The Insolvency and Bankruptcy Board of India (IBBI) suspended an insolvency professional shall be for three months on the ground that he used the term ‘IBBI’ in his LLP’s name.
In the present case, Mr. Kapil Goel is a Professional Member of the Indian Institute of Insolvency Professionals of ICAI and an Insolvency Professional registered with the Board. He along with one Mr. Tilak Raj Chawla incorporated an LLP with the name “IBBI Insolvency Practitioners LLP”. An anonymous paper indicating the name “IBBI Insolvency Practitioners LLP” and its website ‘www.ibbi-ip.com’ was received in the IBBI.
The Board sought for a clarification from Mr Goel, as he given a misleading impression that the LLP has been incorporated by the IBBI or is in some way related to the Board. Mr Goel submitted that the use of the abbreviation “IBBI” was without any intention and motive to gain any material benefits and on receipt of the notice, he approached the Registrar to change the name of LLP.
Later it was learnt that the name has not been changed, and when asked to Mr Goel, he said that his application for modifying the name was rejected. Dissatisfied with the reply, the Board issued Show-cause notice against the IP and initiated disciplinary proceedings.
After hearing, the Board concluded that Mr Goel misleads the stakeholders of the insolvency and bankruptcy by incorporating an LLP by name, “IBBI Insolvency Practitioners LLP”.
“It also misled the Board stating that name change has been approved. He has been procrastinating for the last eight months to change the name despite continuous follow-up, including a show cause notice, from the Board. These actions of Mr Goel are the contravention of the provisions of clauses 1, 2, 10, 12, 14 and 24 of the Code of Conduct in the First Schedule to the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.”
While suspending him for three months from the register of the Board, it was also said that he shall not take up any new assignment till “IBBI Insolvency Practitioners LLP” is removed from the Company / LLP Master Data of the Ministry of Corporate Affairs.
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