9911796707
TMI Blog2021 (1) TMI 756X X X X Extracts X X X X X X X X Extracts X X X X ..... fessionals (IPA) and an IP registered with the Insolvency and Bankruptcy Board of India (IBBI) with Registration No. IBBI/IPA-002/IP-N00082/2017-2018/10223. 1.1 The IBBI had issued on 28th August, 2020, the SCN to Mr. S Rajagopal for accepting the assignment as the Interim Resolution Professional (IRP) in the Corporate Insolvency Resolution Process (CIRP) of Coastal Energy Private Limited after 31st December 2019 without holding a valid Authorisation for Assignment (AFA). 1.2 Mr. Rajagopal submitted reply to the SCN dated 4th September, 2020. The IBBI referred the SCN, response of Mr. Rajagopal to the SCN and other material available on record to the Disciplinary Committee (DC) for disposal of the SCN in accordance with the Code and Regul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ful, diligent, strictly act as per law and similar action should not be repeated. Analysis and Findings 4. The DC after taking into consideration the SCN, the reply to SCN, the oral and written submission of Mr. Rajagopal and also the provisions of the Code, rules and the regulations made thereunder finds as follows. 4.1 The DC notes that the provisions of the Code and regulations are spelt out in a plain and unambiguous language. Regulation 7A of IP regulations requires for any IP to have AFA before undertaking any assignment after 31st December 2019. Regulation 7A reads as follows: "7A. An insolvency professional shall not accept or undertake an assignment after 31st December, 2019 unless he holds a valid authorisation for assignment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the bye-laws of the insolvency professional agency of which he is a member. Section 208(2) provides as follows: "208. Functions and obligations of insolvency professionals.- (2) Every insolvency professional shall abide by the following code of conduct: - (a) to take reasonable care and diligence while performing his duties; (b) to comply with all requirements and terms and conditions specified in the byelaws of the insolvency professional agency of which he is a member; and (e) to perform his functions in such manner and subject to such conditions as may be specified." 4.5 The DC further notes that the certificate of registration granted to an IP is subject to the condition that he should follow at all times the provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rajagopal had provided his consent to accept the assignment in Form-2 to Indian Overseas Bank on 1-3-2019 prior to the amendment made to IP regulation for CIRP of Coastal Energy Private Limited, before 31st December, 2019. However, it is observed that the date of commencement of the CIRP is 6-1-2020 and the Regulation 7A of IP regulations clearly and unambiguously states that an insolvency professional shall not accept or undertake an assignment after 31st December, 2019 unless he holds a valid AFA. In consequence, he has contravened code of conduct under section 208(2)(a) and(e) of the Code and regulations 7(2)(a) and (h), 7A of the IP Regulations read with clauses 1, 2, 11, 12 and 14 of the Code of Conduct contained in the First Schedule ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
