The Disciplinary Committee of the Insolvency and Bankruptcy Board of India (IBBI) comprising Whole Time Member Jayanti Prasad has imposed a fine of Rupees Two Lakhs on the Company Secretary Anuj Kumar Tiwari for the alleged non-cooperation with the Inspecting Authority (IA) and delay in filing Form CIRP 7.
Regulation 40B (1A) provides that when specified activity is not complete within the specified date, the Insolvency Resolution Professional or Resolution Professional, as the case may be, shall file Form CIRP 7 within three days of the said date, and continue to file Form CIRP 7, every 30 days, until the said activity remains incomplete.
It was observed by the board that, “no monthly filing of the Form CIRP 7 was made by Mr. Tiwari as required by the provisions until the activity is completed.” Therefore, the same was held to be a contravention of regulation 40B (1A) of CIRP Regulations read with clause 13 of the Code of Conduct.
As per Regulation 4(4) of the Inspection Regulations, it shall be the duty of the service provider and an associated person to produce before the IA such records in his custody or control and furnish to the IA such statements and information relating to its activities within such time as the IA may require.
Additionally, as per regulation 4(7) of Inspection Regulation, it shall be the duty of the service provider and an associated person to give to the IA all assistance which the IA may reasonably require in connection with the inspection.
It was submitted by CS Anuj Kumar Tiwari that the inadvertent delay in sending was caused by personal reasons reported to the Board.
The board observed that the CoC members had become hostile when they were updated about the entire CIRP and the expected costs and the non-cooperation from the creditors that followed. It was however held that, these reasons cannot justify non-cooperation with the IA by Mr. Tiwari.
In light of the above observations of the contraventions of provisions and non-cooperation, the Disciplinary Committee imposed a penalty of Rupees Two Lakhs on CS Anuj Kumar Tiwari and cautioned the Insolvency Professional to be more careful in future and directs him to strictly comply with the applicable provisions of the Code and its underlying Regulations while performing his duties.
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