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TMI Blog2021 (1) TMI 755X X X X Extracts X X X X X X X X Extracts X X X X ..... , Maharashtra-431006, who is a Professional Member of the ICSI Institute of Insolvency Professionals (IPA) and an IP registered with the Insolvency and Bankruptcy Board of India (IBBI) with Registration No. IBBI/IPA-002/IP-N00350/2017-2018/11000. 1.1 The IBBI had issued on 28th August, 2020, the SCN to Mr. Arun Rajabhau Joshi for accepting the assignment in the capacity of Insolvency Resolution Professional (IRP) in the matter of the Corporate Insolvency Resolution Process (CIRP) of M/s Govindam Metals and Alloys Private Limited and M/s Rajit Rolling Mills Private Limited after 31st December, 2019 without holding a valid Authorisation for Assignment (AFA) from his IPA. 1.2 Mr. Joshi submitted reply to the SCN dated 29th August, 2020. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted on 8th November, 2019 in Form No. 2 under rule 9 of Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, which is prior to 31st December, 2019. (ii) Due to administrative problem, the application for CIRPs of M/s Govindam Metals and Alloys Private Limited and M/s Rajit Rolling Mills Private Limited were admitted on 17th January, 2020 and 25th February, 2020 respectively, which is after 31st December, 2019. (iii) Prior authorization is applicable only to assignments taken after 31st December, 2019 and same is not applicable in his case. (iv) He has diligently completed both the assignments and submitted various disclosures to his IPA as well as to the IBBI, therefore, he totally denied and disagreed with t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lled. In other words, without AFA, an IP is not eligible to undertake assignments or conduct various processes thereof after 31st December, 2019. Regulation 7A was inserted in the IP Regulations vide notification dated 23rd July, 2019, much before 31st December, 2019. The same was widely publicized in various programmes. Adequate time was given to the professionals to obtain AFA from respective IPAs. This information was made available on the websites of the IBBI as well as the IPAs. 4.3 The bye-laws of ICSI Institute of Insolvency Professionals defines in para 4(1)(aa) the expression "authorisation for assignment" as an authorisation to undertake an assignment, issued by an insolvency professional agency to an insolvency professional, who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... follow the Code of Conduct specified in the First Schedule to the IP Regulations. In this regard, clauses (a) and (h) of regulation 7(2) of the IP Regulations provide as follows: "7. Certificate of registration. (2) The registration shall be subject to the conditions that the insolvency professional shall - (a) at all times abide by the Code, rules, regulations, and guidelines thereunder and the bye-laws of the insolvency professional agency with which he is enrolled; (h) abide by the Code of Conduct specified in the First Schedule to these Regulations;" 4.6 The Code of Conduct specified in the First Schedule of the IP regulations enumerates a list of code of conduct for insolvency professionals including maintaining of integrity a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Code and that Disciplinary Committee of ICSI Institute of Insolvency Professionals has already taken disciplinary action against Mr Joshi with regard to the issue of undertaking assignments without holding valid AFA, the DC, in exercise of the powers conferred under Regulation 11 of the IBBI (Insolvency Professionals) Regulations, 2016, disposes of the SCN without any direction against Mr. Arun Rajabhau Joshi. 5.1 A copy of this order shall be forwarded to the ICSI Institute of Insolvency Professionals where Mr. Arun Rajabhau Joshi is enrolled as a member. 5.2 A copy of this Order shall also be forwarded to the Registrar of the Principal Bench of the National Company Law Tribunal, New Delhi, for information. 6. Accordingly, the show ..... X X X X Extracts X X X X X X X X Extracts X X X X
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