The Insolvency and Bankruptcy Board of India (IBBI) has cancelled the registration of Insolvency Professional (IP) for this habitual behaviour of non-cooperation with the authorities.
Based on the discussion and available evidence, the Disciplinary Committee (DC) found that the IP failed in discharging his duties on multiple counts, consistently contravening provisions of the Code and its regulations. Previous contraventions resulted in a two-year suspension starting from 13.04.2023. His habitual non-cooperation with authorities is evident.
The important misconduct identified by the Disciplinary Committee is the professional’s failure to transfer Corporate Debtor (CD) documents to the new Resolution Professional, as instructed by the National Company Law Tribunal (NCLT), the Adjudicating Authority.
This order addresses allegations of non-cooperation against Mr. Vineet Aggarwal (IP/old RP) concerning two corporate debtors: M/s JSM Devcons India Private Limited (CD-1) and M/s Nu Tek India Limited (CD-2).
The NCLT admitted the application for Corporate Insolvency Resolution Process (CIRP) of CD-1, appointing Mr. Vineet Aggarwal as Interim Resolution Professional (IRP) on 12.04.2019. He later became the Resolution Professional (RP) but was replaced on 06.07.2023 by Ms. Chhaya Gupta (new RP).
Similarly, for CD-2, the Delhi branch admitted the CIRP application on 23.08.2019, appointing Mr. Aggarwal as RP, confirmed by the AA on 01.10.2019. After the liquidation order on 22.06.2020, Mr. Aggarwal was appointed as the liquidator. This order concludes both Show Cause Notices (SCNs) against him.
The alleged contraventions against him are Non-cooperation with IA, Delay in conducting first meeting of Committee of Creditors, Shorter period of notice for conducting the meeting of Committee of Creditors, Non-appearance before the Adjudicating Authority, Non-conduct of the CIRP proceedings, Embezzlement of Ernest Money Deposit..etc.
The Committee observed that pursuant to the AA order dated 06.07.2023, Ms. Chaya Gupta replaced Mr. Vineet Aggarwal as the RP and the AA directed him to handover the relevant document to the new RP.
Despite the National Company Law Tribunal’s order instructing former RP to transfer control and relevant documents to the new Resolution Professional (RP), he failed to comply. Ms. Gupta reported the non-sharing of critical data and official CIRP email access by Mr. Aggarwal.
The Board found that the ex-IP’s negligent approach and lack of coordination in transitioning records to the new RP violated sections 23(3) and section 208(2)(a) of the Code, along with regulation 7(2)(a) & (h) of IP Regulations, and clauses 1, 12, and 14 of the Code of Conduct.
The ex-RP/ IP refuted allegations of non-cooperation in transferring responsibilities to the new RP, Ms. Chaya Gupta. He explained that Ms. Gupta informed him of her appointment on 12.07.2023 and requested a handover. He provided documents by email on 24.07.2023 and completed the transfer, including passwords and email IDs for CIRP, on 27.07.2023. Delays were attributed to his mother’s hospitalisation in Pune, which he communicated to Ms. Gupta. Despite ongoing handover efforts, Ms. Gupta filed a complaint with the IBBI on 26.07.2023, suggesting mala fide intentions.
However, the Disciplinary Committee observed potential non-cooperation from ex-RP/IP. The provision of documents and information in a fragmented manner contributed to an already delayed process. Despite considering his family medical situation, the DC cannot overlook his consistent non-cooperation with the new RP. Therefore, the Committee upheld the mentioned contravention.
Several contraventions have been clearly established, and the DC deems it unacceptable for an Insolvency Professional to defy or lack cooperation with the Adjudicating Authority (AA). The ex-RP/IP delayed the submissions to the Board and his unprofessional behaviour is incompatible with the necessary professionalism expected in his role. Therefore, invoking the powers under section 220 of the Code and regulation 13 of the IBBI (Inspection and Investigation) Regulations, 2017, the DC cancelled his registration with immediate effect.
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