Due to suspected violations of the CIRP norms and the Insolvency and Bankruptcy Code (IBC), the Disciplinary Committee of the Insolvency and Bankruptcy Board of India (IBBI) has suspended the registration of an Insolvency Professional (IP) for one year.
The Board found that violated sections 18(1)(f), 25(1) and 25(2)(a) of the Code, regulation 7(2)(a) and 7(2)(h) read with clause 3, 5 and 14 of the Code of Conduct of IP Regulations.
Mr. Anil Kumar Sharma, the liquidator of the Corporate Debtor (CD), in his application under section 34(3) read with section 19(2) had stated that the Mr. Anand had not taken control and custody of the assets of the CD.
Mr. Anand acknowledged in his response to the original inspection report that the former administration of the CD had been cooperating throughout, thus he had not taken custody of the CD’s assets. The ex-management moved the CD’s assets as a result of their carelessness and laxity in assuming custody and control of them.
The IP claimed that in good faith, he decided not to take certain CD assets, such as computers, laptops, and software in his possession, in order to maintain the CD as a continuing concern as required by section 20 of the Code.
In light of the aforementioned, the DC believes that Mr. Abhishek Anand violated sections 18(1)(f), 25(1), 25(2)(a), 31, 208 of the Code, regulation 7(2)(a), and 7(2)(h) read with clauses 3 and 14 of the Code of Conduct of IP Regulations by failing to take custody and control of the assets of CD and using the money deposited by the resolution applicant without getting the plan approved by AA.
Further the exercise of the powers conferred under section 220(2) of the Code read with regulation 13 of the IBBI (Inspection and Investigation) Regulations, 2017 suspended the registration of IP for a period of one year.
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