TMI Blog2018 (9) TMI 1739X X X X Extracts X X X X X X X X Extracts X X X X ..... the Code of Conduct in the First Schedule to the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016. ORDER - Mr. Goel has misled the stakeholders, the Board and the DC. His conduct is in violation of section 208 read with regulations 7(2)(a) and 7(2)(b) of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 and clauses 1, 2, 10, 12, 14 and 24 of the Code of Conduct in the First Schedule for Insolvency Professionals under the said Regulations. Disciplinary Committee, in exercise of the powers conferred under section 220 (2) of the Code read with sub-regulations (7) and (8) of regulation 11 of the IBBI (Insolvency Professionals) Regulations, 2016, hereby, issues the following directions: (a) Mr. Goel shall not take up any new assignment till “IBBI Insolvency Practitioners LLP” is removed from the Company / LLP Master Data of the Ministry of Corporate Affairs; and (b) Mr. Goel’s registration as an insolvency professional shall be suspended for three months from the date of issue of this order. This direction of suspension shall come into force on expiry of 30 days from the date of its issue. - No. IB ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r from the Board, he had made an application to the Registrar of Companies (RoC) on 9th February, 2018 to change the name of the said LLP to XPRT Insolvency Practitioners LLP . 1.2.7 After about a month, the Board verified the Company Master Data on the website of the Ministry of Corporate Affairs whether the expression IBBI has been dropped from the name IBBI Insolvency Practitioners LLP or not. Since it was not done, the Board, vide e-mail dated 9th March, 2018, again sought reasons for delay from Mr. Goel. 1.2.8 Mr. Goel, vide mail dated 10th March, 2018 informed the Board that the RoC has raised objections in the form for change of name and he has filed a fresh form for the same on 7th March, 2018. 1.2.9 Mr. Goel, vide a mail dated 15th March, 2018, forwarded a communication dated 15th March, 2018 received by him from the Registrar of Companies, objecting to the form submitted by him for rectification of name. 1.2.10 On consideration of the responses of Mr. Goel on the clarifications sought by the Board and record of the Company Master Data on the Ministry of Corporate Affairs website and other material available on record, the Board formed a prima facie opin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not gained any material benefit out of the name. (c) An application has been made to the Registrar of Companies (RoC) for a change of name of the LLP. (d) As objections were raised by the RoC on 9th February, 2018 with regard to the form for change of the name of the LLP, Mr. Goel resubmitted the form on 7th March, 2018. (e) That the name of IBBI Insolvency Practitioners LLP has been proposed to be changed to XPRT Insolvency Practitioners LLP . 4. Analysis and Findings 4.1 The DC has carefully considered the SCN, written and oral submissions of Mr. Goel and other material available on record and finds as follows: (a ) It is an undisputed fact that the Insolvency and Bankruptcy Board of India is a statutory body. For any purpose under the Code, by custom and practice, the abbreviation IBBI stands for the Insolvency and Bankruptcy Board of India. For all practical purposes IBBI denotes the Board. The market has been using the terms IBBI , the Board, and the Insolvency and Bankruptcy Board of India interchangeably. The website of the Board is www.ibbi.gov.in. ( b) IBBI Insolvency Practitioners LLP is not promoted by the Board. There is no rela ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd submitted relevant papers for the same to the RoC. ( i) DC notes that even on the date of issue of this Order, the Company Master Data on the website of the Ministry of Corporate Affairs carries the name IBBI Insolvency Practitioners LLP . ( j) The DC notes that clause 2 of the Code of Conduct for Insolvency Professionals under the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 casts an obligation on an insolvency professional not to misrepresent any facts or situations and to refrain from being involved in any action that would bring disrepute to the profession. It is difficult to fathom that a qualified Chartered Accountant and a registered insolvency professional did not find it improper to use the abbreviation IBBI in the name of the LLP. ( k)By virtue of section 188(2) of the Code, the Board is a body corporate having a perpetual succession and a common seal. Section 15(2)(b) of the Limited Liability Partnership Act, 2008 explicitly states that no Limited Liability Partnership shall be registered by a name which is a body corporate. Mr. Goel circumvented the said provision by using the abbreviation IBBI in inc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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