IBBI confirms Order suspending IP Registration of Deloitte Partner for 3 Years [Read Order]

The Insolvency and Bankruptcy Board of India (IBBI) has confirmed an order of the Disciplinary Committee regarding suspension of the registration of Insolvency Professional, Mr. Savan Godiawala, for a period of three years and a penalty of amount equivalent to payments made to Deloitte Touche Tohmatsu India LLP after 23.07.2019 till now.

Mr. Savan Godiawala is a Professional Member of Indian Institute of Insolvency Professionals of ICAI (IIIP-ICAI) and an Insolvency Professional (IP) registered with the IBBI with Registration No. IBBI/IPA-001/IP-00239/2017-2018/10468. He is also a partner of the Deloitte Touche Tohmatsu India LLP.

Mr. Savan was appointed as the Resolution Professional in the Corporate Insolvency Resolution Process ("CIRP") of Lanco Infra Tech Limited and was later confirmed as the Liquidator by the Adjudicating Authority. Further, he was also acting as the Resolution Professional in the CIRP of Shirpur Power Private Limited and was later replaced by Mr. Dushyant Dave as the Liquidator.

The Disciplinary Committee observed that Mr. Savan Godiawala has not taken due care in interpreting his entitled fee as per sub-regulation 3 of Regulation 4 of the Liquidation Regulations. Though he had taken mitigating steps by refunding the amount of 92,44,758/- in the liquidation account of the CD, when mistake was told to him, however, fact remains that he has withdrawn the excess amount; whether it was unintentional or not is a subject matter of interpretation.

Confirming the order of the DC, the IBBI held that “The existence of conflict of interests is not explicit in certain situations, though such situations are covered under the general provisions. In this context, it is pertinent to note that emerging jurisprudence emphasis that IP is an officer of the Court. An IP therefore should ensure that his direct or indirect interest must not lead to any conflict of interest.”

“Hence, the DC, in exercise of the powers conferred under section 220 (2) of the Code read with Regulation 11 of the IBBI (Insolvency Professionals) Regulations, 2016 and Regulation 13 of the IBBI (Inspection and Investigation) Regulations, 2017 hereby suspends the registration of Mr. Savan Godiawala for a period of three years,” the IBBI said.

To Read the full text of the Order CLICK HERE

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