TMI Blog2021 (3) TMI 248X X X X Extracts X X X X X X X X Extracts X X X X ..... is that he should have a valid AFA which is issued by the IPA with which he is enrolled. In other words, without AFA, an IP is not eligible to undertake assignments or conduct various processes thereof. Regulation 7A was inserted in the IP Regulations vide notification dated 23rd July, 2019, much before the cut-off date, i.e., 31st December, 2019. Adequate time was given to the professionals to obtain AFA from respective IPAs. The Bye-Laws of ICSI Institute of Insolvency Professionals defines in para 4(1)(aa) the expression Authorization for Assignment as an authorization to undertake an assignment, issued by an insolvency professional agency to an insolvency professional, who is its professional member, in accordance with its bye-law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , which appears to be incorrect - The Disciplinary Committee of IPA vide aforementioned order issued warning to Mr. Kapur to be extremely careful and diligent and that he should act strictly as per law and similar action should not be repeated. IPA further directed that Mr. Kapur shall not accept any new assignment without obtaining Authorisation for Assignment. SCN disposed off. - NO. IBBI/DC/50/2020 - - - Dated:- 4-12-2020 - Dr. Mukulita Vijayawargiya, Whole Time Member ORDER In the matter of Mr. Satinder Kapur, Insolvency Professional (IP) under Regulation 11 of the Insolvency and Bankruptcy Board of India (Insolvency Professional) Regulations, 2016. This Order disposes of the Show-Cause Notice (SCN) No. IBBI/IP/MON/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion process of Buffalogrid Project (P.) Ltd. after 31st December, 2019 for which public announcement was made on 7th February, 2020 without holding a valid AFA from the IPA; Written and oral submissions by Mr. Satinder Kapur 3. Mr. Kapur's submissions made in his written reply and during the course of personal hearing are summarized as follows: (i) The requirement to obtain AFA is not applicable to him in the instant case as the acceptance for the present assignment to act as a liquidator was given by him on 28th August, 2019, i.e., before 31st December, 2019. Accordingly, he was under bona fide belief that AFA was not required and provisions of Regulation 7A of the said IP Regulations 2016 was not applicable at the time when a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o an assignment which an insolvency professional is undertaking as on- (a) 31st December, 2019; or (b) the date of expiry of his authorization for assignment. 4.2. Thus, it is clear from the said Regulation that one of the essential conditions for undertaking any assignment by an IP is that he should have a valid AFA which is issued by the IPA with which he is enrolled. In other words, without AFA, an IP is not eligible to undertake assignments or conduct various processes thereof. Regulation 7A was inserted in the IP Regulations vide notification dated 23rd July, 2019, much before the cut-off date, i.e., 31st December, 2019. Adequate time was given to the professionals to obtain AFA from respective IPAs. 4.3 IPAs can issue aut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd subject to such conditions as may be specified. 4.6 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 of the Code and Regulations and the bye-laws of Insolvency Professional Agency of which the IP is a member and also 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it has been mentioned that the Mr. Kapur accepted the assignment on 4th September, 2019. However, on examination of the documents placed on record, the DC finds that the date of acceptance is 28th August, 2019 while the order of Disciplinary Committee of IPA mentions the date of acceptance as 4th September, 2019, which appears to be incorrect. 4.10 The Disciplinary Committee of IPA vide aforementioned order issued warning to Mr. Kapur to be extremely careful and diligent and that he should act strictly as per law and similar action should not be repeated. IPA further directed that Mr. Kapur shall not accept any new assignment without obtaining Authorisation for Assignment. ORDER 5. In view of the fact that ICSI Institute of Inso ..... X X X X Extracts X X X X X X X X Extracts X X X X
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