Mohan, in the instant case, outsourced his responsibility to a third person to certify eligibility of resolution applicants in contravention of sections 23(1) and 30(2)I of the Code. (ix) Mr. Mohan made false statements in his letter dated 01.01.2018 and contravened the provisions of the Code and regulations under section 70 (2) ..... 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